NSRS Adopts Law Abolishing Budgetary Financing of Parties

(Patria) - The National Assembly of Republika Srpska adopted a law today in Banja Luka abolishing the financing of political parties from the entity and local budgets.

According to opposition and civil society organizations, the adopted law is in direct contradiction with the Law on Financing of Political Parties and the Election Law of BiH.

While the authorities claim the law reflects the will of the citizens not to finance political activities with public funds, the opposition warns that this undermines the legal order and opens the door to political corruption.

The law was proposed by SNSD, almost a month after High Representative Christian Schmidt made a decision to suspend the payment of money from the budget at all levels in BiH for SNSD and United Srpska.

Schmidt explained the decision as part of efforts to counter "flagrant attacks by the ruling coalition in Republika Srpska, led by SNSD and United Srpska, on the fundamental principles of the Dayton Agreement and the constitutional and legal order of BiH".

The opposition SDS warned that this is a blow and an attempt to 'shut down' opposition parties, reports RSE. SDS MP Ognjen Bodiroga said that the proposed law on financing political parties conflicts with the Constitution of Republika Srpska, as well as with the Law on Financing of Political Parties of BiH.

- You are essentially doing the same as Christian Schmidt, whose actions you consider colonial, illegal, and undemocratic. You are now doing the same to other political organizations. This will only affect parties that do not control political and public resources, that are not in power.

Your intention - ruling parties - is to replace revenues from your various regime companies. You will easily replace it. For you, this is a drop in the ocean - said Bodiroga.

The head of the PDP caucus, Igor Crnadak, spoke in a similar vein, considering the proposed law "catastrophic for Republika Srpska" and also contrary to the Election Law of BiH.

- This is a direct attack on freedoms and a shot in the democratic development of Republika Srpska - Crnadak points out.

And the ruling SNSD, which proposed the law, did not directly link its adoption to Schmidt's decision, but referred to the "stance of a larger part of the public" in Republika Srpska.

- The reason for such a solution lies, among other things, in the fact that the stance of a larger part of the public in Republika Srpska is that the work of political organizations should not be financed at the expense of citizens, given the significant financial resources allocated annually for their work in the budget of Republika Srpska and in the budgets of local self-government units - said the head of the SNSD caucus, Srđan Mazalica.

Transparency International (TI) BiH announced yesterday that the law, which the parliamentary majority sent for urgent procedure, will create a "parallel system and open a large space for corruption".

They explain this by the fact that private companies are allowed to receive donations from foreigners up to 50,000 euros, which is contrary to the state law regulating the financing of political parties.

Unlike the Law on Financing of Political Parties of BiH, the proposed law in Republika Srpska does not prohibit companies doing business with the state from donating to parties.

"This will enable the siphoning of public money into party coffers through privileged private companies, while on the other hand, it will severely hit all parties that do not control public resources.

This undermines the institutional order and creates legal uncertainty, as it introduces the jurisdiction of the Republika Srpska republican election commission, although the control of financing is prescribed by the Election Law and the Law on Financing of Political Parties of BiH and is within the jurisdiction of the Central Election Commission of BiH," stated TI.

According to data from the financial reports of political parties, SNSD received slightly more than two million KM from the budget at all levels last year, while United Srpska received slightly more than 395,000 KM.

With his decision, Schmidt ordered banks where these parties have open accounts to transfer the money paid to them from the budget to the account of the Central Bank of BiH, and to inform the Office of the High Representative (OHR) about it.