BiH's Legal Office Challenges Attempt to Collect Debt from Central Bank of BiH's Assets

(Patria) - The Legal Office of BiH has been taking legal action in the Viaduct case since May last year, said legal representative Jelena Cvijetić at a public hearing today. The public hearing was held before the Commission for Finance and Budget of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina and the Commission for Combating Corruption of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina (PSBiH). Commission members questioned the legal representatives of BiH, and among the former legal representatives, only Mlađen Mandić appeared.

"The only possibility that exists is for BiH to pay the debt to the plaintiffs, and then the possibility of a recourse claim. BiH is a party to the proceedings, you do not have the possibility to file a lawsuit at this moment. Any lawsuit is premature," said Cvijetić.

Legal representative Almina Pilav emphasized that the Legal Office challenged the plaintiff's request to collect the debt through the assets of the Central Bank of BiH.

"We challenged this considering that the CB BiH is not a party to the proceedings and was established by the Law on the Central Bank and has no possibility of payment being made through the CB BiH," stated Pilav.

The Legal Office of BiH attempted to reach an agreement with Viaduct to pay the debt without accrued interest, but the plaintiff did not agree to this.

Legal representatives stated today that the plaintiffs initiated the enforcement of the court ruling through several courts, which is an abuse, and they have informed the courts about this in their objections.

Legal representatives pointed out that the plaintiff did not specify an account to which the payment of 110 million KM should be made.

Mandić said that the problem arose because BiH signed an agreement by which it committed to taking over all obligations and all proceedings on the territory of BiH.

"We filed an objection of passive legitimacy, but the court rejected it every time," said Mandić.

The courts in Luxembourg and Belgium directly accepted the enforcement of this judgment, while in BiH the judgment must first be recognized. The court that recognizes the judgment does not examine its content. The judgment does not contain a giro account. When enforcement occurs, a request for enforcement is written, and it has its elements. This request for enforcement does not have a giro account, and it is an irregular request. Court decisions are not commented on, but we have used legal remedies, and I am convinced that they will be considered," said Cvijetić.

The Legal Office has already filed an objection with the Cantonal Court in Mostar regarding the seizure of assets of the Central Bank of BiH, as well as with the District Court of Banja Luka.

"Regarding the CB BiH, the court decides on the objection. If our objections are not accepted, we will appeal. We believe that the courts will be receptive to the arguments we have presented. The CB BiH has not undertaken the obligation to pay this debt by any document," said legal representative Almina Pilav.

As for BHANSA's funds, they are frozen but have not been transferred to Viaduct.

Former legal representative Mandić said that the Viaduct judgment can no longer be challenged and must be paid, and that the state can collect it through a recourse claim against the entity of Republika Srpska.

"At the moment when BiH pays the amount with interest, then BiH can collect this entire debt through a recourse claim, and the entity of Republika Srpska will pay it, and the Court of BiH has jurisdiction," said Mandić.

The Chairman of the Commission, Branislav Borenović, stated that all of this looks like a big scam with "local ingredients."

"112 million KM in damages have been caused. Do you believe that there are elements of intent or conscious inaction here to avoid an amicable settlement of the dispute, leading to this debt? Are there elements of conscious omission to reach an amicable settlement of the dispute?" asked Borenović.

Mandić, in his response, said that BiH authorities will collect this debt from Republika Srpska, which caused the damage.

"When I read that lawsuit, the casualness bothered me. When Viaduct offered an amicable settlement, I realized that there was some kind of scam going on. I said that the most honest thing would be for the Ministry to reach an agreement with Viaduct. The Government of Republika Srpska, chaired by Željka Cvijanović at the time, did not make a decision. No concession is without problems, and that the people of Republika Srpska are not paying for it. I think this is a general rush for mineral resources and concessions, from which BiH does not benefit, and we are constantly at a loss. That is my personal opinion. Look at all the concessions concluded by the authorities in Republika Srpska. I am not saying they are criminal, but they are questionable at the very least," said Mandić.