The ITA receives another BAM 37.5 million for the building in Banja Luka

The coalition at the state level recently agreed on the adoption of the budget for this year. As part of this agreement, the Indirect Taxation Authority of BiH will receive an additional BAM 37.5 million for the purchase of a building in Banja Luka. This building is owned by Mile Radišić, a controversial businessman and godfather of the Dodik family, learned portal CAPITAL.

Namely, “Grand trade”,” owned by Radišić, was the sole bidder in two tenders held by the ITA for the purchase of a building in Banja Luka. However, his bid was rejected because the ITA lacked the requested 100 million KM.

Nevertheless, significant changes could occur if the parliament approves the proposed draft budget.

Namely, the ITA currently has BAM 67.5 million available, and the draft budget for this year proposes an additional BAM 37.5 million. This funding aims to finalize the financial framework and conclude a decade-long search for a property, ending their tenant status.

The likelihood of anyone other than Radišić and his company getting the money is minimal. The specific accommodation requirements sought by the ITA seem tailored exclusively to this businessman, effectively eliminating all other potential bidders.

This is further evidenced by the fact that in the previous two tenders “Grand Trade” was the sole bidder that met all the required conditions. However, in both instances, the ITA had to reject the bids due to insufficient funds.

The ITA was seeking a facility for its main office and regional center, encompassing 16.000 square meters in total. Specifically, the requirements included a minimum of 10.000 square meters for office space, 2.000 square meters for multi-purpose use, and at least 4.000 square meters for parking.

In the initial bid, Radišić asked for BAM 84.249.000 KM VAT, equivalent to BAM 4.950 per square meter, for a total of 17.020 square meters of office space. Including VAT, the total cost of the building would have been BAM 98.5 million.

However, due to insufficient funds, the ITA had to reject the bid.

In the second attempt, Radišić submitted two offers. The first offer was for a building of 12.280 square meters at a cost of BAM 71.1 million, excluding parking. The second offer, which included parking, was priced at BAM 98.6 million. However, it was rejected for the same reason.

Several years ago, the ITA only had around 36 million marks available. However, significant changes occurred in March of last year, just before Zoran Tegeltija was appointed as the director of ITA BiH, when over 30 million marks were approved through the budget.

In the meantime, Tegeltija, who previously served as the Minister of Finance and Treasury of BiH, was replaced in that role by his party colleague Srđan Amidžić, allowing SNSD to make an axis of cooperation between the ministry and the ITA.

This was indeed the pivotal moment that paved the way for the ITA to secure funding and finalize a deal with Radišić.

Namely, it is the Ministry of Finance and Treasury that approves funds for these purposes in the budget, and it was previously unresponsive to the ITA’s requests for additional financial support.

However, a notable shift in this stance came with the appointment of Tegeltija and Amidžić.

“Since the public announcement for the purchase of a building in Banja Luka in 2020, when an offer meeting the conditions was received, the Authority has not have the necessary funds and has continuously requested these funds from the Council of Ministers of BiH and the competent Ministry of Finance and Treasury of BiH”, said the ITA BiH.

They emphasize that the budget of BiH institutions for 2024 has not yet completed the parliamentary procedure. Only upon its publication in the Official Gazette will it be determined whether they will receive additional funds.

“The working conditions for ITA officers in Banja Luka are dire, as they currently operate out of four different locations, which significantly complicates the functioning of the institution”, said the ITA BiH.

They did not respond regarding whether and when they will announce a new call for bids, or if there will be any changes to the conditions.

Government is requesting the ITA to vacate its premises

Interestingly, alongside the discussion about purchasing a new building, the ITA is also facing pressure to vacate its current premises on Bana Lazarević Street in Banja Luka.

These premises are owned by the Government of Republika Srpska, and the ITA has occupied them for 20 years. Last year, the government sent a letter to the ITA requesting them to relocate so that other institutions could move in. Many view this as a form of pressure, but it also serves as an incentive to expedite the resolution of the accommodation issue promptly.

It should be noted that employees of the ITA of BiH in Banja Luka currently work in several locations and according to the data from 2022 they pay 43.000 marks per month in rent.

Transparency International BiH acknowledges the undeniable need for a new facility to house the Main Office and Regional Center of the ITA. However, they also highlight that the previous failed attempts to purchase a building indicate a need for change in approach or strategy.

“The most logical approach would be to establish clear conditions, particularly regarding location namely to expand beyond the city center or to consider options other than already existing buildings”, said Damjan Ožegović from TIBiH.

According to him, when there is only one bidder, it is clear that there is no competition, and that something has to change.

“They could have built a facility until now, if such an investment had been pursued”,” concluded Ožegović.

The reason why the ITA of BiH did not pursue the idea of investing as the developer to construct a custom facility tailored to its needs, thereby avoiding high construction margins in Srpska, remains unknown.

The Mayor of Banja Luka, Draško Stanivuković, commented on the ITA of BiH case, promising free land for building construction in August 2021. However, as later confirmed by the Authority, he did not follow through and remained silent on the matter.