2023-2025 Over 2 Billion BAM Spent Without Basic Public Procurement Rules: Most on Loans, Concessions and Legal Services

(Patria) - The Public Procurement Agency of Bosnia and Herzegovina conducted the first comprehensive analysis of the application of exemptions from the Law on Public Procurement (Article 10a), covering the period from 2023 to 2025.

The results are alarming: more than 2 billion BAM of public money was spent without applying the basic principles of transparency, competition and equal treatment.

This analysis represents a key step in the preparation of the new Law on Public Procurement, which will introduce stronger control mechanisms and greater accountability in the spending of public funds.

In 2023, nearly 19,000 exemptions were recorded, with a total value of around 660 million BAM. In 2024, the number of exemptions decreased to 14,399, but the value rose to 1.14 billion BAM.

In the first five months of 2025, an additional 160 million BAM was realised through exemptions.
The largest amounts are related to loans, concessions, legal services and certain infrastructure areas.

"A significant portion of the exemptions relates to large entities and sectoral contracting authorities, which indicates systemic practices. What do these figures tell us? This trend points to regulatory gaps that open space for corruption risks, weaken market competition and call into question the efficient management of public funds. The public has the right to know how every convertible fening from the budget is spent," the Agency states.

Measures the Agency proposes in the new Law:

- Obligation to publish a special Procurement Plan for exemptions, in addition to the regular public procurement plan.

- Obligation to publish a Report on the implementation of exemptions, for full transparency.

- Special control mechanisms for high-value exemptions.
- Clearer demarcation between public procurement and contracts under special regimes (concessions, PPPs), with greater oversight.

"This is the first time exemptions have been analysed in such a comprehensive manner. Based on the findings, the Agency will incorporate concrete measures into the new law to ensure that no segment of public spending remains non-transparent. It is time to stop the practice of excessive reliance on exemptions. Public funds must be spent clearly, responsibly and in the interest of all citizens of Bosnia and Herzegovina," the Agency concludes.