Zoran Tegeltija on the purchase of a building in Banja Luka: The increase in funds was approved at the request of the BiH ITA

Is it true that the Minister of Finance verbally issued an order to increase the amount for the procurement of BiH ITA facilities in Banja Luka, and how the amount for the purchase of the Main Office and the Regional Center of the BiH ITA increased from 37 million KM to just over 103 million KM, are the key questions posed by the Anti-Corruption Commission of the House of Representatives of the BiH Parliamentary Assembly to the head of the BiH ITA, Zoran Tegeltija, reports capital.ba.

We recall that the procurement of space for the BiH ITA in Banja Luka was first initiated 12 years ago, and Tegeltija himself reminded that a solution to this issue has been sought for 18 years, with several tenders issued. No bidders applied for the first tenders, while only one bidder applied for the last tenders – "Grand trade," owned by Mile Radišić.

“Regarding the building in Banja Luka, there were no bids in three tenders. The ITA did what it had to do; it requested additional funds. This is not the only project that required additional funds. The ITA engaged experts to evaluate the bid and based on that, it requested additional funds. They had one bid that reflects the market in Banja Luka. In the budget line, we have 103 million, of which 32 million is for the regional center, about 68 million for the Main Office, and just over three million for equipment,” stated Tegeltija during the hearing that lasted three hours.

Tegeltija emphasized that a tender for the procurement of the ITA building in Banja Luka has not yet been issued in accordance with the new budget, adding that two facilities are now being purchased, one for the Main Office and the other for the Regional Center. He added that he expects competition in this tender.

Verbal order issued to increase the budget by over 30 million KM?

The Chairman of the Commission, Branislav Borenović, and member Zlatan Begić asked Tegeltija whether it was true that a verbal order was issued by the then Minister of Finance to increase the amount by over 30 million KM, which, as they stated, the Audit Office had warned about. Tegeltija, on the other hand, claims that a request from the BiH ITA for the increase of that amount must have existed.

From the discussion, it was not entirely clear whether Tegeltija was at the helm of the BiH Ministry of Finance at the time in question, given that in 2023 there was a change of ministers, so the position was held by Vjekoslav Bevanda, Tegeltija himself, his deputy after Tegeltija moved to the BiH ITA, and Srđan Amidžić.

“The Ministry received an opinion with a note of caution. This is the budget, it is not a decision on multi-year capital investments. And you know who can approve funds, only the deputies can. That is the entire procedure. The increase was proposed based on a request from the BiH ITA,” said Tegeltija, noting that a request from the BiH ITA for the increase exists.

In response to Borenović's statement that in 2020 the Chamber of Commerce purchased a facility for 2,900 KM per square meter, while the BiH ITA's bid came in at nearly 6,000 KM, which is double the amount, Tegeltija said that comparison is not relevant.

“In that period, many buildings were sold, and the experts had that in mind, so let's not compare just two facilities,” emphasized Tegeltija.

The RS plans to hand over the premises currently used by the ITA to deputies and a member of the Presidency

Tegeltija also commented on the stance of the Minister of Finance of Republika Srpska to block this process, noting that there are many people who believe this process would have been completed long ago if it weren't in Banja Luka.

In response to Borenović's question about whether such an amount for the building is realistic, Tegeltija said that the ITA is one of the most important institutions in BiH.

“The RC in Tuzla, Sarajevo, and Mostar have been brought to a level where they can perform their functions. The Main Office and the RC do not have conditions for functioning. I am grateful to you who voted for the budget. I do not wish to discuss prices, nor to prejudge what the bid based on the tender will look like. The tender will look different. As far as I and the BiH ITA are concerned, everything will be public, you will have insight into everything, just so the Administration gets space,” stated Tegeltija.

When asked by the Chairman of the Commission whether this constitutes a conflict of interest, given that the owner of the bidding company "Grand Trade," Mile Radišić, is the godfather of the President of Republika Srpska, the President of the SNSD, and a man whose party is in power at all levels, Tegeltija responded:

“I have a similar question: if you are in conflict with someone, would you do everything to ensure that person does not get the job even though they deserve it?”

SNSD deputy Milorad Kojić emphasized that the Commission was tasked with monitoring the tender, not with hearing the director of the BiH ITA in this manner. He stated that Borenović showed a lack of knowledge of the legal system.

“I see this today as your defeat, and I am glad about that. But I ask you to stick to the profession and not to ask tendentious questions. This last question is extremely tendentious and has nothing to do with the position of the director of the BiH ITA. This is a café-style question; it has nothing to do with the audit report. You were not prepared for this hearing,” stated Kojić.

Regarding the statement that in earlier tenders it was specified that the facility could not be more than three kilometers from the city center, Tegeltija said that this is not known to him, but he also asked whether it should be located in Stričići.

He added that in Sarajevo it was specified that the facility must not be more than two kilometers from the Council of Ministers and concluded that the tender to be published does not contain a provision on distance.

Deputies also warned that there are by-laws defining that funds for capital investments cannot be increased by more than 10 percent.

“You have an instruction defining 10 percent, and you have the budget, which is a legal act. Let a lawyer interpret the strength of those arguments. The ITA starts from the market price and what the experts determined and requested financial resources. Many projects were completed by increasing funds. We still have a decision on the procurement of helicopters; do you think helicopters can be purchased with a 10 percent increase?” asked Tegeltija.

He also said that Borenović and Kojić know that across from the BiH ITA, a facility is being built where the business space costs 10,000 plus VAT.

“We must examine what is offered to us. A square meter of an apartment is sold for 6,000 KM, I see that in the offers,” said Tegeltija.

The Parliamentary Anti-Corruption Commission today heard ITA Director Zoran Tegeltija regarding the procurement of a facility for the needs of the Administration in Banja Luka, and Tegeltija stated at the very beginning that the institutions of Republika Srpska plan to hand over the premises they use to deputies, a member of the Presidency, and members of the BiH Council of Ministers for use.