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OHR MISSION IMPLEMENTATION PLAN FOR 2005

 

7/3/2005
 

INTRODUCTION BY PADDY ASHDOWN, HIGH REPRESENTATIVE FOR BOSNIA AND HERZEGOVINA

The mandate of the High Representative derives from the General Framework Agreement for Peace of 14 December 1995 (the Dayton-Paris Peace Accords), which ended the four-year war in Bosnia and Herzegovina. The High Representative is responsible for co-ordinating the implementation of the civilian aspects of the peace agreement.

In the nine years since the end of the war, Bosnia and Herzegovina (BiH) has made substantial progress. The country now is now focused on integrating into EU and NATO structures, and stands within sight of the first key steps – membership of NATO’s Partnership for Peace (PfP) and a recommendation from the European Commission (EC) that negotiations on a Stabilisation and Association Agreement (SAA), the first contractual relationship with the EU, should begin.  In one crucial respect, however, progress has been completely unsatisfactory.  This is the failure of Republika Srpska (RS) to co-operate fully with the International Criminal Tribunal for the Former Yugoslavia (ICTY).  This failure has become a fundamental obstacle to BiH’s continuing progress towards Euro-Atlantic structures: the authorities of Republika Srpska must address this issue as a matter of urgency if the country as a whole is to move forward.

Yet, if you visit BiH today, you will find a country that is otherwise putting its past behind it and looking forward to a more promising future as an integral part of modern Europe.  The physical infrastructure – housing, roads, bridges and utilities – has been largely repaired.  More than one million refugees have returned to their homes.  BiH has a stable currency and enjoys normal diplomatic relations with its neighbours.  These, and many other accomplishments, are huge steps forward for a country that emerged so relatively recently from a conflict in which nearly 200,000 of its citizens lost their lives.  Growing stability has made possible a steady reduction in the size of the military peacekeeping force in BiH – from over 60,000 in 1995 to 7,000 at the end of 2004.  As a sign of this progress, leadership of the force passed from NATO to the European Union in December 2004.  The Office of the High Representative (OHR) will work as closely with the EU-led Force (EUFOR) as it has with the NATO-led Stabilisation Force (SFOR). The arrival of EUFOR is an indication of BiH’s steadily growing relationship with the European Union, of which it hopes one day to become a member, and of the EU’s long-term commitment to BiH. Another is the fact that, in addition to being High Representative, I am ‘double hatted’ as a EU Special Representative (EUSR). (For more details, see http://www.eusrbih.org)

But peace in BiH, although it grows stronger with every month that passes, is not yet wholly self-sustaining.  The country continues to face formidable challenges – to build strong and effective institutions, to strengthen the rule of law, to reform dramatically its economy and policing system, and to complete the transformation of its defence and intelligence structures.

The Mission Implementation Plan (MIP) sets out the core tasks remaining for OHR, and provides us with a means of evaluating our progress.  When we introduced the MIP in January 2003, we pledged to update it at the start of each year, so making sure that it accurately describes both what has been accomplished and what remains to be done. This document, which was endorsed by the Steering Board of the Peace Implementation Council (PIC) for BiH, represents the second such formal update.

The priorities set out in the MIP reflect the fact that, against a backdrop of declining donor resources and with new and pressing priorities vying for the international community’s attention, we need to distinguish rigorously between what is essential and what is merely desirable if we are to make peace in BiH self-sustaining.

OHR cannot and should not do everything. Our mission is peace implementation.  While many of the issues with which we deal reflect the fact that BiH is a country in transition, it is not the job of OHR to oversee BiH to the point that it becomes a wholly modern economy, on the verge of joining the European Union (EU).  That is not our role as a peace implementation mission.  It will be for others to guide and support BiH as it travels most of that road to Europe.  It is, however, the role of OHR to bring BiH to the point at which its peace is truly secure, so that the country can continue its journey towards Europe with confidence, supported by its friends, but relying, not on their efforts, but its own. 

BiH made significant progress towards that objective in 2004.  Some of the key goals set out in the MIP have been met; significant progress has been made in others; and in some areas, progress has been disappointing.  The achievements of the past year include:

  • Establishing a state-level High Judicial and Prosecutorial Council;
  • Establishing a BiH Ministry of Defence;
  • Launching fundamental reform of BiH’s system of indirect taxation;
  • Unifying the city of Mostar;
  • Providing BiH with a new defence structure based on civilian, state-level command and control and creating a common defence ministry; and
  • Merging the entity intelligence agencies into one state-level service. 

The European Commission’s Feasibility Study for BiH ( http://www.delbih.cec.eu.int/en/index.htm), published in November 2003, sets out sixteen areas in which the country must make significant and rapid progress if the Commission is to recommend to the European Council that talks should start on a SAA.  Continuing their work to achieve this result will remain a central objective for the BiH authorities in the year ahead.  We have made clear in the text where this work overlaps with that of OHR.  Our role will be to maintain our support of the domestic authorities in their efforts – not to carry out these reforms on their behalf.

Against this background, the overriding objective for OHR remains the same in 2005 as it was in 2003 and 2004:

  • To ensure that Bosnia and Herzegovina is a peaceful, viable state on course to European integration.

The OHR will focus its efforts in 2005 on the following core tasks:

  1. Entrenching the rule of law;
  2. Reforming the economy;
  3. Strengthening the capacity of BiH’s governing institutions, especially at the State level;
  4. Embedding defence and intelligence sector reforms so as to facilitate BiH’s integration into Euro-Atlantic structures.

As last year, the MIP lists a number of programmes under each core task.  Each programme, in turn, identifies a transition point at which the programme can be considered complete or handed over to a lead domestic authority to finish, often in concert with another international agency.

The OHR will also continue to work in partnership with the BiH authorities, assisting them in carrying out not only the recommendations of the EC Feasibility Study, but also the targets of the Jobs and Justice agenda to which they have signed up.  Together with the new NATO Headquarters, we will also continue to assist BiH to meet the outstanding requirements for both PfP membership and the ongoing process of defence reform.

It should be emphasised that the speed of BiH’s progress towards transition – and towards a reconfigured international presence that can relinquish its extraordinary powers – will be determined not by rigid timelines, but by a continuing assessment of the situation on the ground.  Are the habits of stalemate and obstruction being replaced by a dynamic of compromise and reform?  Is peace fully secure?  Has the rule of law been entrenched?  Is the state functional and fiscally viable?  Is BiH on track for European integration?  Only when we are satisfied that sufficient progress has been made in these respects will we be able to declare our mission fulfilled.  It follows from this that the more energetically our BiH partners implement reform – and the more BiH becomes a normal transition country – the sooner OHR will be able to hand over to a more traditional international support structure.  Our clear aim is to achieve that objective at the earliest possible opportunity.  We do not seek to prolong OHR’s role or presence for a day longer than is strictly necessary.  At this point, however, the lack of RS co-operation with the ICTY remains a major obstacle to the completion of our mandate.

This MIP remains, by design, a living document.  It will need to be flexible.  While it may be necessary on occasion to add tasks or programmes in the light of developments and experience, such additions should become increasingly rare.  On the other hand, deletions should become frequent as programmes and tasks are successfully completed.  

As before, each programme contains a detailed implementation plan that will be updated regularly. 

The MIP will continue to offer a transparent overview of OHR’s total effort.  It will remain an important tool in gauging our performance, the deployment of our resources and our accountability – both to the countries that pay for and support our work and to the citizens of Bosnia and Herzegovina whom we serve.

PADDY ASHDOWN
February 2005


MISSION IMPLEMENTATION PLAN 2005

Table of Tasks
Core Task 1:  Entrenching the rule of law
1.1 Programme: Reform key laws, regulations, and measures
1.2 Programme: Development of an independent and effective judicial and prosecutorial service
1.3 Programme: Build State-level criminal justice institutions
1.4 Programme: Restructuring of courts and prosecutors offices
1.5 Programme: Anti-crime and corruption assistance
1.6 Programme: Reinforce the rule of law by dislodging obstructionist networks from key institutions
1.7 Programme: Reshape the BiH criminal law enforcement landscape
Core Task 2:  Reforming the economy
2.1 Programme: Create a business environment capable of attracting investment and generating jobs
2.2 Programme: Tax Reform – customs reform and indirect tax reform (e.g., repeal of sales taxes and introduction of State-level VAT and direct profit tax reform)
2.3 Programme: Internal debt resolution
2.4 Programme: Public utilities
Core Task 3:  Strengthening the capacity of BiH’s governing institutions, especially at State level
3.1 Programme:  Reform of the Council of Ministers (CoM)
3.2 Programme:  Accountability of elected officials
3.3 Programme:  Reform of public administration
3.4 Programme:  Consolidating the self-governing status of Brcko District
3.5 Programme: Promoting regional stability and co-operation
3.6 Programme: Reform of Mostar
3.7 Programme: Municipal reform
3.8 Programme: Refugee return – Annex VII Verification Unit (AVU)
3.9 Programme: Reform of the Public Broadcasting System
3.10 Programme: Intelligence reform – establishing the Intelligence and Security Agency
Core Task 4: Embedding defence sector reforms so as to facilitate BiH integration into Euro-Atlantic structures
4.1 Programme: State-level command and control
 
 

CORE TASK 1 – ENTRENCHING THE RULE OF LAW

The rule of law and equality before the law are prerequisites to the establishment of a viable democratic state. Without the rule of law, Bosnia & Herzegovina cannot survive as a state, let alone integrate into Europe. The rule of law requires the application of a modern legal code and criminal procedures that protect the rights of the innocent while facilitating the pursuit of the guilty. It requires qualified judges and prosecutors who are independent. It requires skilled and dedicated police. It requires a well-trained legal profession that maintains high standards of professional conduct and integrity. All these players must be adequately equipped with laws, regulations and other tools – as well as properly funded – if they are to do their jobs. Every citizen must have equal access to a fair and unbiased justice system, and one in which the decisions of the courts are recognised and enforced throughout BiH. Peace will not be secure if extreme nationalists, including indicted war criminals and their helpmates in the ranks of organised crime, retain sufficient influence to destroy it. The grip of organised crime and political extremism on wide swathes of the economy and administration in BiH must be broken through consistent application of the rule of law. The continuum from investigation to incarceration needs to be credible and visible if the threats posed by politicised criminal networks are not to undermine BiH’s stability and preclude it from becoming a reliable partner in the global fight against both terrorism and organised crime.

1.1          Programme: Reform key laws, regulations, and measures

a.            Description: Establish modern civil, commercial, and criminal codes and procedures, measures for the security of judges and witnesses, regulations for administrative disputes, plus laws governing obligation and enforcement of civil judgments. Additionally, proper appellate procedures and addressing complex trans-border or cross-entity criminal matters, such as illegal immigration and money laundering, will be put in place.

b.            Transition Point: Adoption and application of the above laws, regulations, and measures, as well as training of the legal community are well underway. Other OHR Departments and Units are no longer in need of legislative drafting assistance to complete their projects.

c.            Contact: John Peyton, Rule of Law Department

1.2          Programme: Development of an independent and effective judicial and prosecutorial service

a.            Description: A High Judicial and Prosecutorial Council (HJPC) designed to preserve the independence and integrity of the judiciary has been established to reappoint judges and prosecutors to courts throughout BiH.  Judicial Training Centres for judges and prosecutors have become functional.  The Independent Judicial Commission (IJC) has been closed down.  The IJC has transferred some of its tasks to the HJPC, but the remaining items, such aslegislation and restructuring, must be taken over by others or organised as special projects.

b.            Transition Point: Completion by HJPC of the reappointment of judges and prosecutors; effective disciplining of misconduct by judges and prosecutors; and enactment of budgetary recommendations for judicial and prosecutorial branches.  Judicial Training Centres are functioning.

c.             Contact: John Peyton, Rule of Law Department

1.3           Programme: Build State-level criminal justice institutions

a.             Description: The responsibilities of the BiH State in the field of justice include international and inter-entity crimes. The establishment of the BiH State Court and the BiH Office of the Prosecutor – now well advanced – and of a BiH Judicial Police are required so that offences falling in those categories can be prosecuted. The BiH State Court will also have administrative competencies and be the ultimate court in electoral matters. Special Panels and a Special Department for the investigation, prosecution, and hearing of cases of Organised Crime, Economic Crime, and Corruption have been established at the State level and are being considered at the Entity level to address these complex crimes.  For an initial period, international judges and prosecutors will be assigned to the State Special Panels and the Special Department to assist with these complex cases and to develop the proficiency of national judges and prosecutors in this area.

b.            Transition Point: BiH State authorities discharge international and domestic obligations in the field of justice and internal affairs. The BiH State Court and Prosecutor’s Office are functioning and dealing effectively with administrative and criminal matters under their jurisdiction. The presence of international judges in the Special Panels for Corruption and Organised Crime and prosecutors in the Special Department can be decreased.

c.            Contact: John Peyton, Rule of Law Department

1.4         Programme: Restructuring of courts and prosecutors’ offices

a.            Description: Restructuring of courts and prosecutors’ offices seeks to boost the effectiveness of the judicial system while reducing costs by streamlining the number of courts and judges. The prosecutorial system is being restructured by eliminating Municipal and Basic Prosecutor’s offices throughout BiH and consolidating these offices at Cantonal and district levels to limit the possibilities of intimidation, rationalise expenditure, and increase effectiveness by facilitating specialisation.  The restructuring of the Entity prosecutorial system is directly linked to the establishment and functioning of the Office of the Prosecutor of BiH, with a Special Department for Organised Crime, Economic Crime and Corruption, which constitutes the global approach to reforming the prosecutorial system throughout BiH. This process goes hand-in-hand with reforming the law on courts, assistance in modernising court administration, measures to address administrative disputes more efficiently, and efforts to achieve transparency in budgeting for the courts and prosecutors’ offices.  The savings generated by restructuring must be reinvested in the justice sector in the years to come.

b.          Transition Point: Restructured courts and prosecutors’ offices are operating and are disposing of the case backlog.  The system is capable of handling high profile, complex cases. Continued international monitoring and support are available, and court administration projects are continuing.  The costs of operating the judicial system have been reduced, and the benefits of restructuring are being reinvested in the modernisation of the judiciary.

c.            Contact: John Peyton, Rule of Law Department

1.5        Programme: Anti-crime and corruption assistance

a.            Description: The provision of the necessary international support and investigative tools to the criminal justice system is imperative for dealing with the most dangerous anti-Dayton forces and their linkages with organised crime and corruption in BiH.  The arrest of ICTY indictees, in particular of Ratko Mladic and Radovan Karadzic, remains a major priority.  OHR will continue to assist those local and international bodies, in particular the ICTY, engaged in bringing these individuals to justice.

b.            Transition Point: Political obstructionists and organised crime elements are no longer able to prevent or reverse implementation of the peace accords, and criminals and ICTY indictees are being brought to justice.  International support networks are in place to continue the permanent effort against transnational organised crime and global terrorism.

c.            Contact: John Peyton, Rule of Law Department

1.6        Programme: Reinforce the rule of law by dislodging obstructionist networks from key institutions

a.            Description: The autonomy of public sector institutions (civil service, public broadcasting, law enforcement and security services, public corporations, etc.) from criminal and extremist forces must be established and preserved.  Those holding responsible positions must be free from political interference, carefully selected to ensure their suitability for their posts, and removed when they abuse their offices.

b.            Transition Point: Effective institutional safeguards, as described elsewhere in this document, are in place and operating, so rendering obsolete the need for international intervention/removals.  The ability to address serious abuse of office and maintain institutional autonomy from corrupting political forces has been demonstrated.

c.            Contacts: Ambassador Donald Hays, Principal Deputy High Representative (PDHR); John Peyton, Rule of Law Department

1.7        Programme: Reshape the BiH criminal law enforcement landscape

a.            Description: By expanding state competency and capability through the State Information and Protection Agency (SIPA) and achieving the legal restructuring and downsizing of entity forces into local community police, BiH will have a coherent criminal law enforcement structure capable of addressing the domestic and international threats of organised crime, international terrorism and illegal migration.

b.            Transition Point: State-level BiH authorities are investigating and prosecuting violators of state crimes and performing effectively in regional and international efforts to combat organised crime, international terrorism and illegal migration.

c.            Contact: John Peyton, Rule of Law Department

CORE TASK 2 – REFORMING THE ECONOMY

Economic wellbeing both creates and reinforces political stability. To be stable and secure as a state, BiH needs an economy that promotes legitimate enterprise within its borders, attracts direct investment from without, and progressively raises the living standards of its citizens. Substantial free market reform is required. BiH must consolidate the establishment of a single domestic market, do away with needless bureaucratic barriers, tackle its internal debt, and put a business-friendly tax regime in place if its citizens are eventually to prosper.  More immediately, the country needs to undertake the rapid fiscal, trade, budgetary, and statistical reforms required by the European Union’s Stabilisation and Association Process (SAP).

2.1         Programme: Create a business environment capable of attracting investment and generating jobs

a.            Description: A package of measures needs to be implemented to attract investment and support private enterprise (especially small and medium-sized enterprises).  This package consists of the adoption and implementation of a set of new laws, in particular commercial laws, which meet the requirements of businesses in a modern market economy. Furthermore, the measures are designed to remove barriers to business through the locally led Bulldozer Initiative, reform the land ownership registry to promote confidence in ownership, and revitalise the privatisation process.

b.            Transition Point: Legal barriers to the flow of goods, capital, labour, and services between the Entities have been removed, while investment, commerce, small business generation, and job creation are increasing.

c.            Contacts: Ambassador Donald Hays, PDHR; Edouard d’Aoust, Head of Legal Department

2.2         Programme: Tax Reform – customs reform and indirect tax reform (e.g., repeal of sales taxes and introduction of State-level VAT and direct [profit] tax reform)

a.            Description: The indirect tax system inside BiH requires major reform. The tax rates and structures must be the same legally and equally enforced and applied across the whole of BiH, regardless of Entity of location. Fiscal co-ordination and planning between the Entity and State governments must be significantly strengthened so that those who take decisions on the spending of public revenues work directly with those who set tax and customs rates.

The Indirect Taxation Authority (ITA) will become the single State-level Customs Administration and will also become the agency responsible for the introduction and implementation of Value Added Tax (VAT). The Governing Board of the ITA will be the sole responsible body in BiH for setting and making indirect taxation policy (including customs).

The current direct taxation system means that, for profit tax purposes, companies that do business in both Entities must operate and conduct tax planning as though they were operating in two different countries (three if the Brcko District is taken into account).  This is not consistent with the goal of achieving a single economic space.  Continuing with this type of existing profit tax system places businesses and companies at a major disadvantage to all the other countries in the region and provides a major disincentive to investors. Reform of direct tax is central to stimulating investment and promoting privatisation. It also represents a major step in building a single economic space in BiH.

b.              Transition Point: Full development of the ITA after implementation of the reorganisation plan and the successful introduction of VAT.  Indirect tax policy is made at the State level through the Governing Board, and indirect tax collection, administration and implementation are successfully carried out by the ITA.

The profit tax system for companies operating inside BiH is the same across BiH.  Companies are only required to report their entire profit tax liability to one administration, once in each fiscal/calendar year.

c.             Contacts: Ambassador Donald Hays, PDHR; Mark Campbell, Economic Department

2.3         Programme:  Internal debt resolution

a.            Description: Internal debt emerged as a significant threat to BiH’s economic stability and sustainability.  Its main components include frozen foreign currency deposits; claims on material and non-material damage that Entity governments acknowledged as legitimate; and budgetary arrears for the period from 1996 until the end of 2002.  These claims are estimated at KM 8.4 billion (approximately €4 billion), a level that Bosnia ’s economy cannot sustain along with its foreign debt of KM 4.4 billion.

b.            Transition Point: Adoption and initial implementation of legislation regulating internal debt.

c.            Contact: Ambassador Donald Hays, PDHR; David Whitehead, PDHR’s Office

2.4        Programme: Public utilities

a.            Description: Public utilities that provide affordable services of a high standard are a precondition for sustainable economic growth and a requirement for serious consideration of investment by foreign or domestic firms and entrepreneurs.  The focus must be on restructuring to improve competitiveness and efficiency and to exploit fully BiH’s favourable situation in the electricity sector, allowing for modernisation and expansion of infrastructures through private finance.

b.            Transition Point: Basic elements of sector restructuring have been achieved and the current market fragmentation is significantly reduced.

c.            Contact: Ambassador Donald Hays, PDHR; Herbert Pribitzer, Economics Department

CORE TASK 3 – INSTITUTIONBUILDING

A sustainable BiH must have institutions capable of meeting the country’s domestic and international obligations, including the requirements of the SAP, NATO’s PfP, and the Dayton-Paris Peace Accords.  The authorities in BiH now have a legal and institutional framework through which to deliver on Annex VII of the latter.  They must take the lead in assuring that all refugees and displaced persons who seek to return to their pre-war homes are able to do so. 

BiH likewise requires administrations that work effectively to deliver the services that taxpayers expect and citizens deserve.  To achieve this, central institutions need to function as such.  In particular, the Council of Ministers (CoM) must increase its capacity and improve its effectiveness.  Weak institutions and multiple layers of government have served in the past to blur lines of official responsibility, inhibit accountability, and undermine the state’s capacity to combat crime.  The deficiencies identified by the EC Feasibility Study need to be corrected, not least by integrating and streamlining all levels of government, including the city of Mostar.  The aim must be to put in place an affordable, effective and professional public administration – and one which is efficient, honest, and secure – to interface with the public when issuing identity documents, licences, and the like.  Toward this end, an Intergovernmental Task Force on Public Administration Reform (IGTF) was set up through the PIC in March 2003, taking over work begun by the Institution Building Task Force (IBTF) established a year before and formally discontinued in early 2004.

3.1         Programme: Reform of the Council of Ministers (CoM)

a.            Description: The CoM needs to develop the capacity to fulfil its responsibilities and to enable BiH to proceed within the EU’s SAP, a pre-requisite for which is an effective interlocutor for EU institutions at State level.  Substantive reform, including an end to rotation of office and a professional secretariat and policy planning staff to support the Chair, are crucial to ensuring enhanced capacities and an effective CoM.

b.            Transition Point: The CoM has essential ministries, is formulating government policy, and is supported by an integrated, civil service-based secretariat.

c.           Contact: Ambassador Werner Wnendt, SDHR/Germany; Edward Llewellyn , Head of Political Department

3.2       Programme:  Accountability of elected officials

a.           Description: High standards must prevail in public life.  A mechanism must be put into operation that ensures parliamentarians respect conflict of interest standards and a code of ethics.  Standards for immunity of elected officials are required that prevent rather than promote abuse of public office.  Audit agencies should be fully enabled to exercise their watchdog functions.

b.            Transition Point: A functioning domestic system ensuring that elected officials are held accountable for abuse of office.

c.            Contacts: Ambassador Werner Wnendt, SDHR/G; Edward Llewellyn, Head of Political Department

3.3        Programme:  Reform of public administration

a.            Description: Public administration in BiH must be streamlined to affordable levels in line with a comprehensive national strategy.  Civil service laws need to be implemented to promote apolitical, merit-based appointments and promotions, as well as to prevent politically motivated dismissals.  Professional standards need to be developed and enforced to ensure that institutions function efficiently, openly and accountably.

b.            Transition Point: Civil service agencies are functioning effectively at state and entity levels.  Public administration is beginning to be streamlined to affordable European levels and is progressively applying professional administrative practices.

c.            Contact: Ambassador Werner Wnendt, SDHR/G; Bianca Schoenberger, SDHR/G’s Office

3.4        Programme:  Consolidating the self-governing status of Brcko District

a.            Description: Implementation of the Dayton International Arbitral Tribunal Awards for Brcko can be considered complete when the Supervisor can report to the Tribunal, with the approval of the High Representative, that: (1) the District’s multiethnic institutions of democratic self-government are working both “effectively and apparently permanently” without challenge by the Entities; (2) that the IEBL is no longer of significance in the District; (3) that the District’s economic revitalisation is self-sustaining; and (4) that the Entities and BiH State-level institutions have demonstrated both willingness to accept the self-governing status of Brcko District as defined in the Arbitral Awards and capacity to cooperate with the District to solidify its status as a permanent unit of self-governance under the sovereignty of BiH.

The fourth goal can perhaps be most effectively achieved, first, by State-level legislation that confirms Entity and State acceptance that the Brcko International Arbitral Awards are an integral part of the Dayton Peace Accords and are binding on all parties; and, secondly, by the establishment of appropriate mechanisms for Brcko District to be effectively represented in BiH institutions.  Ways and means of achieving this goal should be considered carefully and expeditiously.  In mid-2005, we should assess progress on these fundamental requirements and prospects for achieving full implementation of the Arbitral Awards by the end of 2005.

b.            Transition Point:  Before concluding the mandate of the Brcko Supervisor and ending the supervisory regime, the Supervisor, with the approval of the High Representative, must report to the Arbitral Tribunal that the Awards have been fully implemented.  Many of the Award’s specific requirements, such as refugee return, property restitution, repair of infrastructure, establishment of executive and legislative bodies, an independent judiciary and police, a multiethnic school system, and holding elections have been implemented in the District.  Sustainable economic revitalisation, completing the reform and harmonisation of legislation within the District and thus abolishing the IEBL, ensuring that the District’s multiethnic and democratic institutions of government are “functioning effectively and permanently” and that the Entities as well as BiH institutions fully accept the District’s status as a self-governing unit of administration remain to be completed.  The Supervisor must be confident that District and State institutions can ensure the viability of the District’s self-governing status and its ability to resolve any future conflicts or contentious issues in a way that respects the status of the District under the Final Award.  This process would be greatly facilitated and expedited to the extent that Entity and BiH institutions accept and respect the Brcko Final Award as part of the structure of rule of law in BiH.

c.            Contact: Susan R. Johnson, Brcko Supervisor

3.5        Programme: Promoting regional stability and co-operation

a.            Description: Regional cooperation is central to ensuring a stable and prosperous BiH.  The European perspective of the countries of the western Balkans requires good neighbourly relations and enhanced cooperation between BiH and its immediate neighbours, founded on the principles of sovereignty, territorial integrity, and the inviolability of borders. Further steps forward are focussed on border issues and the strengthening of regional cooperation within the framework of the EU’s SAP.

b.            Transition Point: BiH is ready to negotiate a Stabilisation and Association Agreement (SAA) with the EU and its member states.

c.            Contact: Edward Llewellyn, Head of Political Department; Natacha Corcuff, Political Department

3.6        Programme:  Reform of Mostar

a.            Description:  Mostar was formally united by the High Representative’s Decision of 28 January 2004.  For Mostar to develop into a regional centre of economic growth, its functional and legal unity must be consolidated in a manner that promotes efficiency in the delivery of services to residents, while ensuring the fundamental rights of all citizens and constituent peoples, in accordance with European standards.

b.            Transition Point: The full establishment and basic functioning of the authorities of the City of Mostar in accordance with the Statute of the City of Mostar and other cantonal, entity and state legislation.

c.            Contact: Ambassador Werner Wnendt, SDHR/G

3.7          Programme: Municipal reform

a.            Description: As part of the process of reforming public administration and improving local self-governance and the cost-efficiency of public services, municipal reform is essential.  It will enhance the ability of local authorities to regulate and manage a substantial share of public affairs under their own responsibility and, in the interests of the local population, to deliver basic public services closest to the citizen in an effective manner and in line with available resources.

b.            Transition Point: State and Entity legislation is harmonised with the European Charter on Local Self Government.  Funding and responsibilities of municipalities have been harmonised.  All layers of government in BiH are cooperating on issues of local self-government and key sectoral legislation is in place that strengthens service delivery at the level of government closest to citizens – the municipal level. 

c.            Contact: Ambassador Donald Hays, PDHR

3.8        Programme: Refugee return (Annex VII Verification Unit)

a.            Description: Given the ongoing scale of the return process and the goal of the Ministry for Human Rights and Refugees (MHRR) to achieve substantial completion of Annex VII by 2006, OHR will be monitoring the performance of domestic institutions.  OHR will also monitor and confirm completion of the certification process, promote alternative means of financing, and advise the High Representative on all Annex VII issues related to the property laws and the sustainability of return by refugees and displaced persons. 

b.            Transition Point: The Return Fund – in which the State, Entities, Brcko District and, ideally, bilateral donors participate – is fully established and functioning.  The State Commission for Refugees and Displaced Persons is representative, functioning and capable of both coordinating the realisation of Annex VII objectives and disposing, in a transparent and non-discriminatory manner, of the Return Fund’s assets. Fully functioning MHRR regional centres are ensuring the required level of harmonisation and coordination of Annex VII-related activities across BiH, as well as the proper implementation of return and reconstruction projects and the confirmation of the final completion of the Property Law Implementation Plan (PLIP) by all municipalities. 

c.            Contact: Ambassador Werner Wnendt, SDHR/G

3.9       Programme:  Reform of the Public Broadcasting System

a.            Description: The task of the BiH authorities is to build a genuinely public, professional, financially sustainable, and politically independent public broadcasting system in BiH.  To meet this objective the BiH authorities will need to adopt new legislation that ensures the establishment of a functional, properly regulated system, made up of three broadcasters and shared infrastructure.  Progress in this sector is an integral element of BiH’s progress within the EU’s Stabilisation and Association process.  OHR will work closely with the EC in support of this Feasibility Study requirement.

b.            Transition Point: PBS established as a viable and financially and editorially independent public broadcasting system.  In practice, this will mean the new laws on the public broadcasting system are in place, are being implemented (in particular with regard to governance and funding mechanisms), and that the initial phase of cost cutting and eliminating duplication is complete. 

c.            Contact: Ambassador Werner Wnendt, SDHR/G

3.10        Programme:  Intelligence reform: Establishing the Intelligence and Security Agency

a.            Description: Establishing a single, reformed, efficient and non-political State-level intelligence agency (OSA) in place of the existing entity-based intelligence services.

b.            Transition Point: OSA is gathering and disseminating reliable intelligence on threats to the security of BiH and the wider region, including sharing intelligence with law enforcement agencies and intelligence partners on organised crime, international terrorism and illegal migration.

c.            Contact: Ambassador Werner Wnendt, SDHR/G

CORE TASK 4 – DEFENCE REFORM

For peace to be self-sustaining, the country’s defence and intelligence establishments must focus on the interests of BiH as a whole, and not on any one of its parts or peoples.  The BiH authorities have set the objective of joining PfP.  To achieve this, the security sector needs to be restructured on the level of the State, ensuring unified and effective civilian command and control over the armed forces and a single intelligence agency, but also including democratic parliamentary oversight.

4.1         Programme:  State-level command and control

a.            Description: To establish effective civilian command and control and to perform the inherent security functions of a state, BiH must have State-level defence institutions capable of exercising independent command and control over the Armed Forces of BiH (AFBiH).  This is a basic requirement for participation in NATO’s PfP programme.  Strengthening the authority of the Presidency of BiH as the supreme command authority and establishing the BiH Ministry of Defence (MoD), Joint Staff, Operational Command and associated structures are the central components of this programme.  It will be developed and implemented in accordance with legislation enacted following consideration of the Defence Reform Commission (DRC) report by State and entity executive and legislative bodies.  Broad consensus amongst the political parties would provide a lasting basis for security and stability in BiH.

b.            Transition Point: Established and functioning single defence establishment with initial operational capability across the full spectrum of State-level responsibilities and commitments in defence matters, a well as a basic understanding and skills for interoperable information and planning mechanisms according to NATO/PfP standards.

c.            Contact: Major General John Drewienkiewicz, Director, OSCE Department for Security Co-operation (DSC) and Military Adviser to the High Representative

ANNEX: MIP ITEMS COMPLETED IN 2004

CORE TASK 1 – ENTRENCHING THE RULE OF LAW

1.1 Programme: Reform key laws, regulations, and measures

√      Draft legislation on Expert Witnesses for submission to parliaments.

√      Coordinate training of judges, prosecutors, court officials and defence bar on criminal, civil and other laws.

√      Ensure co-ordination and communication between the Implementation Group and those responsible for training of relevant officials.

√      In partnership with group of national experts – CCIAT (Criminal Codes Implementation Assessment Group) – monitor implementation of CPC and CC and make recommendations for improvements

1.2 Programme: Development of an independent and effective judicial and prosecutorial service

√      Draft HJPC law establishing single, state-wide HJPC

√      Lobby for adoption of HJPC law by BiH Parliament.

√      Lobby for approval of agreement by entity governments to confer authority over entity judiciary to a single, state-wide HJPC.

√      Continue to provide assistance to the HJPC related to the reappointment of judges and prosecutors, with emphasis on affirming principle of accountability of judges and prosecutors.

√      Continue to oversee the application of disciplinary measures against judges and prosecutors in violation of professional standards for behaviour of judges and prosecutors.

√      Continue to conduct interviews of qualified applicants for positions as judges and prosecutors.

√      Complete selection process for judges and prosecutors and announce results.

√      Continue investigation of complaints against judges and prosecutors and hand information over to the permanent HJPC/Prosecutor.

√      Ensure complete consolidation of the HJPCs into a single HJPC for BiH and its entities, including adoption and implementation of a law establishing a single, state-wide HJPC.

1.3 Programme: Build State-level criminal justice institutions

√      Ensure through the Criminal Institutions and Prosecutorial Reform Unit (CIPRU) the establishment of the court police to provide protection for BiH judges and prosecutors in the State Court Special Panels and the State Prosecutor’s Office Special Department as required.

√      Develop policy and an implementation plan with the restructured Prosecutors’ Offices for reappointed prosecutors in the entities to specialise in the prosecution of specific areas of crime, including organised crime, economic crime and corruption.  Work with the Prosecutor’s Office of BiH and the Special Organized Crime Department to improve the effective provision of legal assistance by the seventeen newly established entity Prosecutors’ Offices to the Prosecutor of BiH.

√      Provide support to the Special Prosecutor’s Department and Special Panels, including co-ordination with the Court and Prosecutor’s Office of BiH vis-à-vis the administration of the international component of the institutions.

1.4 Programme: Restructuring of courts and prosecutors offices

√      Complete Step Two Court Administration Project and IT Strategy for the judiciary.

√      Complete Step One Project on Restructuring of the Minor Offence Courts.

√      Complete activities related to court budgets and Court and Prosecutor’s Offices funding, including drafting a new law on judicial and prosecutorial salaries.

√      Monitor identification of appropriate court buildings and resources for the restructured courts and prosecutors’ offices in collaboration with entity and cantonal ministries of justice.

√      Continue to provide assistance to reform the internal administration of the Prosecutor’s Office in cooperation with the EC Team of Experts

√      Coordinate with the EC Team of Experts the review of administrative staff and the improvement of human resources’ management in the restructured prosecutors’ offices

1.5 Programme: Anti-crime and corruption assistance

1.6 Programme: Reinforce the rule of law by dislodging obstructionist networks from key institutions

√      Oversee establishment of mechanisms to prevent abuse of office in public companies.

√      Support and cooperate with EUPM on police matters, especially on SIPA/Ministry of Security affairs.  (Item has been moved to Programme 1.8.)

1.7 Programme: Reshape BiH criminal law enforcement landscape

√      Establish Rule of Law (RoL) Project Management Working Group as sole forum for guiding programme to reshape BiH criminal law enforcement landscape.

√      Guide CoM adoption of SIPA legislative package after Rule of Law Task Force produces technically solid draft laws.

√      Ensure SIPA legislative package comes into force.

√      Oversee launching of new SIPA.

CORE TASK 2 – REFORMING THE ECONOMY

2.1 Programme: Create a business environment capable of attracting investment and generating jobs

√      Lobby for the adoption of the OHR-backed version of the RS Law on Notaries.

√      Facilitate the identification and proposal to government of legislative amendments required to the entity Laws on Bankruptcy.

√      Facilitate the adoption of State-level Law on Accounting and Auditing. Support the USAID project to set up relevant State-level institutions and entity-level regulators.

√      Facilitate the adoption of USAID’s new Law on Registered Pledges on Movables and Shares and abolition of the old law.

√      Lobby for adoption of the BiH Procurement Law.

√      Lobby for drafting and adoption of set of phytosanitary and agriculture-related legislation as foreseen in “EC report on reform of Ministries for Agriculture.”

√      Monitor the implementation of the USAID co-ordinated Law on Registered Pledges on Movables and Shares.

√      Oversee adoption of 50 reforms of Phase II of the Bulldozer Initiative.

√      Review assistance of IC Bulldozer staff to the BiH (NGO) Bulldozer Committee, including legal assistance to help remove barriers to investment and growth.

√      Promote adoption of the BiH Law on Finance.

2.2 Programme: Tax Reform – customs reform and indirect tax reform (e.g., repeal of sales taxes and introduction of State-level VAT and direct [profit] tax reform).

√      Monitor direct tax reforms in Brcko and expand such reforms to the entities as appropriate and remove double taxation with regard to direct taxation.

√      Review GTZ Profit Tax Law before it is submitted to both entity governments to ensure that it contains the necessary provisions to prevent the “two country” approach to profit taxes from applying.

√      Assist the ITA with the approval by the Governing Board of its reorganisation plan.

√      Assist the ITA to complete the Governing Board’s review of indirect taxes and the proposal of necessary changes to ensure indirect tax rates and structures are simplified and consistent across BiH.

√      Assist the ITA with the Governing Board’s presentationof the draft law on VAT in compliance with the relevant EC Directive.

2.3 Programme: Internal debt resolution

√      Facilitate the presentation of the final strategy for resolution of the internal debt to the prime ministers and international community.

√      Assist, in co-ordination with the IMF and the entity and BiH prime ministers, in developing a public awareness strategy to explain to BiH citizens the urgency of resolving internal debt.

√      Lobby for adoption of the interim moratorium law at the entity and State levels.

√      Coordinate IC assistance to local authorities to draft legislation to resolve internal debt.

2.4 Programme: Public utilities

√      Lobby for adoption of ISO and Transco laws as integral components of the energy sector restructuring process.

√      Facilitate and lobby for the strengthening of CRA’s financial independence through adoption of the Finance Law.

CORE TASK 3 – INSTITUTIONBUILDING

3.1 Programme: Reform of the Council of Ministers (CoM)

√      Lobby for and monitor the establishment of the Economic Policy Planning Unit of the Council of Ministers.

3.2 Programme: Accountability of elected officials

√      Oversee the establishment of necessary procedures in the Election Commission to implement the Conflict of Interest Law, including: drafting rules and regulations, developing disclosure forms, establishing internal procedures for processing disclosure forms and complaints, and ensuring public access to disclosed information.

3.3 Programme: Reform of public administration

√      Lobbying for funding for public administration reform in the Federation.

√      Monitor the establishment of a centralised civil service training facility.

√      Ensure that the legal status of all categories of employees at the entity level is regulated by law.

√      Oversee the drafting and adoption of a BiH Labour Law and ensure that the law covers the status of all categories of employees at the State level.

3.4 Programme: Consolidating the self-governing status of Brcko District

√      Oversee reorganisation of the Brcko Port as a modern public corporation.

√      As Supervisor, delegate authority over Returns and Reconstruction under the Final Award to the District Government.

√      Through the Brcko Emergency Reform Unit (ERU), oversee implementation of Bulldozer Phase II reforms and prepare for Phase III.

√       Assist in integrating Brcko District Customs into the ITA.

√      As Supervisor, delegate authority over education under the Final Award to the District.

√      Review anti-corruption initiatives in the District and assist the District Government to improve current procedures within the administration.

√      Facilitate the conclusion of an agreement with the entities on integrating the telecommunication systems within the District.

√      Include the District in projects sponsored by the World Bank, in particular related to health care, health insurance, pensions and employment.

√      Draft the legal framework for regulating public administration in Brcko District.

√      Depending on progress on the State level, include Brcko in all reforms undertaken in public administration under the EC project, such as the development of a code of conduct for public employees and auditing and financial accounting reforms.

√      Assist the District Election Commission to resolve outstanding issues between the BiH and District election commissions in the implementation of the District Election Law and Conflict of Interest Law.

√      Complete efforts to maximise voter registration and turnout in the District, especially with regard to eligible persons residing abroad.

√      Complete political party and councillors’ training and oversee their conduct in the pre-election campaign.

√      Complete implementation of the law on local communities.

√      Assist in the establishment of a functioning single District employment office that interacts with the entities’ employment offices.

√       Oversee the conduct of elections for the Brcko District Assembly and implementation of election results to establish the first elected Brcko DistrictAssembly and Government.

√      Assist in the restoration of navigation on the Sava River through support for implementation of the Treaty and Navigation Protocol and through support for the Stability Pact and the four countries’ Action Plan.

3.5 Programme: Promoting regional stability and co-operation

3.6 Programme: Reform of Mostar

√      Oversee and lobby for the adoption of all legislation and legal actions emerging from the Commission for Reforming the City of Mostar.

√      Monitor the implementation of the October elections for the City of Mostar.

3.7 Programme: Municipal reform

√      Oversee the process of creation of a constituency for municipal reform (including local mayors) and ensure coordination with PAR Working Group 5 (WG5).

√      Assist PAR WG5 to formulate reform proposals and enhance activities through secretariats, including local mayors (permanent) and IC representatives (ad hoc).

√      Coordinate activities of international organisations engaged in municipal reform and identify IOs and NGOs with activities of a specific secretariat.

√      Review legislation, including in sessions of PAR WG5, regulating the use of construction land, concessions and other related issues at municipal level.

√      Review municipal acts regulating the status of municipal officials (civil servants) in FBiH to ensure they are consistent with provisions of the FBiH Law on Civil Service.

3.8 Programme: Refugee Return (Annex VII Verification Unit)

√      Continue to ensure domestic resources are provided by all levels of government for fulfilment of Annex VII obligations through budgetary guidance.

√      Establish the necessary legal framework and build domestic institutional capacity through OHR interventions and donor-supported initiatives so that responsibility for maintaining and updating CRPC and other databases and, in general, overseeing property law implementation countrywide can be transferred to a domestic institution, under the primary guidance of the State Ministries for Human Rights and Refugees and of Justice.  Main actions: 

  • Transfer of CRPC competences to domestic institutions.
  • Transfer of CRPC database and training MHRR staff to operate it.
  • Transfer of CRPC documentation and cadastral records to BiH Archives and Geodetic Administrations of both entities.
  • Transfer of CRPC competences to review CRPC claims, with an agreement in principle reached with the Ministry of Justice and dependent on signing of the abovementioned agreements.

√      Conduct information campaigns to support implementation of property laws, reconstruction and sustainability of returns in the Banja Luka region.

√      Conduct information campaigns to facilitate the commercialisation of agricultural production of farmers/returnees.

√      Develop capacity of domestic civil society organisations to monitor sustainability of returns through donor-supported projects.  (OHR has a supporting role in this UNDP-led SUTRA programme.)

√      Be available to assist the MHRR, if necessary, in developing and sustaining the newly established institutions, including the Return Fund, MHRR’s regional centres and the strengthened State Commission of Refuge.

√      Act as specialist advice unit to the High Representative on all matters related to Annex VII and recommend interventions as required.

√      Transfer the RRTF-Housing Verification & Monitoring (HVM) databases to the MHRR once data protection and database maintenance mechanisms are in place.

3.9 Programme: Reform of the Public Broadcasting System

√      Monitor and observe the establishment of BHTV1 at the State level.

3.10 Programme: Intelligence Reform – establishing the Intelligence and Security Agency

√      Assist the Chairman of the Expert Commission on Intelligence Reform to oversee the completion of the Commission’s work.

√      Lobby for the adoption – without counterproductive amendments – of the Law on the Intelligence and Security Agency by the Parliamentary Assembly.

√      Oversee drafting plans to establish the Intelligence and Security Agency (OSA).

CORE TASK 4 – DEFENCE REFORM

4.1 Programme: State-level command and control

√      Oversee an increase in the responsibility of the SCMM Secretariat/BiH MoD in implementing SFOR’s Instructions to the Parties.

√      Oversee and support progress in developing and implementing State-level defence structures in accordance with legislation/regulations proposed by the DRC report.

√      Oversee and support full recruitment of the SCMM Secretariat as basis of the BiH MoD.

√      Oversee and support the preparation and adoption of Budgets and Books of Rules covering organisational, procedural and funding matters for both the BiH MoD and Joint Staff.

√      Oversee and support the drafting and adoption of new Terms of Reference for the SCMM regulating its revised roles as an advisory body of the BiH Presidency.

√      Coordinate and support the preparation, establishment, training and deployment of a BiH PSO Unit in accordance with the direction of the BiH Presidency.

√      Oversee and support the development and adoption of Books of Rules on organisational, procedural and funding matters for the Operational Command.

√      Fully hand over remaining tasks to the OSCE and DSC, with ongoing lobbying as required by OHR on the following items:

  • Coordination of international programmes to strengthen State-level defence structures (e.g. U.S.-funded programmes such as MPRI or the Joint Contact Team Program, or other national initiatives) through the Defence and Security Steering Group (DSSG).
  • Support development of an enhanced State-level defence budgeting process.
  • Support the full establishment of the BiH MoD and Joint Staff to reach full operational capability, including the development of plans for potential new premises for the collocation of expanded staff and support services. 
  • Coordination and support for training of members of State-level defence structures in order to reach full operational and sustainable capability.
  • Support for the development of a State-level defence budgeting process, in accordance with the recommendations of the DRC report.
  • Support for the build-up of the Operational Command.
  • Coordination and support for training of members of State-level defence structures in order to reach full operational and sustainable capability.