SDA “sacrificed” Adnan Delić: FBiH Banking Agency taken over by Amer Bukvić’s cousin!?

The Government of the Federation of Bosnia and Herzegovina halted the competition for the selection and appointment of a new director and deputy director of the FBiH Banking Agency at the end of March, and the Ministry of Finance was instructed to prepare a new competition procedure, reports the Patria news agency.

By some rule, as HDZ BiH leader Dragan Čović said at the time, that position belongs to his party. The media speculated that the new director would be Eugen Šušak, an advisor to the state Minister of Finance Vjekoslav Bevanda.

However, the fact that there has been no new competition for three months, and Šušak is no longer mentioned by anyone, proves that this is about inter-party trade-offs between SDA and HDZ.

According to unofficial information from the Patria news agency, Čović has ceded the position of director of the FBiH Banking Agency to SDA President Bakir Izetbegović. Economist Edin Hukić is mentioned as a candidate. Unofficially, he is the cousin of BBI Bank director Amer Bukvić.

In return, Izetbegović will cede the FBiH Insurance Supervision Agency to Čović, where Adnan Delić, son of the wartime commander of the Army of the Republic of Bosnia and Herzegovina, General Rasim Delić, has been director since November 2014. This means he will be removed from the director position before the end of his term, and the “least painful” way is now being sought.

When one reads what the FBiH Insurance Supervision Agency is responsible for, it is not at all surprising that Čović was very willing to cede the Banking Agency to Izetbegović.

Competences of the FBiH Insurance Supervision Agency

The Insurance Supervision Agency of the Federation of Bosnia and Herzegovina was established in accordance with the provisions of the Law on Insurance Companies in Private Insurance as the legal successor of the Office for Supervision of Insurance Companies in the Federation of Bosnia and Herzegovina. The Supervisory Agency has a regulatory and supervisory function over the operations of insurance companies and insurance intermediaries, as a supervisory institution in the insurance industry. The Agency is an independent and non-profit institution, which is accountable for its work to the Government of the Federation of BiH.

The main tasks of the Agency, in accordance with legal regulations, are:

- Issuing operating licenses to insurance companies and insurance intermediaries (insurance agents and insurance brokers)

- Providing opinions on acts of insurance companies that are required to be adopted by law (insurance conditions, premium tariffs, regulations on determining transfer premiums and reserved claims, regulations on determining mathematical reserves and their application in life insurance, etc.)

- Collection, processing and recording of data submitted to the Agency by insurance companies and insurance intermediaries in accordance with legal provisions

- Supervision of the operations of insurance companies, insurance intermediaries and related persons in the insurance sector in accordance with legal regulations

- Initiating and supervising procedures of temporary administration, liquidation and bankruptcy, and remediation of the financial condition of companies

- Revocation and withdrawal of operating licenses from insurance companies and insurance intermediaries in accordance with the provisions of the Law
- Initiating misdemeanor and criminal proceedings in accordance with insurance laws
- Adopting acts regulating the work of insurance companies, insurance intermediaries, and authorized actuaries in accordance with the provisions of the Law