Illegal operations at the Development Bank of FBiH

The Development Bank of the Federation of BiH is currently operating without a full Management Board and with a depleted Supervisory Board, which seriously compromises the transparency of its work, a source from the bank confirmed to the Patria agency, warning of serious omissions in one of the most significant financial institutions of the Federation.

Although the mandates of three out of five members of the Bank's Management Board expired a few days ago, the Supervisory Board has not yet announced a competition for the appointment of new members or extended the mandates of the old Management Board members. At the same time, for several weeks, not all positions in the Bank's Supervisory Board have been filled, even though all competition procedures for filling the Supervisory Board have been completed.

The bank is currently managed by the Chairman of the Management Board, Salko Selman, who was appointed to this position at the proposal of the Party of Democratic Action (SDA). Before being appointed to head the Development Bank of FBiH, Selman was a member of the SDA Presidency.

The bank's secretary, Fuad Purišević, has also been dismissed from this position. The dismissal was carried out by Selman, although according to the Law on the Development Bank, he could not do so without a decision from the Supervisory Board, thus violating both the Statute and the Law on the Development Bank. Due to this omission, the Supervisory Board should impose a sanction, but this has not happened.

"This approach opens up the possibility for the SDA to fully control the Development Bank's funds with Selman's help."

"The Chairman of the Management Board, Selman, has previously exceeded his authority when he dismissed Secretary Purišević on his own, without the consent of the Supervisory Board. The Supervisory Board is the one that appoints and dismisses both the bank's secretary and the members of the Bank's Management Board. The question legitimately arises here as to whom the Supervisory Board urgently needs to dismiss and who is obstructing the lawful operation of the bank."

The Development Bank of FBiH functions such that decisions in the bank are made by the Management Board by a majority vote. The Management Board consists of four members and the Chairman of the Management Board. Selman is the Chairman of the Management Board, but he cannot make decisions without the consent of at least two other members of the Management Board.

In addition to Selman, the Development Bank's Management Board has so far included two members from the HDZ, one from the SBB, and one member from the SDA. These are Mr. sci. Marijan Oršolić, Vice-Chairman of the Management Board, Dalibor Milinković, acting Executive Director for Projects and Development, Dr. sci. Mersiha Slipičević, acting Executive Director for Risk Management, and Senija Bubić, acting Executive Director for Business Support.

Any decision made by Selman without the consent of the other members of the Management Board is highly questionable.

The Development Bank of FBiH is already burdened by the fact that the SDA appointed members to the Supervisory Board who also hold party positions, which is contrary to the Law on the Development Bank of FBiH. Senija Bubić is simultaneously a member of the Development Bank's Management Board and a member of the SDA Presidency, as well as the president of the SDA Women's Association and a member of the party's Cadre Commission. There are also suspicions that the Bank has granted loans to some members of the Supervisory Board appointed by the SDA, which is also against the law.