Development Bank of FBiH as an alienated center of power, Fejzić still in charge, Novalić silent

(Patria) - At the beginning of February, the Government of FBiH appointed Igor Živko as president, and Mehmedalija Hadžović, Adisa Omerbegović Arapović, Marija Gadžić, Sejfullah Krnjić, Zorana Zeljko, and Salih Dedić as members of the Supervisory Board of the Development Bank of FBiH.

However, nothing significant has happened since then regarding the functioning of this important institution.

Prime Minister of the Federation Fadil Novalić has not responded to Patria's inquiry about the developments at the Development Bank since April 19, while unofficial sources from the Government state that they expected things to move forward with the appointment of the Supervisory Board.

The Development Bank exclusively manages public funds owned by the FBiH, but no one knows who the loan beneficiaries are, by what criteria, how many loans are risky, or how to change this? Novalić has not answered this question, nor the one concerning the director of the Development Bank himself, Semir Fejzić (SDA). Fejzić, the acting president of the Management Board of the Development Bank of FBiH, had his mandate expire in November last year.

The responsible minister Jelka Milićević (HDZ BiH), as well as the Prime Minister of the Federation Fadil Novalić, have done nothing to ensure that this important financial institution has a legal head.
Fejzić's appointment itself was accompanied by legal acrobatics, and it is worth noting that the Law on the Development Bank of FBiH does not recognize the concept of acting director, but rather this is stipulated by the Decree on the Exercise of Authority in Business Companies with State Capital Participation within the Competence of the Federation of BiH.

It is incomprehensible that we have an acting director, whose mandate has expired, at the head of the Development Bank. Now that the Supervisory Board has been appointed, it is unacceptable that they have barely met since February.

Semir Fejzić was appointed acting president of the Management Board for a period until the completion of the tender procedure, which was never carried out.

It was clearly stated at the time of his appointment that he would remain acting until the completion of the tender procedure, for a maximum period of 12 months.
His appointment was also controversial and was the subject of public reporting. It was written that he lacks adequate educational qualifications and sufficient work experience. Semir Fejzić, namely, graduated and obtained his master's degree from the Faculty of Mining, Geology, and Civil Engineering at the University of Tuzla, and his doctorate from the Faculty of Mining at the University of Banja Luka, earning the title of Doctor of Technical Sciences.

According to Patria's sources within the Development Bank, Fejzić exercises arbitrary power, especially in the segment of the Guarantee Fund, which was established at the Development Bank of FBiH by the Government of FBiH.
Since its establishment, no public audit has ever entered this bank, including the auditors of the FBiH, the supreme auditing institution for FBiH entities. Furthermore, the Development Bank was without a Supervisory Board for a long time, which effectively means that the Management Board operated without any oversight.

The fact that Fejzić is controversial is also evidenced by the ongoing court case against him in Tuzla.

Namely, the Prosecutor's Office of Tuzla Canton filed an indictment against Fejzić, accusing him of committing the criminal offense of abuse of authority in economic operations as the director of the Bosnian Cultural Center (BKC) Tuzla from the beginning of 2012 to May 2015.

The indictment alleges that during this period, Fejzić violated the provisions of the Law on Budgets in FBiH and the relevant bylaws, and kept and used unauthorized funds from the income generated by BKC Tuzla from renting out premises, organizing events, or one-time hall rentals.

The TK Prosecutor's Office stated that investigations revealed that Fejzić instructed employees not to deposit such income, amounting to approximately KM 47,000, which was never recorded in the business books of BKC as its own revenue, into the deposit account of the TK budget revenues, which was a legal obligation for a budget user. The money from such generated income, which was not paid into the single treasury account, was used for various needs of BKC Tuzla.

In this way, he obtained unlawful property gain for that institution in the aforementioned amount, and caused damage to the budget of Tuzla Canton. The Government of FBiH will have to react urgently for the sake of the reputation of the Development Bank, as well as for the businessmen whom this bank is supposed to serve.