30 MILLION KM: Aid received by companies without employees and those that laid off staff during the pandemic

(Patria) - In mid-December last year, the FBiH Government adopted a Decision on allocating funds to entities in the tourism and hospitality sector in the amount of 30,000,000 KM as financial aid under the circumstances of the COVID-19 pandemic. 19.5 million marks were allocated for hotels and similar accommodation, 6.6 million for travel agencies, 2.5 million for tour operators, and slightly over a million marks for spas and health resorts, writes Žurnal.

Federal auditors point out that the reduction in the number of jobs compared to the previous year was not considered.

"The number of employees as of September 30, 2020, which was one of the criteria for granting financial aid, has significantly decreased for a larger number of beneficiaries compared to the same period of the previous year - 'Europa' Hotel Holiday, Sarajevo and 'Termalna rivijera Ilidža' reduced their number of employees by 90, 'Europa' Hotel Europe and Grand Hotel Bristol Sarajevo reduced their number of employees by 68, 'AVAZ' d.o.o. by 65, Lječilište 'Reumal' Fojnica by 63," stated the auditors.

Although they laid off 90 workers during the pandemic, Europa Hotel Holiday Sarajevo received 569,209 KM from the Federal Ministry of Environment and Tourism, and Termalna rivijera Ilidža even 700,000 KM. Europa d.o.o. Hotel Europe Sarajevo laid off 68 workers during the pandemic; regardless, they received 643,852 KM in aid. Minister Đapo did not object to supporting Avaz d.o.o. either, even though they also laid off 65 workers during the pandemic. They received 429,273 KM from the ministry.

The Audit Office of Institutions of FBiH further determined that a smaller number of beneficiaries maintained the same number of employees or achieved an increase during the observed period.

"The amount of approved funds was not limited in relation to the number of employees, which is why some beneficiaries with only one or two employees received significant aid funds (251,149 KM and 450,483 KM), which particularly applies to the travel agency sector," the report stated.

Thus, Fortuna trade tours d.o.o. Mostar, with only two employees, received as much as 450,483 KM, while 251,149 KM was allocated to the travel agency Buena Vista d.o.o. Zenica, which had only one employee!

These companies were not the only ones. The Ministry of Environment and Tourism assisted several companies with only one employee or no employees. For example, HOTEL HECO received 89,245 KM, and Hotel "TOMISLAV" from Tomislavgrad 45,521 for only one employee.

The Ministry of Environment and Tourism allocated as much as 180,690 KM to "Hotel BM International" from Sarajevo, which has no employees. The hotel is owned by the company "BRAĆA MUJIĆ EXPORT-IMPORT," which, according to available data, had even higher profits in 2020 compared to 2019.

The Ministry allocated 23,522 KM to Hotel MARCONI from Međugorje, which also laid off all its employees during the pandemic. The agency Green Travel d.o.o. Sarajevo, with no employees, received 22,810 KM, and the tourism, trade, and services agency "PASTIME Tuzla" received 47,264 KM. "SH GROUP, P.J. PA AKDENIZ TRAVEL" from Sarajevo, which received 23,234 KM, also has no employees.

Out of 77 travel agencies that received funds, 52 laid off workers during the pandemic.

There was also money for business units that were not even registered in the court register!? Thus, Hotel "Carpe diem" Zenica received 108 thousand marks, although it is only a business unit of the security agency "AE sigurnost," whose owner is federal representative Eldin Vrače. The company increased its revenue, profit, and number of employees in the year of the pandemic!

The record holder with 700 thousand marks is "Mrkulićcompany" Sarajevo, or their Hotel "Hollywood" Ilidža, and there is also space for HDZ acquisitions like "UNION FOODS" in Čitluk, or the Tourist Settlement "HERCEG ETNO SELO MEĐUGORJE," owned by Ivan Dugandžić and Vlatko and Dobroslav Barbarić.

In addition to these, auditors concluded the unjustified allocation of 26 thousand marks for "ALM Turist" d.o.o. Hotel Plivsko jezero, Jajce, now owned by the daughter of the owner of the Bingo supermarket chain, Senad Džambić.

The Audit Office of Institutions of BiH discovered that, when evaluating and scoring the submitted applications, the Ministry of Environment and Tourism did not fully adhere to the criteria for allocating funds.

"The legal entity 'Fortuna trade tours' d.o.o. Mostar was approved funds for 14 employees, although it requested funds only for the basic organizational unit with three employees, and was approved a larger amount of funds than determined," stated the auditors.

The headquarters of the company Fortuna trade tours d.o.o. Mostar, with two employees, received 450,483 KM, the branch Stari Grad Mostar with eight employees received 304,132 KM, while branch 2 in Mostar with three employees received 121,676 KM. The founder of this company, Mili Bijavica, has since passed away due to Covid.