30 MILLION KM Aid Received by Companies with No Employees and Those That Laid Off Workers 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 in the circumstances of the COVID-19 pandemic. For hotels and similar accommodation, 19.5 million marks were allocated, travel agencies 6.6 million, tour operators 2.5 million, and for spas and health resorts just over one million marks, reports Žurnal.

Federal auditors point out that a 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, compared to the same period of the previous year, was significantly reduced for a large number of beneficiaries - '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, the health resort 'Reumal' Fojnica by 63,” the auditors stated.

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, yet they received 643,852 KM in aid. Minister Đapo was not bothered by 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 Office for Audit of Institutions of the FBiH further determined that a smaller number of beneficiaries maintained the same number of employees or achieved an increase in the observed period.

“The amount of approved funds was not limited in relation to the number of employees, which is why certain beneficiaries with only one or two employees received significant amounts of aid (251,149 KM and 450,483 KM), which particularly applies to the activity of travel agencies,” the report states.

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 helped several companies with only one employee or no employees. For example, HOTEL HECO received 89,245 KM, and Hotel "TOMISLAV" from Tomislavgrad received 45,521 KM for only one employee.

The Ministry of Environment and Tourism even allocated 180,690 KM to "Hotel BM International" from Sarajevo, which has not a single employee. The hotel is owned by the company "BRAĆA MUJIĆ EXPORT-IMPORT", which, according to available data, had even higher profit in 2020 compared to 2019.

Hotel MARCONI from Međugorje, which also laid off all its workers during the pandemic, was allocated 23,522 KM by the Ministry. Agency Green Travel d.o.o. Sarajevo, without a single employee, received 22,810 KM, and the tourism, transport and services agency "PASTIME Tuzla" received 47,264 KM. Also without employees is "SH GROUP, P.J. PA AKDENIZ TRAVEL" from Sarajevo, which received 23,234 KM.

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

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

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

In addition to these, the 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 retail chain, Senad Džambić.

The Office for Audit of Institutions of BiH discovered that, during the evaluation and scoring of received applications, the Ministry of Environment and Tourism did not fully comply with the criteria for fund allocation.

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

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.