The Procurement Review Body of Bosnia and Herzegovina declared itself incompetent to act on an appeal filed by the Attorney General’s Office of Bosnia and Herzegovina over the procurement process for a facility in Banja Luka for the Indirect Taxation Authority of Bosnia and Herzegovina (ITA), Raport found.
The Body’s decision concerns the procedure by which the ITA BiH intends to purchase property owned by the Grand Trade in Banja Luka for the institution’s needs. The Grand Trade Company is linked to Mile Radišić, godfather of Milorad Dodik.
According to Raport’s information, the Attorney General’s Office of Bosnia and Herzegovina filed the appeal following the previous proceedings before the ITA BiH, and the case was forwarded to the Procurement Review Body at the end of January.
In early September, the Body issued a conclusion declaring itself lacking jurisdiction to decide on the appeal.
Body: Public Procurement Law Does Not Apply to Property Purchases
The document owned by Raport states that the Body made its decision on the position that the Law on Public Procurement of Bosnia and Herzegovina does not apply to contracts regarding the acquisition or lease of land, existing buildings, and other immovable property.
According to the document, the rationale also notes that the ITA publishing the procedure via the Public Procurement Portal does not, by itself, mean the procedure is subject to the provisions of the Law on Public Procurement.
In other words, the Body considers that using the Public Procurement Portal to publish calls and collect offers does not change the legal nature of the procedure if its subject matter is the purchase of real estate.
This position now raises a question about the next legal steps for the Attorney General’s Office of Bosnia and Herzegovina, which previously appealed the ITA’s decision.
Case Pending Before the Body for Months
According to Raport’s information, the appeal by the Attorney General’s Office of Bosnia and Herzegovina had been pending before the Body since late January, while the decision on declaring the lack of jurisdiction was made in early September. In the meantime, the Attorney General’s Office of Bosnia and Herzegovina did not issue urgencies to the Body or request information on the status of the proceedings.
This issue has attracted institutional and public attention for a long time due to the value of the property and the way in which the selection process for the ITA BiH facility was conducted.
The Anti-Corruption Commission of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina paid special attention to the case, which had previously considered information on the facility procurement process and requested action from the competent institutions.
Court of Bosnia and Herzegovina Previously Annulled ITA Decisions
The selection procedure for the ITA BiH facility previously went through multiple stages, including the annulment of certain decisions. In December last year, the Court of Bosnia and Herzegovina made a decision annulling the decision of the ITA BiH, and the case was submitted for re-examination.
Following that, the case was reconsidered, and the Attorney General’s Office of Bosnia and Herzegovina filed an appeal to the Procurement Review Body in January. In the meantime, the ITA BiH continued the procedure regarding the selection of a facility for its needs.
According to earlier information on this case, through multiple procedures and repeated tenders, conditions and bids were modified, while the Grand Trade Company remained the only bidder for the facility in Banja Luka.
The value of the property mentioned in the public domain was around 100 million BAM.
Emrić Seeks Urgent Reaction from the Commission
State MP Jasmin Emrić reacted to the latest decisions of the Body, which sought an urgent review of the case before the Anti-Corruption Commission of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina. According to the letter he sent to the Commission, Emrić believes that the Body exceeded the deadlines for action prescribed by the Law on Public Procurement of Bosnia and Herzegovina. He requested that the Commission examine the circumstances under which the decision on lack of jurisdiction was issued after months of proceedings.
It was proposed that the Commission hold a session on Monday, September 21, where the latest situation would be discussed.
One of Emrić’s proposals is to seek from the Attorney General’s Office of Bosnia and Herzegovina to file a lawsuit with the Court of Bosnia and Herzegovina within 30 days to challenge the conclusion of the Procurement Review Body.
He also requested a delay in the execution of the decision so that, while potential court proceedings are ongoing, possible consequences that would complicate further legal review of the case are prevented.
He Demands the Position of the Attorney General’s Office on the Grand Trade Contract
Emrić also proposed requesting the Attorney General’s Office of Bosnia and Herzegovina to refrain from issuing a position on the potential execution of a contract between the ITA BiH and the Grand Trade Company until the relevant proceedings are concluded. His proposal arrives at a moment when the facility purchase procedure is once again open to legal and institutional questions following the decision of the Procurement Review Body.
If a Commission does not have a quorum to hold its session on Monday, Emrić suggested an alternative – holding a meeting with representatives of the Attorney General’s Office of BiH at the same time to discuss the next legal steps.
Facility Value Remains in Focus
The purchase of the facility for the needs of the ITA BiH in Banja Luka has sparked controversy for a long time now due to its value, the location choice, and the procedure leading up to the potential signing of the contract. If the purchase is realized, the amount of 100 million BAM would represent one of the most significant individual real estate investments by a state institution.
For this reason, the procedure was previously monitored by representatives of the Parliamentary Assembly of Bosnia and Herzegovina, while the legal decisions by the ITA BiH were subject to review before the Court of Bosnia and Herzegovina.
The latest decision of the Procurement Review Body has now opened a new legal question – whether and to what extent a property purchase procedure conducted by the ITA through the public procurement system can be challenged through mechanisms provided under the Law on Public Procurement.
Further moves by the Attorney General’s Office of BiH and the Anti-Corruption Commission should reveal whether the case will be referred to the Court of Bosnia and Herzegovina and whether the facility acquisition process will proceed before the completion of legal reviews.
