Minister in custody, Rad director charged, lower subsidies for companies, utilities to become more expensive: Collapse ahead

Written by: Amra Vrabac

Minister of Public Utilities, Infrastructure, Construction and Environmental Protection Bojan Bošnjak (Our Party) was arrested on November 15. Today is the hearing on extending custody for another two months. He is suspected of giving a positive opinion on the strategic environmental impact assessment report, by which he intended to legalize illegal urban construction projects on Bjelašnica for the suspects Ibri Beril and Nađa Milišić.

Bošnjak is being replaced by the Ministry's secretary Vildana Smajović. However, this can only last for 30 days, and that period is soon expiring, after which one of the members of the Government of the Sarajevo Canton will take over this portfolio. The Government, nor the political leaders that make up the government, have yet taken a stance on the dismissal of Minister Bošnjak. However, the entire situation in the public utilities sector is increasingly resembling a house of cards. Therefore, whoever among the Government members takes over this portfolio will not have an easy task.

At KJKP Rad, after the arrest of director Nijaz Salamović and former members of the Supervisory Board, against whom an indictment has been confirmed, the situation remains unclear. Salamović has been under restrictive measures since October 17, but in the court register he is still listed as director with a note that he is under restrictive measures. The Supervisory Board made a decision that he is replaced by Samir Kurtanović, one of the executive directors, by authorization. The new Supervisory Board held a session on November 29, where Salamović was supposed to be prematurely dismissed. However, from KJKP Rad today they could not answer whether Salamović has been dismissed. The Office for the Fight against Corruption of the Sarajevo Canton is apparently not informed about this either, given that Salamović is still listed as director in the register of appointed persons.

On the other hand, the situation at the Water Supply and Sewerage company has not reached its final epilogue either. Director Rusmir Salić was on sick leave, and was replaced by Adnan Šerak, one of the executive directors. In the Assembly of the Sarajevo Canton, there was open talk about the inactivity of VIK, and even from NIP they were ready to dismiss Salić due to numerous criticisms and unresolved breakdowns. However, a few days ago, the 135th anniversary of VIK was marked, and Salić addressed the guests. What can be heard more and more loudly is the announcement of price increases for utility services, primarily water and waste disposal.

Director Salić warned several months ago that the company's liquidity and regular salary payments were questionable.

At the protests of seven unions in front of the Government of the Sarajevo Canton on November 30, the president of the Cantonal Committee of Public Utility Workers, Rasim Ljucević, said that the situation in the public utilities sector is "catastrophic."

"According to some of our estimates, it certainly won't survive the summer; the system will completely collapse. There are several reasons for this, primarily the appointment of management structures with questionable diplomas, people for whom this is their first job," said Ljucević, claiming that the budget for public utilities of the Sarajevo Canton has been reduced to 28 million KM.

Former Minister of Public Utilities Almir Bečarević, who was replaced in this position by the arrested Bošnjak, said that the budget for 2025 has reduced subsidies for cantonal public utility companies, and this will be felt by the citizens of the Sarajevo Canton through increased utility prices.

"Subsidies for public companies in the 2024 budget amounted to 104 million KM, while the 2025 budget provides for an amount of 28 million KM. The reduction in allocations for public companies would, at first glance, be a positive signal, but knowing that most of these companies survive thanks to these funds, a collapse of the financial base of these companies can be expected," stated Bečarević after seeing the Budget projection.

The budget is in public discussion and should be adopted by the Assembly of the Sarajevo Canton by the end of December.

During the assembly discussions, representatives, mostly from SDA and SBiH, warned about the difficult state of public utility companies. This will also be shown by the reports for 2024, which the Assembly of the Sarajevo Canton should consider in the second half of 2025, unless due to the alarming situation it happens earlier.

When it comes to the parties of the troika that make up the government in the Sarajevo Canton, they are also aware that there are problems in the functioning of the Government as well as in the work of certain portfolios and companies. However, there is still no readiness to proceed with reconstruction and dismissal of personnel who have not justified expectations.