Friday, 13 July 2018 11:18

51st Sitting of the Committee on Finance, State Budget and Control of Public Spending

At the sitting held on 12 July, the members of the Committee on Finance, State Budget and Control of Public Spending reviewed a number of activity reports, annual reports and financial plans of the Anti-Corruption Agency, Republic Commission for Protection of Rights in Public Procurement Procedures and Securities Commission.


The Committee members accepted the proposal of Committee Chairperson Dr Aleksandra Tomic to complete a joint debate on items 1 and 2 and on items 5 through 11 on the agenda.

The Committee reviewed two Anti-Corruption Agency activity reports – 2016 and 2017, accompanied by reports on the implementation of the National Anti-Corruption Strategy of the Republic of Serbia for the period 2013-2018 and action plans for its implementation.

The reports were presented by Verka Atanaskovic of the Anti-Corruption Agency who said that the Agency had completed all of its tasks as stipulated by the Law and strategic documents. As regards the control of officials’ income and property, according to the Agency’s registry, 52,511 reports were processed in 2016 and 62,160 in 2017. Atanaskovic said that since its establishment to 2016 the Agency had processed 40,292 reports, while in 2017 that number rose 44,383, adding that control is an efficient mechanism for the suppression of corruption. In 2016 the Agency conducted 238regular inspections of public officials and 20 extraordinary ones, filed 259 charges for violation of the Law on the Anti-Corruption Agency and adopted 241 measures. In 2017, the Agency conducted 305 regular and 21 extraordinary inspections and pronounced 319 measures for violations of the Law. Atanaskovic said that 15 criminal charges are filed on average in a year and that in 2017 there were 17. In 2016 600 new complaints were submitted making it 2,567 when added to the 1,868 from 2015, and 535 were submitted in 2017, making the total 2,502. Atanaskovic also said that in 2017 two criminal charges of abuse of position were filed.

The Agency’s work on preventing conflict of interest was increased in 2016 as an election year, with the number of cases rising by 18.92%. There were 800 requests for permission to accept another public office or job and the public office holders’ acting as per Agency’s measures exceeded 90%. In 2017 these numbers reached 31.37% and over 96% respectively.

As far as controlling the financing of political activities is concerned, in 2016 the Agency reviewed the 2015 financial reports, the reports on the 2016 election campaign, and in 2017 the Agency inspected all the political subjects who took part in the presidential election, said Atanaskovic. In 2016, 273 misdemeanour charges were filed and 22 decrees passed per court rulings, while that number in 2017 was four. In 2017 the Agency did some preventive work as per the Chapter 23 Action Plan and in cooperation with the Standing Conference of Towns and Municipalities drafted a model anti-corruption plan for the local and provincial level. Between April and December of 2017, 41 local self-government units adopted their own anti-corruption plans. In 2016 the Agency created an application for the implementation of the integrity plan which is conducted every three years. The Agency’s recommendations remain the same – working on improving the Agency capacities and passing a new law on the Agency.

Following a debate the Committee adopted conclusions proposing that the National Assembly accept the Anti-Corruption Agency activity reports for 2016 and 2017, accompanied by reports on the implementation of the National Anti-Corruption Strategy of the Republic of Serbia for the period 2013-2018 and action plans for its implementation.

The Committee also reviewed the Activity Report on the Republic Commission for the Protection of Rights in Public Procurement Procedures for the period 1 January 2017 – 31 December 2017 and the Report on the conducted supervision of the implementation of the Public Procurement Law in 2017.

The Activity Report on the Republic Commission for the Protection of Rights in Public Procurement Procedures for the period 1 January 2017 – 31 December 2017 was presented by Commission President Hana Hukic who said that there was no change in the number of cases compared to 2016. The Commission had 345 session and passed 1,704 decrees, dominated by protection of rights in procedures (1,127 cases or over 66%), said Hukic. Of 1,127 rulings in 673 or 59% the claim was declared founded, in 118 the procedure was annulled in full and in the rest only partially. Hukic said that the revenue earned from the fees was 161 million RSD.

In the reporting period the Commission monitored whether its rulings were acted on, ruled on the annulment of public procurement contracts and filed 38 misdemeanour charges. The Commission also worked within the legal deadlines and achieved a considerable progress as more than half of the cases were resolved in the time allotted, said the Commission President.

Following a debate the Committee adopted a Conclusion proposing that the National Assembly accept the Activity Report on the Republic Commission for the Protection of Rights in Public Procurement Procedures for the period 1 January 2017 – 31 December 2017.

The representatives of the Public Procurement Administration presented the Report on the conducted supervision of the implementation of the Public Procurement Law in 2017. The registered value of the procedures was 342.9 billion RSD, 93% of which were open tender public procurements. The 2% negotiating procedure is at its lowest since 2002 and is below the European average of 5%. Only 10% of the procedures were halted, and framework agreements as a mechanism were used extensively as was the European Commission’s recommendation. The average number of offers per tender is three, foreign bidders have fallen to 3% and the 10% participation of lowest economic offer represents a negative trend. The Administration’s recommendations are to strengthen client organizations, market research, cooperation with bidders, contract execution transparency, which is the European Commission’s focus and needed for Chapter 5 – public procurement.

Following a debate the Committee accepted the Report on the conducted supervision of the implementation of the Public Procurement Law in 2017.

The Committee went on to review the Securities Commission annual reports for 2016 and 2017, as well as the amendment of the Securities Commission 2016 Financial Plan and Securities Commission 2017 Financial Plan, amendment and modification of the Securities Commission 2017 Financial Plan, Securities Commission 2018 Financial Plan and the amendment and modification of the Securities Commission 2018 Financial Plan.

The reports and plans were presented by Marko Jankovic, member of the Securities Commission, who said that the capital market has been in a steady drop since 2007 which was consequently followed by a drop in the Belgrade stock exchange, number of dealers and custody banks. This all points to the need to adopt a state-wide strategy, said Jankovic. He briefed the Committee members in detail on the supervision conducted by the Commission stating that the planned revenue of about 120 million RSD turned out to be only 44.6 million as a consequence of the market trends. The Commission’s expenditure was controlled and reduced by 40% compared to 2014.

Following a debate the Committee adopted a Report proposing that the National Assembly accept the Securities Commission annual reports for 2016 and 2017.

The Committee also adopted a Report proposing that the National Assembly accept the amendment of the Securities Commission 2016 Financial Plan and Securities Commission 2017 Financial Plan, amendment and modification of the Securities Commission 2017 Financial Plan, Securities Commission 2018 Financial Plan and the amendment and modification of the Securities Commission 2018 Financial Plan.

The Committee established the Proposal of the Decision on the termination of office of member of the Republic Commission for Protection of Rights in Public Procurement Procedures Branimir Blagojevic by resignation and forwarded it to the National Assembly for consideration and adoption.

Committee Chairperson Dr Aleksandra Tomic informed the Committee members that the next sitting will be held in Subotica on 18 July 2018 with the support of UNDP.

The sitting was chaired by Committee Chairperson Dr Aleksandra Tomic and was attended by the following Committee members and deputy members: Zoran Bojanic, Sonja Vlahovic, Goran Kovacevic, Zoran Despotovic, Momo Colakovic, Olivera Pesic, Veroljub Arsic, Srbislav Filipovic, Arpad Fremond, Djordje Milicevic and Milan Lapcevic.

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friday, 26 april
  • 10.00 - calling of elections for councillors of towns and municipalities in the Republic of Serbia(National Assembly House, 13 Nikola Pasic Square, Central Hall)

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