Originally conceived as a lifeline for endangered natural resources, “clean electricity” plants have become a counter and a source of safe and easy income for private individuals.
Tihomir Brajković owns three small hydropower plants in Bosnia and Herzegovina. He plans to build another six. He was convicted of tax evasion, yet having received a license to exploit natural resources he now collects renewable energy subsidies worth millions.
Doling out grants to non-governmental organizations has become a lucrative business for their founders and local politicians in Brčko District. Politicians buy votes in this way, while their friends from associations spend money without oversight.
Ilidža councilor Kemal Habibija took advantage of another person’s property to collect 50,000 KM from government coffers for a co-op he established with his family members. The property’s owner says he knew nothing about it.
Nearly 1 billion KM has been spent on subsidies in BiH over the past seven years. That sum was allocated and spent with little scrutiny and resulted in numerous irregularities.
Farmers in the Federation of BiH received grants based on appraisals done by expert witnesses who falsely date the time of construction and the number of barns and production facilities.
With faulty appraisals, expert witness Nedžad Izić helped farmers get grants they were not entitled to and secured millions in loans for private companies. The grants have been spent and a bank could not recover on its claims.
Cantonal Court in Tuzla sentenced Jerko Ivanković Lijanović, the former FBiH Minister of Agriculture, for illegal distribution of grants to a prison sentence and ordered him to return some of the money. Judiciary has yet to investigate all reports about illegalities in the approval of subsidies and for buying votes with taxpayer money.
Authorities have failed to protect FBiH cattle breeders so that they either use fraudulent means to obtain subsidies or they just quit agriculture.
During Jerko Ivanković Lijanović’ four-year term, the FBiH Ministry of Agriculture has allocated 2.8 million KM to persons and firms connected to the minister’s family. No agency has called it a conflict of interest or called for a sanction.
Almost 90,000 KM from the budget reserve went to office holders or their children for medical treatment and education.
Sarajevo Canton has given employment loans to firms for years, but some spent the money without employing anyone. Employment Bureau officials say that these programs aren’t going to be repeated soon. However, the combined debt of the firms to the Canton taxpayers to date is 2.5 million KM.
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