Audit reveals inefficiencies in asset management in FBiH

The audit examined eight key institutions involved in this process, including the FBiH Agency for the Management of Seized Assets, the Commission for the Management of Seized Assets of the Government of the West Herzegovina Canton, the Tax Administration of FBiH, and police administrations from the Tuzla, Zenica-Doboj, Central Bosnia, Herzegovina-Neretva, and Sarajevo Cantons.

Findings indicate that the institutions responsible for managing seized and confiscated assets were not sufficiently efficient, particularly in maintaining accurate records, preserving asset value, and ensuring optimal financial outcomes.

According to the Audit Office, existing records are incomplete and unstandardized. There is a lack of comprehensive data on storage costs, duration, and the financial impact of prolonged warehousing. Additionally, the reported value of temporarily stored assets is deemed unreliable.

Despite financial allocations for storage, adequate conditions to maintain asset value have not been ensured. The audit also found that efforts to sell confiscated assets were largely ineffective. Public advertisements for asset sales lacked visibility, leading to unsuccessful auctions and, in many cases, direct sales at significantly reduced prices. As a result, assets were often sold for amounts well below their estimated value.

The report highlights that the FBiH Agency for the Management of Seized Assets conducted only a limited number of sales, focusing exclusively on motor vehicles.

Meanwhile, the Commission for the Management of Seized Assets of the Government of the West Herzegovina Canton and most police administrations included in the audit did not conduct any sales during the reviewed period. Furthermore, revenue generated from the sale of confiscated assets related to tax debt collection was minimal.

The findings underscore the need for improved asset management practices, enhanced transparency, and stricter oversight to maximize financial returns and ensure the effective utilization of seized assets in FBiH.