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NATO

17 July 2003

Oleg Milisec - OHR
News that the BiH state institutions have exceeded their budgets by more than 20 percent brings to the fore the whole issue of the cost of government.  This is not simply about balancing the books but about examining what citizens get in terms of services and benefits for the money they pay in taxes in order to maintain government departments and their personnel.  The question goes well beyond the BiH state institutions.  It concerns the
Entities, the cantons, and the municipalities.  The plain fact of the matter is that there is too much government in BiH, offering too little to citizens, at too high a price.  In March the three prime ministers promised the Peace Implementation Council that they would launch a wholesale reform of Public Administration.  The object is simple - make government more cost effective so that citizens get a reasonable return for their taxes.  The recent reports of overspending by the state authorities are the tip of an iceberg.  A recent UNDP survey found that just one in four BiH citizen believes the current state of public administration is acceptable.  The survey found that citizens and business people think the biggest problem of government in BiH is inefficiency and waste.  Public administration reform has to get underway without any further delay.  Parliamentarians are looking for salary increases while the defence ministries are drowning in debt and housing new recruits in military barracks without water or electricity.  Clearly, the message hasn't yet sunk in - reform is not just a desirable aspiration but a desperate necessity.  OHR wants to see the start of a serious debate on the cost and effectiveness of governance in BiH. Yesterday in Banja Luka, following talks with PDHR Donald Hays, RS PM Dragan Mikerevic spoke of the need for "shock therapy" in clearing up the mess at RS Elektroprivreda.  Shock therapy is also needed across a broad reform front so that BiH starts winning the race to leave instability and poverty behind and turn itself into a stable and prosperous market democracy.  As the country earns more, there will be more money for governments to spend - sensibly.  When we talk about reforming public administration we are not talking about reducing services but about improving them.  This can be done by eliminating fraud, waste and abuse, and it can also be done by applying steadily growing tax income sensibly to ensure that the range of services offered to citizens is expanded.

Urdur Gunnarsdottir  OSCE
        No Electronic Statement Received.

Alun Roberts - EUPM
        No Electronic Statement Received.

Major James Billings - SFOR
Good morning.  My point today concerns the current financial situation in the RS and FBiH Ministries of Defence.  Recently, the OSCE has confirmed that the VRS exceeded its budget for 2002 by 6 million KM and it cannot account for 579,000 KM.  This situation is impeding important programs, especially in the area of demining.  The General Framework Agreement for Peace called on the VRS to operate at least 16 demining teams per year, but the RS demining has been slowed by a low rate of pay and a failure to pay wages on time. As a result, citizens of BiH continue to be unnecessary victims of these leftover weapons of war.  Meanwhile, the VF owes millions of KM for food, power and telephone services.  Last week, Elektropriveda cut power to VF barracks in Sarajevo, Zenica, Bihac, Travnik and Gorazde, while Vodovad cut off water to VF barracks in Rajlovac and Nedzarici.  This directly affects the soldiers' food, water and basic standards of hygiene.  To address these issues, reform of the Armed Forces in BiH must proceed quickly.  Parliamentary, democratic control of the armed forces will ensure the AFBiH are accountable to the civilian leadership and the people whose money they are spending.  In addition, state-level command and control of the armed forces will help to reduce unnecessary duplication of expenditures.  SFOR supports all efforts to improve co-operation between the VRS and the VF as part of the Defence Reform Process, with a view to meeting the conditions necessary for PfP membership and eventually NATO membership.

Do you have more information about Indian citizens who are allegedly in Bosnia-Herzegovina and whose visas have expired?  Today I learned from the State Border Service that they do have visas. 

I didn't get all the question on the receiver but if you're talking about the issue of State Border Service checking the visas of the Indian citizens, those inquiries are ongoing and I will not comment any further while those inquiries are still in progress.

Have their visas expired or not because I do not understand this inconsistency? Yesterday you told us that their visas had expired.

Can you confirm that their visas are still valid?  Yesterday you said that they had expired but today I got the information that they're still valid.

The information that the EUPM offices had with specialists in immigration laws on the three groups of Indian citizens who arrived here, their visas have expired.  A fourth group that came in on the 10^th of July had as we understand it, have limited visas from the 10^th until the 19^th of July, which is going to end in another day or two.  So, the inquiries are ongoing until the whereabouts of the three groups who are already in the country whose visas have expired are determined.