The US Embassy in Bosnia and Herzegovina called on officials in Banja Luka to be transparent about a controversial contract with the Chinese company Elinc. The Embassy stressed the need for residents of the Republika Srpska (RS) entity to understand how their tax money is being spent.

In June, the RS Government signed a contract with Elinc to procure digital protection software for all institutions, despite the company being on the US sanctions list. The US Treasury Department's Office of Foreign Assets Control (OFAC) has sanctioned China Electronics Corporation (CEC), Elinc's parent company, due to its involvement in China's defence sector and related activities concerning military materials and equipment.

The Embassy raised concerns about the national security, sovereignty, and operational risks associated with partnering with companies from countries lacking adequate legal protections for buyers and consumers. The Embassy also questioned the opaque nature of the contract, particularly its conclusion outside of the usual public procurement processes.

“The lack of clarity surrounding this contract raises serious concerns about the services provided, the risks for RS residents, and why the RS government chose a company with ties to China's military-industrial complex over more reputable alternatives,” the Embassy's Public Relations Office told FENA news agency. “We urge officials in Banja Luka to be transparent and provide all relevant information so that the public understands how their tax money is being used.”