Federal Ministry of Agriculture: Subsidies paid lawfully, Kovač must return 129,000 KM

Responding to accusations from the Coordination of Agricultural Associations that the Federal Minister of Agriculture Šemsudin Dedić paid subsidies amounting to 14 million KM based on decisions under investigation, the Ministry has also reacted.

The Ministry of Agriculture, Forestry and Water Management explains that subsidies were paid, but only to those business entities against whom the investigation has been suspended and the Federal Administration for Inspection Affairs has not found any irregularities! For all legal entities where any irregularities were noticed, subsidies have been suspended.

   Subsidy Control

- In order to ensure the legality and transparency of budget spending, at the proposal of the Ministry of Agriculture, Forestry and Water Management, the Government of the Federation of Bosnia and Herzegovina suspended payments for all decisions in the treasury signed by the former minister (Jerko Ivanović Lijanović, editor's note) and initiated subsequent controls and verifications of issued decisions through the Federal Administration for Inspection Affairs and officials of this Ministry.

Out of a total of 287 controlled decisions amounting to 11,435,948.99 KM, after the controls were carried out, 171 decisions totaling 6,360,866.17 KM were confirmed as regular, i.e., without identified deficiencies.

Concurrently with the subsequent controls and verifications by the Federal Administration for Inspection Affairs and officials of this Ministry, which have been ongoing since the current minister took office, competent police authorities and prosecutor's offices have seized a large number of these cases, and after conducting operational actions, informed the Ministry about the indictments filed or investigations suspended for them. Among other things, for the business entities mentioned in the statement we are refuting, no irregularities were found during the additional controls by the Federal Administration for Inspection Affairs, and the competent investigative bodies provided notification of the suspension of the investigation due to the absence of elements of a criminal offense – it was stated from the Ministry of Agriculture, Forestry and Water Management of FBiH.

- At the 71st session of the Government of the Federation of BiH held on September 29, 2016, the Government of the Federation of BiH accepted the information on these activities and tasked the Ministry of Finance to provide funds for the payment of regular decisions that have undergone the additional control procedure. The Ministry of Finance made payments on October 26, 2016, for 140 regular decisions amounting to 5,657,569.67 KM. Payments for the remaining regular decisions are expected in the coming period – the Ministry's statement further states.

   Who must return the money?

This ministry states that it is continuing activities of intensified supervision and control of legal spending of budget funds. In this regard, over the past 19 months, 32 individuals have been punished in criminal proceedings before competent courts for abuses in obtaining agricultural subsidies, and they have returned funds to the Budget of the Federation of BiH in the amount of 64,600 KM.

- We expect those who have decisions for the return of funds to do the same, including the company "Eko koza" Mostar, owned by Dževad Kovač, for whom the Federal Administration for Inspection Affairs has issued two decisions for the return of funds to the budget in the amount of 129,240 KM, and this Ministry has banned him from applying for financial support until the administrative dispute is concluded, according to the statement from the Ministry of Agriculture, Forestry and Water Management of FBiH, NAP reports.