Office of the High Representative OBN Update

IFJ
Media for Democracy Unit
Director: Bettina Peters
International Federation of Journalists
266 Rue Royale
1210 Brussels
Tel: (32)-2-223 22 65
Fax: (32)-2-219 29 76
ifj.projects@pophost.eunet.be

Open Broadcast Network

Final Auditors Report
Phase II

submitted to the Governing Council Meeting, Brussels, March 19th, 1998

Executive Summary

The governments of Canada, Denmark, Germany, Ireland, Japan, Luxembourg, Norway, Sweden, the United Kingdom, the United States of America as well as the European Commission, the OSCE and the OHR pledged support to the second phase of the Open Broadcast Network (OBN) in Bosnia-Herzegovina. These governments and institutions were represented on the Governing Council of OBN which was established on July 19, 1996.

Contributions to the OBN were made in three forms:

  • financial/cash contributions;
  • in kind contributions/purchase of equipment;
  • donations of programmes.

The IFJ was responsible for the supervision and control of cash contributions received at the IFJ account. These are accounted for in the attached financial and auditors report.

The table on the following page shows which funds were pledged by each government in March 1997 and which funds had been received by November 30th, 1997. The governments of Germany and Japan pledged in kind contributions for the purchase of equipment as indicated in the table. These contributions thus do not form part of the auditors report.

In addition, the governments of Japan, the United Kingdom and the United States made considerable donations of programmes which formed a an important part of the OBNıs programme schedule.

Table: List of Pledges and Funds Received

Donor Amount Pledged Received/date Outstanding/Remarks
Canada 250,000 US$ 250,000 US$
on 09/04/97		 no remarks
Denmark 100,000 US$ 100,000 US$
on 24/03/97		 no remarks
Germany 500,000 DEM see remarks in kind contribution for equipment, procurement by GTZ, delivered to Sarajevo
Ireland 25,000 IEP 25/04/97 no remarks
Japan 700,000 US$ see remarks contribution subject to installation of Phase I transmitter, in kind contribution for equipment, procurement by UNDP, on-going
Luxembourg 100,000 US$ 100,000 US$
on 03/07/97		 no remarks
Norway 200,000 US$ 200,000 US$
on 16/04/97		 no remarks
Sweden 7,000,000 SEK 6,500,000 SEK
on 02/04 and 22/10/97		 500,000 SEK outstanding subject to establishment of trust
United Kingdom 130,000 GBP 130,000 GBP
on 28/02 and 31/10/97		 no remarks
United States of America 1,085,000 US$ 1,085,000
on 25/08/97		 no remarks
European Commission 1,700,000 ECU 680,000 ECU
on 14/11/97		 outstanding 1,020,000 US$
OSCE 48,000 DEM 48,000 DEM
on 01/04/97		 received directly at OBN Sarajevo
OHR support in kind

The OBN, which started broadcasting on September 7, 1996 was created in the context of support for pluralist democracy, dedicated to freedom of expression and independent journalism, and providing programming of an entertaining, educational and pluralist nature at cross-entity level accessible to all citizens of Bosnia-Herzegovina.

The OBN was set up in the summer of 1996, building on five existing independent TV companies. A central hub was established in Sarajevo and the network was joined soon afterwards by a group of journalists in Banja Luka which developed into the affiliate station ATV. The central hub in Sarajevo has been built up to give the network a clearer identity and the contribution were essential in securing the functioning of the hub in what is effectively the first operational year of the Open Broadcast Network.

Reporting Procedures

The IFJ prepared regular financial reports for Governing Council and Steering Committee meetings. These reports provided an overview of income and expenditure concerning all donors to the project. Reports were submitted to the representatives of each of the donors at Governing Council meetings. In the period March - November 1997 the IFJ prepared eight financial reports including the auditors report.

The IFJ hired a consultant - Mr. Roland Axelsson of Sweden who has some 20 years experience of evaluating project administration - to prepare certain administrative rules for the project. A copy of the rules adopted by the Governing Council are attached.

Transfer of funds was subject to financial reports on expenditure to be provided by the International Project Manager for OBN generally and by Alberto Hersckovits as the international consultant for ATV Banja Luka for the period March -- August. From August until November reports were prepared directly by the ATV accounting staff.

Organisational Issues

Three aspects of the project were slow in developing and thus posed problems to the further development and consolidation of OBN.

First, for various reasons the funding from donor sources has been slow in arriving to the International Federation of Journalists fund holding account in Brussels. As a result several project items scheduled to take place were not completed in the time lines originally envisaged. In fact, at the end of Phase Two on November 30th, 1997 some donations were still outstanding. However, the overall project has stabilised and the programming output has become by and large acceptable to the viewing audience.

Secondly, the legalisation of OBN as a Bosnian company and the legalisation of ATV took longer than planned. With the assistance of the International Project Manager Mike Challenger and the OHR it was possible to receive registration for ATV Banja Luka from the RS authorities. It was further possible to negotiate expanded frequencies for ATV Banja Luka to assist in their further development.

Registration of OBN generally still poses problems. It proved extremely difficult to find individuals with whom to establish a company in charge of local management of OBN. Further, a sensible and functioning Bosnian company in charge of the overall development of OBN needs the establishment of an international trust to hold the assets of OBN and to promote and manage its affairs at international level. This was decided by the Governing Council in June 1997 but the establishment of such a charitable international trust requires a lengthy procedure which continues to date.

As a result, OBN does not have a bank account and transfer of funds from Brussels to the OBN in Sarajevo had to be made in cash. The IFJ and the International Project Manager as well as the consultant and the auditors have raised this issue, urging the Governing Council to speed up the process of establishing a trust so that cash transfer can be avoided in the future. Once ATV had been registered a bank account was opened and funds were transferred directly from Brussels to Banja Luka for ATV operational expenditure.

Thirdly, the problem of identifying, employing and paying key OBN Executive Officers remains a problem. Canvassing for Bosnian managers was not successful. In line with Governing Council decisions, the financial and technical operation of OBN in Sarajevo continues to be run by the International Project Manager. While a candidate for CEO of the International Trading Company and Trust had been identified no agreement could be reached on the contractual arrangements.

Given the difficult financial situation created through the dependency on donor contributions without clear commitments on when funds will be received, it remains difficult to employ high-level and competent international project managers and executive officers. The project is indebted to those persons who have committed considerable time and effort to its development, often in precarious employment conditions.

OBN Development in Phase Two

Audience acceptance increased throughout Phase Two of the project. Media Plan carried out audience surveys (not systematic) on behalf of the OHR and the OSCE and found that - in spite of allegations that few people watch OBN - the programme was fairly well known in those parts of Bosnia-Herzegovina were it could be received. This was further illustrated by responses to a weekly phone-in programme "Telering" produced by the OBN hub in Sarajevo which sometimes had several thousand callers from all over Bosnia-Herzegovina including the RS.

The need for the project now is to improve and further develop the technical facilities of the production and transmission aspects of the operations and to expand the footprint of the OBN to a wider audience throughout Bosnia and Herzegovina, with particular increases in the areas of the Republic of Srpska.

Specific Developments Planned

  • Installation of a 10kW transmitter on Mt. Vlasic (almost completed);
  • Provision of Production Studio facility for Banja Luka (commissioned, not started for lack of funds);
  • Provision of transmitter mast and 1kW transmitter for Banja Luka (completed);
  • Provision of satellite up-link for Banja Luka (completed);
  • Open OBN production and transmission operation in Brcko (completed);
  • Installation of transmitter mast and 1 kW transmitter for Zenica
  • Develop Gorazde as an affiliate and up-grade transmission facility
  • Re-locate the Sarajevo 1kW transmission facilities
  • Locating of a 1kW transmitter on Trebivic, Nr. Sarajevo (almost completed).

Coverage of the Municipal Elections September 1997

Coverage of the September municipal elections was based on the Editorial Charter and the Election Coverage Guidelines which were adopted by the Governing Council in July 1996.

The central studio in Sarajevo had a special team for the election, although there were only a total of 35 employees, of which 12 were journalists. About 1/6 of the total programming was dedicated to the election campaign.

Three times per day OBN broadcast a regular programme, Candidates Speak, lasting 3 minutes. In it, candidates were asked their views on how refugees may return to their homes, how they imagine a post-Dayton Bosnia and their broader message to the electorate.

Every Monday they broadcast a 45 minute programme called Electoral Chronicle with a survey of the activities of the political parties in the previous week. In each of these programmes a representative of the OSCE was present to explain the voting procedures. OBN, like most other media, broadcast the OSCE video spots for free. In addition, each evening around 9 p.m. they broadcast a reportage of 20-25 minutes on the Dayton Agreement and its aftermath.

They visited all regions, cantons and municipalities (frequently meeting economists rather than politicians), reporting on the work of the ruling party in each area (new construction, rebuilding, the numbers and ethnicity of returned refugees, aid to war invalids, unemployment, problems of pensioners -- all in the aftermath of Dayton.

Together with the Serb Civic Council of BiH and the Helsinki Committee for Human Rights in BiH, OBN also produced 5 documentaries on human rights in BiH. They dealt with freedom of movement, the return of refugees, and the right to private property, following the Dayton Agreement.

OBN Television also broadcast a talk show called Telering in which 4-5 candidates appeared at the same time. They managed to cover all of the bigger political parties, although the main Muslim Bosniak leaders, President Alija Izetbegovic (SDA) and Haris Silajdzic, the popular leader of the so-called Party for BiH (Stranka za BiH) did not appear.

OBN broadcast all the OSCE materials for voter education. Journalists working for OBN did not complain about undue pressure from the authorities.

In addition to the six hours joint programming, affiliates of OBN from Mostar, Tuzla and Zenica produced their own local election coverage programming focusing on candidates in their municipality.

OBN used the independent Croatian news agency STINA, from Split, the Alternative Information Network, the state news agency BH Press, and the independent ONASA agency created by the newspaper Oslobodjenje.

Office of the High Representative