'Respirators' Case: Prosecution Seeks Prohibition Measures, Defenses Rebut Indictment Allegations

SARAJEVO, (Patria) – The hearing in the case of Fadil Novalić and others, which is being conducted for several criminal offenses related to the procurement of 100 Chinese respirators, lasted more than three hours. The FBiH Government allocated 10.5 million KM and authorized the Federal Civil Protection Administration to purchase respirators, which was done through the company Srebrena malina owned by Fikret Hodžić. In addition to Novalić, Fahrudin Solak, Fikret Hodžić, the company Srebrena malina, and Jelka Milićević are also charged.

Today, prosecutors Mirza Hukeljić and Džermin Pašić read the indictment and gave opening statements. Although they wanted to clarify the request for prohibition measures submitted today to the Court of BiH and the defenses, the President of the Judicial Panel, Džemila Begović, did not allow an explanation of that request, which will be addressed at the next hearing.

The indictment charges Prime Minister Fadil Novalić with exceeding his powers as prime minister and expanding the authority of the Director of the Federal Civil Protection Administration, i.e., expanding his authority as the commander of the Civil Protection Staff.

The BiH Prosecutor's Office claims that the initial offer from Srebrena malina owner Fikret Hodžić referred to HCVE003 respirators, which was based on an offer from a company in Rijeka.

The Prosecutor's Office claims that Novalić signed a Letter of Intent for the HCVE003 model and later signed another Letter of Intent for the ACM812A model.

At the time of concluding the contract on April 3, 2020, Hodžić did not have the respirators and, in need of securing them, received an offer from a company in Montenegro, but for the ACM812A model, and the actual price of these respirators was lower, which the members of the association (an associated group allegedly formed by Novalić) agreed to in order to gain benefit. The payment order was entered on April 2, 2020, before the contract was concluded.

The indictment claims that Hodžić received forged invoices amounting to 30 million Chinese yuan, which person S.L. obtained from person S.C. in the United Kingdom.

Regarding Solak, it is stated that on April 24, 2020, he ordered person S.A. to correct the model in all documents from HCVE003 to ACM812A and to destroy the specifications for the HCVE003 model, convincing her it was a technical error.

The Prosecutor's Office states that Novalić obtained registration in the register of wholesale medical equipment distributors of the Agency for Medicines and Medical Devices, but that by April 25, 2020, 80 respirators had already been delivered to Sarajevo International Airport, while Srebrena malina received the permit on April 27, 2020.

The remaining 20 respirators were delivered on May 27, 2020, and the BiH Prosecutor's Office claims that the property gain was no less than 700,000 KM, while the damage to the budget is 10.5 million KM.

Regarding Finance Minister Jelka Milićević, who is charged with negligent work in office, the Prosecutor's Office believes she participated in decision-making and, as minister, did not ensure the implementation of the budget law.

The prosecutors claim that the plan was not only to unlawfully approve and transfer money to the FUCZ account but also to pre-select the legal entity that would carry out the procurement of respirators.

The Prosecutor's Office announced the hearing of numerous witnesses, experts, and the presentation of material evidence to prove the allegations in the indictment.

Although prosecutor Džermin Pašić attempted to mention prohibition measures aimed at "securing the proceedings," defense attorneys also reacted.

Attorney for Fahrudin Solak, Kadrija Kolić, said that the prosecutor is "threatening with some investigations," while attorney Senka Nožica stated she suspects "the prosecutor promised to announce prohibition measures today."

Prosecutor Pašić requested from the Court of BiH protection of dignity and a response to the insults from attorney Nožica.

Attorney Vidović was the first to present opening remarks, stating that the criminal offenses Novalić is charged with (money laundering, receiving gifts or other forms of benefit through influence peddling) are not only unsupported by evidence but are also not factually described in the indictment.

"The Prosecutor's Office intends to conduct an investigation during the main trial because it itself admits it has not clarified the alleged role, tasks, and contribution of each of the accused."

Vidović stated that the Prosecutor's Office ignored the actual situation and circumstances prevailing not only in BiH but worldwide. She cited examples from the world press from March 2020 regarding the coronavirus pandemic.

"We will prove that every action taken by the prime minister was lawful and aimed at mitigating the consequences of the pandemic. The Prosecutor's Office claims that Novalić, as prime minister, should not have dealt with the issue of respirator procurement, and we will prove there is nothing unusual about that," said Vidović, again referring to media reports about respirator procurement undertaken by governments worldwide.

She stated that the first contact between Prime Minister Novalić and Fikret Hodžić, as a member of the alleged group, was on March 29, 2020, through a third party. According to the prosecutor's address, this person is Asim.

"The plan and association the prosecutor's office speaks of are a construct. There is no evidence that Solak and the prime minister had any mutual contact between March 16 and April 3, 2020," added Vidović.

She emphasized that the FBiH Government had already considered the issue of respirator procurement at a session on January 31, at the request of the federal health minister, not the prime minister.

The defense's thesis is that the FBiH Government as a collective body, not the prime minister alone, gave consent for the allocation of funds from the current budget reserve in the amount of 4,950,000 KM.

She also mentioned that the purchased respirators are used in several countries, including Serbia, where they were registered even before the pandemic.

She announced that the defense will present its own experts, recognized specialists who have worked on international investigations.

She also added that the BiH Prosecutor's Office, through a press release dated May 11, 2020, stating the respirators were unusable, violated its own code of prosecutorial ethics and the presumption of innocence of those then suspected.

Defense attorney for the second accused, Fahrudin Solak, Marsela Bajramović, emphasized that the Prosecutor's Office did not establish the property-legal benefit allegedly obtained.

She said the defense's position is that the emergency session of the FBiH Government on March 16, 2020, was necessary and was attended by the then-director of the BiH Public Procurement Agency, Đenan Salčin. He said there was no obstacle to exempting the procurement from the Public Procurement Law, but later changed his opinion. Interior Minister Aljoša Čampara also said, "What law, go ahead with the procurement, it's about people's health," said Bajramović.

She points out that the FBiH Institute for Public Health never said not to procure these respirators.

Regarding the change in the respirator model, attorney Bajramović states that there was no change in price or delivery date and that it was a technical error.

Mirna Avdibegović, defense attorney for Fikret Hodžić, emphasized that the indictment is incomprehensible, and that the right to defense has been violated because the accused do not know exactly what they are being charged with in the indictment and which criminal offenses.

She stated that upon reviewing the BiH Prosecutor's Office file, they found evidence refuting the indictment, which the Prosecutor's Office did not attach to the indictment.

"No transfer of money related to this criminal proceeding has been made. The biggest illogicality is the allegations of money laundering. We all know what money is laundered—it's 'dirty' money, but here we are talking about budget money," said Avdibegović.

She added that she does not understand why the BiH Prosecutor's Office is not pleased that the respirators were verified, given that it concerns public health.

At the next hearing, Senka Nožica, who represents Jelka Milićević, will deliver opening remarks, and the request for imposing prohibition measures on the accused will also be explained.