As the economic sector in BiH cares about the financial, employment, sanitary and other inspections, the budget institutions do not care about the negative opinions of auditors on their business management. The reason is simple: there are no sanctions provided for the governmental institutions, regardless of the quality of their business management.
The auditors of budget institutions in their annual reports constantly indicate to great neglect of the BiH governmental institutions and a serious misuse of public funds. However, the authorised parliamentary bodies do not conduct procedures of determining responsibilities and therefore no one was ever suspended or punished in any other manner. The same or similar auditory reports repeat year after year, which indicates to absolute indifference of public institutions to the auditory reviews and audit in general.
KULT, in collaboration with numerous NGOs from BiH that primarily focus on the issue of public expenditure, prepared amendments to the Law on Audit of BiH Institutions, that relate to the following:
– identifying the institutions that break the laws year after year and do not follow the auditory recommendations,
– determining responsibility of authorised persons in the identified institutions,
– ordering the Parliaments to take corrective actions to liable persons and subject institutions,
– defining sanctions, as for the institutions, so for the liable persons,
– a more precise auditory process over the efficiency of the institutions, considering that the audit of financial management only cannot indicate whether the institutions justify the public funds they were entrusted with.
By regulating these issues, BiH would take concrete steps in fighting corruption, but also in fighting recession, due to the savings in public expenditure caused by new law regulations.
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