Dodik and Čović Counting: Companies Linked to HDZ, SNSD, and Russian Elections Submitted the 'Best' Offer for Election Technologies

(Patria) - Thanks to dumping prices, a consortium of IT companies linked to SNSD, HDZ, and a Korean company that organized elections in Russia, could get the job of supplying election technologies for the upcoming elections in Bosnia and Herzegovina. Namely, after opening bids for the procurement of election technologies, the consortium consisting of Planet Soft from Banja Luka, Katarina d.o.o. from Mostar, Core d.o.o. from Sarajevo, and the South Korean company Miru Systems has, at first glance, submitted the most favorable offer for this job, reports istraga.ba.

The offer is as much as 17 million marks cheaper than the next bidder (American Smartmatic). Furthermore, the delivery deadline offered by the consortium of companies close to Milorad Dodik and Dragan Čović presented the best offer in terms of equipment delivery times.

According to official data from the Central Election Commission (CEC), the consortium consisting of Planet Soft from Banja Luka, Katarina d.o.o. from Mostar, Core d.o.o. from Sarajevo, and the South Korean company Miru Systems has offered to supply election technologies for Bosnia and Herzegovina for 57.7 million marks (plus VAT). They have set the final equipment delivery deadline at 90 days from the date of contract signing, as well as an extended warranty period of five years.

The next offer in terms of value is the one submitted by the American company Smartmatic. They are asking for 74.5 million marks (plus VAT) for the supply of election technologies. The equipment delivery timeline is 139 days from the date of contract signing, and the extended warranty is five years. Therefore, in two segments, this offer is formally "worse" than the offer from the consortium comprising companies close to SNSD and HDZ.

The third offer was submitted by the company Artco Group. They are asking for 79.7 million marks plus VAT for this job, and their delivery deadline is 170 days from the date of contract signing.

Other offers are even "worse".

Given the offers, it will be difficult for the tender commission of the Central Election Commission of BiH to "overlook" the offer from the Consortium backed by Milorad Dodik, Dragan Čović, and the company that organized elections in Russia. Even if this happens, through the Appeals Review Office, where these parties have their people, the process could be slowed down or halted until this Consortium gets the contract.

Who are the companies that make up this Consortium and who are they linked to?

Katarina d.o.o. Mostar is an IT company owned by Milenko Čović, a distant relative of the HDZ president Dragan Čović. Katarina has received most of its contracts from state institutions and public companies managed by HDZ BiH cadres.

"Čović's company again received a multi-million tender for prison bracelets," read a headline from the portal Fokus published on July 1, 2024.

You can find similar headlines by searching for the company Katarina and the name Milenko Čović. Thus, this company has received contracts in the General Secretariat of the Council of Ministers of BiH, managed by HDZ BiH cadre Robert Vidović, then in BHANSA after Dragan Čović's son-in-law Davorin Primorac took over the management of that company. Furthermore, the son-in-law of Katarina's owner Milenko Čović, Marko Laco, was a representative of Abraham Group, backed by Amir Gros Kabiri.

Planet Soft is a company owned by Serbian businessman Vedran Jarić. The company is headquartered in Banja Luka and Belgrade. According to Capital, Planet Soft received a multi-million contract from Željeznice Republike Srpske, managed by the government under Milorad Dodik's control, at the end of last year.
"The companies 'Planet soft' from Banja Luka and Belgrade received the job of three-year maintenance of the SAP information system in 'Željeznice Republike Srpske' worth 2.3 million KM with VAT. Specifically, the company 'Planet soft' with an address in Banja Luka and New Belgrade will maintain this system for the next three years, and the annual value of the contract is around 800,000 marks with calculated VAT. As stated in the contract award notice, only one bid was received for the tender, and it was acceptable to the Railways. It is important to note that this is the first such job that 'Planet soft' will do for a public company in the RS since they obtained the SAP license," reported Capital.

The South Korean company Miru Systems, as part of this consortium, has had numerous scandals and controversies related to election technologies in several countries. Here are specific examples. This South Korean company supplied election technologies to the Democratic Republic of Congo for the 2018 and 2023 elections. The devices, according to local media reports, had numerous technical problems, which led to chaos during voting. International observers described the situation as "catastrophic." US authorities even sanctioned the leaders of the election commission in Congo due to suspicions of corruption related to contracts with the South Korean company Miru. This company also organized elections in Iraq, where about 70% of the devices failed in the 2018 elections.

In addition to Iraq, Congo, and the Philippines, the South Korean company Miru also supplied hardware for the 2018 elections in the Russian Federation.

It is precisely this company, which had contracts with the Russians, along with companies linked to SNSD and HDZ, that has the greatest chance of winning the job of supplying election technologies in BiH.