ESIS extension / Bosnia / Regulatory Developments / Update Memo 6

The following report outlines new developments in the past three months and the state of on-going developments.

State institutions, with the notable exception of the Council of Ministers, continued to meet regularly but failed to take significant decisions or adopt legislation at a satisfactory pace. The efforts since the signing of the Dayton-Paris Accords have largely failed to overcome the ruling political parties' opposing visions of the State. Delayed contributions by the Entities, who finance almost entirely the State budget, also undermine the functioning of the state institutions. As general elections are scheduled to be held in November, all country's strength is focussed on this activity.

For the first time, refugees are returning in significant numbers to their homes.

International patience with Bosnia and Herzegovina is running out. It is estimated that international funds for the country will decrease by at least 25% on an annual basis.

Three main areas are crucial to Bosnia and Herzegovina’s survival as a functioning state:

The Office of the High Representative more and more often takes command in its hands and issues so-called "Decisions" that cover everything from nominations of people to governmental appointments to laws.

There were several other Office of the High Representative’s Decisions on Amending several Laws, like Law on the Prosecutors’ Office, Law on Courts and Judicial Service, Law on Funds Management Companies and Investment Funds, Law on Banking Agency in RS etc.

Judicial and legal reform in Bosnia and Herzegovina is a crucial element of the peace implementation process. Without an independent and professional judiciary Bosnia and Herzegovina will be unable to safeguard the human rights of its citizens, nor will it be able to attract investors to build a sustainable economy. A comprehensive strategy on judicial reform is continually being reviewed and updated as reforms are achieved. The primary reforms in this area are related to the establishment of an independent and professional judiciary. This also includes reform of the police, the prosecution function and the correction systems.

During its meeting in Brussels in May, the Peace Implementation Council called on the High Representative to ensure rapid development of State-level regulatory mechanism for (among others) telecommunication and media.

The membership of the Board of the Telecommunication Regulation Agency has changed. The Office of the High Representative removed one member from his position due to his failure to show any commitment to the serious reform of telecommunications within Bosnia and Herzegovina and persistently obstruction to its implementation.

The new Telephone Numbering Scheme for all in Bosnia and Herzegovina (adopted by the Telecommunication Regulatory Agency) has been totally implemented in June. Both the "old" and the "new" numbering systems will run in parallel until autumn. The whole Bosnia and Herzegovina unique country code is 387 and there are 21 area codes.

The three fixed network operators concluded Interconnection Agreements. The Telecommunication Regulatory Agency was expected to issue the international licenses. PTT BiH and Telecom Srpska also agreed to introduce national roaming, beginning in June. These steps represent considerable progress in the telecommunications sector for Bosnia and Herzegovina.

A draft Freedom of Information Law, which will help lay the legal foundations of a more open society in Bosnia and Herzegovina, was announced by the Office of the High Representative. Under the new law, every member of the public will have the right to access to information held by the government and other public bodies. The new law aims to put as much information as possible into the public’s hands at the lowest reasonable cost. It also gives individuals the right to amend or correct their personal information and to attach a commentary to it. Members of state and entity governments, representatives of the media and political parties have been briefed about the proposed law. A series of public meetings have been planned immediately. The meetings will allow for comment from members of the media, non-governmental organisations, civic groups, legal practitioners and members of local governments.

This kind of legislation will promote much greater openness and accountability of government actions as it will limit the grounds on which information can be withheld and make it possible to challenge any unjustified secrecy. It will also lead to a more informed public discussion of policy, greater review of the facts before decisions are taken, and more opportunities for outside experts and the public to scrutinise data previously available only to government insiders. The Freedom of Information Act applies to all "public authorities", defines as "all government and administrative departments, agencies and related bodies, the courts, and bodies set up by statue that perform a public function". This means that the entire government as well as utilities, public hospitals etc. "Information" is very broadly defined as "any material which communicates facts, opinions, data, or any other matter, including any copy or portion thereof, regardless of physical form …". Further, this Act provides an institute of the "Information Ombudsman".

The Office of the High Representative issues a Decision ending the mandate of the previous Board of Governors of Radio Television Republika Srpska and at the same time naming a new one. This decision was taken in view of the failure of the RS authorities (Government and National Assembly) to meet several deadlines to pass new legislation for RTRS in order to bring it in line with international standards for public broadcasting. The new Board more closely reflects the cultural and professional composition required by the High Representative’s Decision an Amending the Law on RTRS from last year. Despite numerous discussions in the RS National Assembly, little has been achieved. The RS Ministry of Information created several draft laws on RTRS, none of which came close to the international standards required.

As was made clear by the Peace Implementation Council’s declarations, the State and Entities must establish genuine public service broadcasting that serves all the citizens of Bosnia-Herzegovina. The existing laws on Radio-Television were amended primarily to eliminate discriminatory provisions that violated international standards and to ensure compatibility between the Entities in this field. However, the laws were inadequate, and they fell short of the minimum international standards. The High Representative requested the adoption of public broadcasting legislation in February. A new Board of Governors was to be chosen by the National Assembly under the terms of the new legislation. So far, no public broadcasting legislation was adopted.

Given the failure of elected representatives to agree on appropriate legislation, the lack of cultural diversity of the actual Board of Governors of RTRS and the urgency of establishing a coherent legal framework for public broadcasting at the Entity and State level, the Office of the High Representative issued the Decision on Appointment of Board of Governors of RTRS to bolster the Constitutional right of Freedom.

This new Board shall be charged with the task of drafting appropriate legislation for RTRS, which shall conform to the highest international standards. Such legislation shall be prepared in consultation with the Founding Board of the Public Broadcasting Service of Bosnia and Herzegovina, legal experts in both Entities, the Government of RS, and the Office of the High Representative. Such legislation will be put forward to the RS Government and National Assembly of RS at the earliest opportunity and no later than October.

In full cooperation with the management of RTRS and the International Supervisory team, the Board shall develop and oversee the implementation of a strategic development plan with the aim of putting the broadcaster on a financially self-sustaining basis. In full cooperation with the International Supervisory team, the Board shall develop and oversee the implementation of a personnel and recruiting policy to ensure that the composition of the staff of RTRS reflects the cultural diversity of the citizens of the Entity and the constituent peoples of Bosnia and Herzegovina.

Old structures left over from the war and from the former Yugoslavia had to be replaced with efficient organisations that are editorially independent and financially transparent. The importance of replacing the legacy of "state" broadcasting with genuine public broadcasting that informs citizens and is free from political interference or ethnic prejudice leaded to the establishment of Public Broadcasting Service of Bosnia and Herzegovina. Quality public broadcasting should reflect also the diverse cultural identities of Bosnia and Herzegovina. Public Broadcasting Service of Bosnia and Herzegovina should produce an evening news program that would be broadcast at the same time in both Entities. Public Broadcasting Service of Bosnia and Herzegovina has been accepted as a member of the European Broadcasting Union.

The progress and development of civil society in Bosnia and Herzegovina varies depending on the political situation and legal environment in each Entity. This of course affects the work of local NGOs. The present framework is preventing the effective and easy operation of NGOs throughout the country and fails to address certain basic needs such as:

The Office of the High Representative is thus focusing on the passage of a new legal framework for associations and foundations. After the general framework is established, the Office of the High Representative will be concentrating on the review of the current legislation that regulates financial issues affecting the work of NGOs and those issues that represent an important obstacle to the sustainable development of a civil society.

3. Market: Privatisation, foreign investment, mergers, acquisitions, call for tenders, ...

There is an aim to close down "payment bureaux", a completely non-transparent institution through which all commercial and public bank transfers must pass.

International experts are brought in to help oversee the tender privatisation of large enterprises.

In September, fifteen public officials have been removed (by the Office of the High Representative) from office for obstruction of the implementation of the property laws. Those officials had various positions, including mayor, deputy minister, head of office.

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.