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The case of Mato Žarić and others – acquittal for abuse of power charges

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  • Bosnia and Herzegovina

The case of Mato Žarić and others – acquittal for abuse of power charges

Case Date(s)
12/2022
Case Updated
02/2024

Case Summary

Phase

1st instance verdict

Offence

  • Abuse of functions

Institution

  • Public enterprise: Elektroprijenos-Elektroprenos BiH

Involved people

Allegedly involved people Mato Žarić General director, Elektroprijenos-Elektroprenos BiH
Mato Žarić
Politically exposed
Yes
  • Abuse of functions
Allegedly involved people Mila Bule Executive director and member of management, Elektroprijenos-Elektroprenos BiH
Mila Bule
Politically exposed
Yes
  • Abuse of functions
Allegedly involved people Aleksandar Šukalo Manager of the operational area of Banja Luka, Elektroprijenos-Elektroprenos BiH
Aleksandar Šukalo
Politically exposed
Yes
  • Abuse of functions
Allegedly involved people Zoran Manojlović Manager of the project in the operational area of Banja Luka, Elektroprijenos-Elektroprenos BiH
Zoran Manojlović
Politically exposed
Yes
  • Abuse of functions
Allegedly involved people Drago Malešević Manager of the commercial affairs department, in the operational area of Banja Luka, Elektroprijenos-Elektroprenos BiH
Drago Malešević
Politically exposed
Yes
  • Abuse of functions

In December 2022, the prosecutor’s office of Bosnia and Herzegovina filed an indictment against Mato Žarić, the general director of the public company Elektroprijenos-Elektroprenos BiH, and four other company employees for allegedly causing damage to the company to the amount of KM455,000 (app. €230,000). The court of Bosnia and Herzegovina issued a first-instance verdict in February 2024, acquitting all of the accused of charges.

In December 2022, the prosecutor’s office of Bosnia and Herzegovina filed an indictment against Mato Žarić, the general director of the public company Elektroprijenos-Elektroprenos BiH, and four other company employees for abuse of position or authority for allegedly causing damage to the company to the amount of KM455,000 BAM (app. €230,000). The court of Bosnia and Herzegovina issued a first-instance verdict in February 2024, acquitting the accused of all charges.

The case involving five accused employees of the public enterprise Elektroprijenos-Elektroprenos BiH revolves around their actions between April 2015 and August 2018, resulting in allegedly securing financial benefit to the private company Elektroobnova at the expense of the public company Elektroprijenos-Elektroprenos BiH. According to the indictment, Elektroobnova was awarded a tender in 2015 to construct a transformer station in Šipovo. The contract stipulated the deadline to finish the works, as well as penalties for the contractor in case of delays.

Despite failures to finish the project in time, Elektroobnova suffered no financial penalties. According to the indictment, Mato Žarić, serving as the general director of Elektroprenos BiH, was accused of failing to collect a contractual penalty as per an agreement. Drago Malešević, as manager of the commercial affairs department, was alleged to have not calculated the contractual penalty, while Zoran Manojlović failed to properly document the claim and to forward it for further action and collection. Aleksandar Šukalo, in his capacity as a manager, was charged with not bringing to the attention of the executive director for finance the non-compliance with contractual obligations of the selected contractor, while Mila Bule, as the executive director for finance, was accused of neglecting to inform the general director about delays in contract implementation and the possibility of activating a bank guarantee.

During the trial, the prosecution submitted over 100 pieces of material evidence related to the tender’s documentation about the construction of transformer station in Šipovo, which pointed to delays in contract implementation.

On 21 February 2024, the court of Bosnia and Herzegovina delivered a first-instance verdict, acquitting the accused of the charges due to the lack of evidence. As this verdict is not legally-binding, the case is currently subject to appeal and further investigation to gather evidence for presentation by the prosecution.

Therefore, the final outcome of the case still remains uncertain. As the case in question involves a public enterprise, its development is of public interest and a matter of continuous discussion in terms of social and political affairs within the country.

Further details

JURISDICTION/COURT

State/Court of BiH (Sud BiH)

LAWS (ALLEGEDLY) BREACHED

Criminal Law of Bosnia and Herzegovina,

Article 220, para 3, abuse of position or authority

FINAL SANCTION OR MEASURE

Acquittal

PROSECUTOR

Ćazim Hasanspahić

JUDGE

Mirsad Strika

Hasija Mašović

Goran Radević

SOCIAL HARM ON SDGs

16 Peace, justice and strong institutions

8 Decent work and economic growth

12 Responsible Consumption and Production

Acting as responsible persons in Elektroprijenos-Elektroprenos BiH, the accused allegedly took advantage of their official position, failed to perform their official duties, obtained material benefits for others and caused damage to the legal entity Elektroprijenos-Elektroprenos BiH to the amount of KM454,957 KM (€232,668.93 EUR) by failing to calculate and collect the contractual penalty and activate the bank guarantee.

Disclaimer

Every effort has been made to verify the accuracy of the information contained in this database. All information is believed to be correct as of 02/2024. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts.

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