WORLD BANK AND IMF SUPPORT REQUEST FOR DISCLOSURE OF PRIVATISATION AGREEMENTS

WASHINGTON, USA (October 25,2007) – World Bank (WB) and International Monetary Fund (IMF) officials supported the request of Transparency International (TI) for authorities in Bosnia to immediately present to the public agreements on the privatisation of the energy sector and to immediately end the practice of direct deals.

Transparency International Bosnian Board of Directors Chairman and member of the TI Global Board of Directors Boris Divjak took part in the Annual Assembly of the World Bank and the International Monetary Fund.

The central meeting was held in the building of the International Financial Corporation (IFC) with a group of World Bank and IMF energy experts. They analysed the situation in Bosnia following the intransparent privatisation of the refineries in Bosanski Brod on Modrica, the coal power plants in Gacko and Ugljevik and the ongoing tender for the privatisation of Aluminij from Mostar.

WB and IMF officials, together with representatives of several other influential international non-governmental organisations, supported the request of the Transparency International for the entire documentation on the sale of the major companies and the privatisation process of Aluminij to be presented to the public.

“IMF, in its platform concerning all its member states, including Bosnia, insists on clarity in public availability of agreements the governments make with private entities, especially when they concern natural resources. The agreements have to be made public, and current and future fiscal obligations need to be transparent and included in all mid-term development plans,” IMF officials said citing their policy of fiscal transparency.

The lack of relevant information was discussed at the meeting organised by the WB’s Information Centre.

Divjak said that it is difficult to grasp that the authorities can be so insensitive as to hide from their citizens the details concerning the sale of state property, i.e. the property of its citizens, especially in the cases of largest companies in the country.

If the authorities continue to reject the disclosure of these agreements, Transparency International will request the Bosnian prosecutor’s offices and other institutions in the country to intervene on founded suspicion that what is taking place is international economic crime of staggering proportions in the form of money laundering and without real intentions to revive production and restart strategic companies.

Divjak will meet with Extractive Industries Transparency Initiative (EITI) Chair Peter Eigen in Denpasar, Indonesia”, late this week when they will discuss ways in which EITI can assist Transparency International in Bosnia in committing the Bosnian authorities to responsible and transparent behaviour.