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Sarajevo Times > Blog > BUSINESS > What is behind the Secret Contract between the RS Government and the Chinese Company?
BUSINESSPOLITICS

What is behind the Secret Contract between the RS Government and the Chinese Company?

Published: July 29, 2024
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The system consists of 15 security hubs and is designed to defend against the most complex cyber threats, including state-sponsored attacks. It will protect public administration and 780 institutions at the republic and local levels, according to the Agency for Information and Communication Technologies of the Republika Srpska (RS).

The Agency for Information and Communication Technologies of the RS confirmed that a contract has been signed with the Chinese company ELINC for the procurement of software for digital protection. The contract was signed with a confidentiality designation and, in terms of scope, resources, and complexity, will be the largest information and communication technologies project in the RS. The trigger was the United States (U.S.) sanctions, as the shutdown of the official websites’ domains left the Government of the RS without access to Western-licensed programs.

In accordance with the government’s guidelines for crisis management in supply chains and politically motivated non-United Nations (UN) sanctions, the partner chosen was ELINC, a subsidiary of the “China Electronics Corporation,” a specialized manufacturer of equipment in the field of national information security systems. The project’s goal is to achieve complete protection of the cyberspace of the RS.

This confirmed the reports of one Bosnian and Herzegovinian (BiH) portal,  which first revealed that a secret contract worth 57 million BAM had been signed with a Chinese company. The editor of this portal questioned why an international tender was not announced, why the contract amount was not disclosed, and what the RS is obligated to do over the next 10 years.

“This contract is a continuation of non-transparent dealings with Chinese companies. Before this, we had highways, hospitals, and investments by Chinese firms in the energy sector, and none of these contracts have ever been published, except for the highway, and even that did not include the most important financial terms,” said Sinisa Vukelic, editor of this portal.

According to the editor of another portal, the key flaw is the secrecy of the contract.

“Through amendments to the Public Procurement Law that came into effect in December 2022, the clause on exemptions was expanded to more areas, creating more opportunities for abuse,” said Slobodan Golubovic, editor.

Last month, the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury sanctioned seven companies associated with Igor Dodik, son of Milorad Dodik, including the software company Prointer.

“Through his corruption and secessionist rhetoric, Dodik continues to undermine the institutions of BiH and enrich his family at the expense of the people, further jeopardizing BiH’s future in Euro-Atlantic institutions,” the U.S. previously stated.

To date, no new evidence has been presented to support these allegations, but we are unfortunately witnessing the fact that no institution is able or willing to protect us from the propagandistic actions of a foreign government, which have much deeper motives, as companies in BiH that pay all their obligations, taxes, and contributions and regularly pay their workers’ wages.

“My son has no ownership in any of these companies. Prointer has achieved reference rates to be able to compete for the most serious jobs in the region, but since it is hindered by the U.S. sanctions, it must be destroyed, and that is why sanctions were introduced,” said Milorad Dodik, president of the RS.

Due to U.S. sanctions, companies were re-registered and ownership changed, but according to warnings from the U.S. Embassy in BiH, these could also end up on the blacklist.

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