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Šego: Institutions of BiH do not have strategic plan of development or combat against corruption

Press Clipping 05th December 2013

Klix.ba: While addressing the members of the House of Representatives of the Parliamentary Assembly of BiH the main auditor of the Audit Office of the Institutions of BiH, Milenko Šego has said that the systematic assistance of government institutions, especially the Council of Ministers of BiH, is required for implementation of government bodies’ recommendations in relation to these reports.


"It should be pointed out that the budget for 2012 was not timely adopted, which creates some obstacles in work. What we have noticed and what is a part of our recommendations is the fact that the institutions do not have the vision of development, meaning they do not have the document popularly called strategic development plan, which most of institutions do not have", Šego has said.


One of the recommendations is the adequate plan of combat against corruption, which should exist in each institution that owns public funds.


"Institutions should draft their own plan of combat against corruption, which is owned by a small number of institutions. Each institution financed from the budget should have it", Šego has said.


Furthermore, the internal control system is required for efficient and applicative spending funds and according to the findings of the Office it is not on a satisfactory level.


"There are no internal controls in institutions, or there are some, but in insufficient measure, therefore it is required to establish this system based on three pillars – financial management, audit and central management unit", Šego has said.


Also, bylaws in accordance to the Law on Salaries and Remunerations in institutions have not been adopted and their adoption, according to the Audit Office, would impose some order in a sense of establishing unified rules in categorization of expenditures.


"There are no spending standards and public procurements have not been solved in an adequate manner as well as the capital investment system which is not transparent", Šego has concluded.


He thinks that the unsolved state property status increases the risk for inadequate spending. Also, one of the recommendations is also the introduction of international accounting standards in institutions of BiH.


Šego has pointed out that the status of public debt of BiH on December 31, 2012 was 7.131.367.000 KM, which is larger for 470.323.000 KM.


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