III. COORDINATION OF CIVILIAN IMPLEMENTATION
Overall coordination
- I have continued extensive consultations with representatives of
governments and organisations at different levels. On 11 May, I met senior
UN officials in New York and on the same day reported to the members of the
Security Council on progress in peace implementation. I have also had
meetings with the Secretary General of NATO.
- Regular discussions with the Principals in Sarajevo have been
maintained. These consultations, with participation of the Special
Representative of the UN Secretary General, the UN IPTF Commissioner, the
UNHCR Special Envoy, COMSFOR and the OSCE Head of Mission, continue to be
very useful and I intend to maintain them.
- The Economic Task Force (ETF), which meets under my chairmanship,
remains the main body for co-ordinating economic reform policies and
international reconstruction assistance. The ETF brings together key donors
in the international community and from my Office to discuss economic policy
issues in a timely and coordinated fashion.
- The Refugee Return Task Force (RRTF) structure requested by the Bonn
PIC is now fully operational. A Central Secretariat has been established,
and a further local office was opened in Derventa on 26 June. The RRTF's
Action Plan was endorsed by the Donor Conference held in Brussels on 7/8
May. Following the Ministerial meeting in Luxembourg on 9 June the RRTF has
been required to strengthen its links with neighbouring countries in the
region. An initial planning meeting with representatives of UNHCR and OSCE
from Bosnia and Herzegovina and Croatia was held in Sarajevo on 16 June.
- Cooperation with, and coordination of international organizations has
been greatly enhanced by the creation of the Inter Agency Planning Group,
chaired by a senior representative of my Office. This body, by bringing
together military and civilian organizations on a weekly basis, has allowed
rapid and responsive planning to take place in a rapidly changing
environment. The active involvement of SFOR in this group has ensured
that the political/military cooperation on which successful implementation
depends has been further strengthened.
- The members of the Human Rights Task Force have continued to work to
address the priorities set for 1998, both individually and through the work
of the Human Rights Coordination Center and its Steering Board.
Common institutions of Bosnia and Herzegovina
- The Presidency, the Council of Ministers and the Parliamentary Assembly
have continued to meet regularly in the last months. Although the efficiency
of their work continues to be hampered by insufficient political cooperation
among the officials, there has been progress in institution - building.
- On 12 June, the former Parliament Building in Sarajevo, partially
renovated with financial contributions from the European Commission and the
World Bank, was officially opened as the seat of the common institutions.
The common services of the Council of Ministers moved into the building
which should house, after the September elections, the plenary meetings of
the common institutions and part of their administrations.
- In the reporting period, the Presidency held few working sessions, but
met frequently with high-ranking international delegations. Decisions of
note were the approval of the proposal by my Office to establish a permanent
location for common institutions at the former Parliament Building in
Sarajevo (24 April ) and the liquidation of the National Bank of Bosnia and
Herzegovina (28 May ).
- The Council of Ministers meetings during this period have been
increasingly focused and professional. The main overall emphasis was on the
continued implementation of the Council of Ministers Law, through proper
staffing and establishment of the Ministries consistent with their new
organizational plans. The Council has benefited greatly from the assistance
of its new International Coordinator, who has worked closely with the Chairs
to rationalize procedures, hire staff, and finalize the move of the
Council's Services into their new offices. As these improvements proceed,
the Council's effectiveness and efficiency should also increase. Other
important issues dealt with by the Council are the implementation of the Law
on Travel Documents and the adoption of the draft Law on Privatization.
- At its eighth session on 27 April, the Parliamentary Assembly adopted
the State Budget for 1998 and established a Commission to investigate Inter
- Entity Crime and Corruption. At its ninth session on 18 May, the Assembly
adopted the Law on Foreign Investments which I had previously put into force
on an interim basis.
- It failed, however, to adopt the law on the Coat of Arms of Bosnia and
Herzegovina. As a consequence, I decided to enforce the Law on Coat of Arms
on an interim basis. The new Coat of Arms follows the design of the flag.
- In its session held on 5 June 1998 the Constitutional Court laid down
two decisions in respect of appeals in cases decided by the Human Rights
Chamber of Bosnia and Herzegovina and a decision on the right of one of the
Co-Chairs of the BiH-Council of Ministers to initiate proceedings before the
court. The judges are working with efficiency and professionalism. They
agreed by consensus to extend the mandate of the first President of the
Court in order to continue the process of bringing the Court to full
operational capacity. A serious obstacle, however, is the failure of the
BiH-authorities to make adequate resources available to the Court. The next
session will be held on 14 October, 1998.
- Since my last report, the Standing Committee for Military Matters (SCMM)
has held its sixth and seventh sessions. Progress has been made on a
proposal to allow cross-IEBL helicopter flights for VIPs and the Secretariat
has worked up a new six month program for approval at the next meeting.
Regrettably the issue of Defense Attaches has had to be passed to the
Presidency after an agreed compromise was derailed by Bosniac withdrawal of
consent. Within the Secretariat itself, considerable progress has been made
towards self-sufficiency, with the chair being handed from my SCMM
Coordinator to the advisor of the presiding Member of the Presidency. Also,
pending the move of the institutions to the former Parliament Building,
Secretariat meetings have moved from the neutral ground of my offices to
other locations in BH. So far meetings have been held in Pale, Novi Travnik
and Tuzla, and have all been characterized by a positive and businesslike
atmosphere.
Essential legislation
- My Office is now preparing a list of basic legislation, which will help
entrench the rule of law, as envisaged in paragraph 109 of the Luxembourg
Conclusions.
- The work on drafting laws on various subjects is proceeding well. A
draft Telecommunications Law was agreed upon and the draft signed by all
participants, representing both the state and the Entities and all
constituent peoples, at a workshop held in Geneva in early July, sponsored
by the ITU, EBRD and my Office. The draft will be forwarded to the Council
of Ministers very soon. The draft Immigration Law is also ready, and has
been discussed with the Ministers concerned. This draft will be sent to the
Council of Ministers very shortly. The Aviation Act is very near completion.
As for citizenship legislation, the Citizenship Law of the Federation of
Bosnia and Herzegovina has been discussed at several meetings and a draft is
completed. We hope to start work soon together with the Council of Europe to
assist Republika Srpska to develop their citizenship law.
- My Office is studying with experts of the Venice Commission different
aspects of the constitutional provisions in respect of the election of the
presidencies in Bosnia and Herzegovina as well as in the Federation of
Bosnia and Herzegovina, which will be an essential part of the permanent
electoral law. A working group including domestic and international experts
shall then draft the final version on the basis of the proposal from my
Office.
- An Independent Media Commission (IMC) was established, continuing our
efforts to ensure the principles of objectivity, transparency,
non-discrimination and proportionality in the media.
- The role of the IMC is to establish a regulatory regime for broadcasters
and other media in Bosnia and Herzegovina. The IMC will work to promote
pluralism in the media and to ensure that broadcast licenses are issued and
regulated without political interference.
- My Office , together with experts from the UN and experts appointed by
the Council of Europe, have assisted working groups in both Entities to draw
up a Criminal Code and Criminal Law Codes which are in conformity with the
European Convention of Human Rights. In the Federation Codes are currently
before the House of Peoples, while the Republika Srpska-codes should be
submitted to the National Assembly by the end of summer.
- Currently the Rector's Conference of Bosnia and Herzegovina is the only
coordination structure for higher education in the country. It aims to
represent all universities in the country. My Office encourages the
Conference to become fully operational.
- My Office is continuing its efforts to coordinate the drafting of
different commercial and capital market laws by USAID and experts of the
European Union. Several laws have been presented by USAID to the Federation
Government and are now being considered for adoption.
- Due to the on-going efforts of my Office an important Memorandum of
Understanding concerning Water Issues was signed on 2 June and the Entities
have formed a Joint Commission for Water Management. Since last year, my
Office has brought the Entity ministers responsible for the environment
together for discussions and on 14 July, my Office concluded a Memorandum of
Understanding on Environmental Matters between the Entities.
Special parallel relationships and succession issues
- Bosnia and Herzegovina and the Republic of Croatia concluded an
Agreement on Establishment of an Inter-State Council for Cooperation on 30
March 1998. This agreement shall supersede the Agreement on the
Establishment of the Council for Joint Cooperation between the Republic of
Bosnia and Herzegovina, the Federation of Bosnia and Herzegovina and the
Republic of Croatia of 14 December 1995.
- My Office was informed recently about a proposal for an Agreement on
Special Parallel Relations between the Federation of Bosnia and Herzegovina
and the Republic of Croatia. Such an agreement is in certain respects
inconsistent with the Constitution of Bosnia and Herzegovina and the
division of competencies between the common institutions and the Entities.
The parties involved have been informed accordingly. My Office is monitoring
the situation closely.
- Discussions on the compromise mini-agreement package on succession
issues put forward by the Special Negotiator at the end of March failed to
lead to any consensus: four delegations accepted the package but one (FRY)
had substantial objections to it. Only very limited progress has been made
regarding effective access to records and data relevant to succession
issues, although the FRY has decided in principle to make certain documents
available.
- In its Declaration of 9 June 1998, the Ministerial Meeting of the
Steering Board of the PIC noted with concern the lack of progress in
arriving at a consensus on substantive issues of succession. It stated that
these negotiations cannot continue indefinitely. It supported my
recommendations for a pause in the negotiations until the end of September
to be followed by a further negotiating session on the basis of the draft
Framework Agreement of 13 November 1997, should appropriate conditions
exist. After that session, the Steering Board will, if necessary, revisit
the question including the option of referring key outstanding issues to
arbitration. In addition, consideration may be given to pursuing steps to
distribute relevant assets held abroad.
- On access to records, the Steering Board renewed its request made by the
(Bonn) PIC and stressed the importance of full compliance with it, and
without delay. Such a move would enable negotiations on the draft Framework
Agreement to proceed effectively and on an equal footing.
Brcko Dispute
- 40. In accordance with the Supplemental Award of 15 March 1998, the
Supervisor of Brcko and his staff have pursued a vigorous policy of
implementation. Both Entities improved in their cooperation with the
Supervisor, though major responsibility for implementation lies with the
Republika Srpska. Security conditions for return have been generally
satisfactory - no major incidents on inter-ethnic grounds occurred during
the reporting period.
- Freedom of movement, both in the Zone of Separation (ZOS) and through
and within the Brcko city limits for vehicles other than Serb-Entity
registration, is steadily improving.
- The return of displaced persons (DPs) and refugees is now taking place
in a greater number of areas, including Brcko proper. To date 2,998
applications for return (approximately 12,000 persons) have been approved
and more than 1,072 Bosniac and Croat families (an estimated 4,000 persons)
have returned.
- The problem of dealing with DPs occupying returnees' houses has grown.
The tempo of returns from the Federation to the Brcko area could be higher
if Serb DPs in Brcko, now living in abandoned Bosniac and Croat houses, were
willing to contemplate return to the Federation, where an appropriate
security environment, jobs, and other social benefits in the Federation
would be made available . Along with some artificial bureaucratic
impediments, the Federation requirement that Serb DPs produce a
certification as "to where they have been since 1991" does nothing to reduce
anxiety among Serb DPs contemplating returning to the Federation.
- The multi-ethnic administration, judiciary and police were fully staffed
by the end of June and are now operational - in accordance with the
Supervisor's orders. All three ethnic groups appear to work satisfactorily
together, especially in the police and judiciary. The multi-ethnic police
expanded their operation to include mobile and static multi-ethnic patrols,
both in the ZOS area and in Brcko proper. Two major problems remain to be
resolved: lack of essential equipment, such as radios and weapons; and the
sizable disparity between Serb policemen's salaries (very low) and the
original salaries of the other two ethnic groups carrying out the same jobs
in the Federation.
- The revitalization of Brcko's economy envisaged both in the first
Arbitral Award and in the Supplemental Award is directly related to a
peaceful return process and progress in enhancing democratic institutions in
Brcko: multi-ethnic administration, judiciary and police and other
establishments, financed by the Brcko Municipality budget. To make this
happen a certain number of Serb employees had to be laid off in order to
employ Bosniacs and Croats. There are no alternative jobs for those laid
off. Returnees, steadily increasing in numbers, also have no job
opportunities. All this may contribute negatively to the stability and
peace between the three ethnic communities and should be addressed through
improving their economic outlook.
- Although my Brcko office and other international organizations in Brcko
are achieving steady progress in reconstruction of the municipal
infrastructure, housing reconstruction, and micro projects (including small
business promotion), Brcko's economy remains stagnant and lacks substantial
employment opportunities. Brcko is in critical need of employment
opportunities to support the multi-ethnic administration and returnees and
to deter the potential for social unrest.
- In order to make significant headway toward revitalization of the
economy before the final arbitral proceedings begin at the end of 1998, a
special economic zone and a privatization process must be established. For
this to happen, increased and steady support of the international donor
community will be necessary.
Joint commissions
- The activities of the Provisional Election Commission (Annex 3), chaired
by the OSCE, are referred to in the elections sections of this report.
- At the 8th and 9th sessions of the Commission to Preserve National
Monuments in Bosnia and Herzegovina, held respectively on 8-9 May in Paris,
and on 29 June in Mostar, the list of monuments was extended to 110, and the
Commission examined a preliminary report on legislation prepared by UNESCO,
with a view to providing Bosnia and Herzegovina with the necessary legal
apparatus to protect its cultural heritage. Moreover, at the June session
the Commission drafted a letter to the competent authorities in both
entities requesting that they take the necessary steps to protect the sites
of monuments which have been totally destroyed, and inform the Commission of
the measures taken.
Federation Issues
- My Office continued to focus its attention on Federation issues. A
meeting of the Federation Forum was held in Mostar on 16 April. Agreements
were reached on a wide range of issues including Mostar returns, the
continuing dissolution of parallel structures and separate financial
channels as well as initiation of the second phase of municipal reform. My
Office continues to follow up the implementation of these agreements.
- As a result of the Federation Forum, Governors and Vice-Governors of the
Central Bosnia and Herzegovina-Neretva Cantons have successfully paid joint
visits to the municipalities in their Cantons to accelerate the merging of
parallel municipal administrations with specific attention to the continued
existence of parallel structures, full functioning of joint municipal
administrations and implementation of Canton return plans. Results are,
however, still limited.
- An Inter-Ministerial Commission has been established to begin the second
phase of municipal re-organization, consisting of representatives of the
competent Federation Ministries, as well as the Council of Europe and my
Office. This Commission held its first meeting on 25 June and will continue,
with the aim of concluding its work by 31 December 1998.
- The most numerous minority return movement of the first months of 1998
was to Drvar. These returns were, however, accompanied by an increasing
number of house burnings and security incidents, including the murder of two
elderly Serbs on 15 April. In light of the continued failure of local
authorities to provide sufficient security in the municipality, the Deputy
Mayor of Drvar and the Chief of Police were removed from office.
- During an organized riot on 24 April, the Drvar municipal offices were
attacked, and the Serb Mayor attacked and wounded. Some houses as well as
the local offices of my Office, the UN IPTF, UNHCR and OSCE were also
attacked and severely damaged by fire.
- My Office, in close co-ordination with all the major implementation
agencies, took measures to assert the international presence in Drvar, to
re-establish a secure environment, to initiate investigations to identify
the perpetrators and to make it possible for the return process could
resume. I have appointed a Resident Envoy to monitor and help stabilize the
situation in Drvar.
Republika Srpska
- The period between April and June saw a consolidation of the position of
the new RS government, and the strengthening of the political parties
forming the government coalition, at the expense of the previously ruling
hard-line parties. The Government strengthened its control over the police,
as well as the military, the judiciary and the customs authorities.
- The RS National Assembly passed some essential legislation required by
the Peace Agreement. The Government coalition managed to block any attempt
by the SDS led-opposition to derail progress. In June, it voted to remove
the representatives of the SDS and SRS from their positions as President and
Vice-President of the Assembly, which they had used to obstruct the passage
of essential legislation, and replaced them with representatives from a
moderate RS party and a Bosniac from the Federation-based Coalition
respectively. For the first time in post - war BH, there is now a Bosniac
Vice-Speaker of the RS Assembly.
- In June, the three Serb Government parties formed the Sloga coalition.
They are confident that they will strengthen their position in the upcoming
September elections and thus create conditions for a further progress in
peace implementation in the RS.
- I am, however, concerned that the RS Prime Minister and the RS President
should live up to the promises which they have made. Minority return into RS
municipalities remains negligible, mainly due to the fact that many
municipalities are still dominated by the old nationalistic forces of the
SDS. However, the RS Government failed to honor its political commitment as
regards the adoption of the so-called property laws, which are the basis for
refugee return, as well as to make progress on the envisaged restructuring
of the police forces.
Elections
- Since my last report, the regulatory work of the Provisional Election
Commission for the 1998 general elections has been almost completed, except
for the sections on voting and counting. In addition to the changes I
mentioned in my last report, the Provisional Election Commission has reduced
the term of office to two years for all levels of government, except for the
Bosnia and Herzegovina Presidency, which is regulated in the Bosnia and
Herzegovina Constitution. The Chair of the Presidency will rotate every
eight months. According to the new rules at least one third of the first ten
candidates on a political party or coalition list must be women; candidates
are obliged publicly to disclose their own and their family's financial
assets; and paid media advertising is prohibited.
- The voter registration period has closed, as has the period for the
registration of political parties, the forming of coalitions and alliances
as well as the submission of candidate lists. In order to reflect the
rapidly changing political landscape the Provisional Election Commission
extended the period for the registration of parties separating from already
existing parties until 1 July 1998. The New Croat Initiative (NHI), headed
by the Croat Member of the Presidency, has applied to register as a party.
- In addition to preparations for the 1998 elections, monitoring of the
implementation of the 1997 municipal elections results continues. In June,
the Provisional Election Commission extended the period to revoke Final
Certification until the next municipal elections are held in September 1999.
This measure will help to apply pressure to ensure that municipal
councils/assemblies function efficiently and the voluntary return of
displaced municipal officials to the municipalities takes place.
Media
- For the past three months my media strategy has continued to be based on
a three-pillared approach, namely (1) re-structuring of the media
environment and the creation of a regulatory framework, (2) support to the
independent media and provision of alternative sources of information, and
(3) a public service information campaign designed to break the control of
the government and political parties of the media environment. We are now
making progress in our primary objective of redressing the balance of access
to objective information, and along with the OSCE have agreed strict
guidelines for fair and equitable access to the media in the pre-election
period.
- First Pillar As regards the re-structuring and regulation pillar of my
strategy, the restructuring process at Srpska Radio Televizija (SRT) has
provided for more balanced reporting of events in the Serb Entity. The new
Board of Governors led by the International Administrator continues to
function effectively. Since the appointment of the administrator, the
evening news program no longer airs inflammatory political commentaries.
However, the restructuring process at SRT has been hampered by a lack of
financial and technical resources and I urge donor governments not to
neglect this important technical part of the restructuring process.
- Due to the improvement in the political climate and the success of the
restructuring effort, SFOR troops have withdrawn from all but two of the SRT
tower sites which were taken over last year, and early withdrawal from
remaining towers is envisaged.
- The reform of RTV BiH has been the main media restructuring activity of
the reporting period. The aim of this reform has been to protect the
television from direct political control and to enfranchise the main
communities of the Federation and the whole of Bosnia and Herzegovina in
accordance with the Dayton Peace Agreement. Two of the three members of the
collective Presidency, Alija Izetbegovic and Kresimir Zubak, signed a
Memorandum of Understanding undertaking to support a reorganization of RTV
BiH. The leadership of the Trade Union of RTV BiH also signed the
Memorandum. The MOU calls for the establishment of a public broadcasting
corporation reflecting the constitutional structure of BiH. Until the
corporation is established, an interim Board of Governors and an
international administrator will begin restructuring the television network.
The High Representative will ratify the Board of Governors and appoint an
international administrator.
- The Independent Media Commission (IMC) was officially established on 11
June by a Decision of the High Representative. The IMC was formed in
accordance with Annex 10 of the GFAP and in accordance with the Bonn PIC
Conclusions. The Decision sets out the authority of the IMC to assign
broadcast frequencies across BiH, issue broadcast licenses and to enact a
press code for print media. As part of the Decision, a moratorium on new
licenses was declared to allow for the IMC to assess the current state of
affairs in the broadcasting sphere.
- The aim of the IMC is to ensure that all broadcasters and media outlets
in the country conform to a set of minimum standards based on Western
democratic principles and law. After a transparent recruitment process, a
Director General was selected as well as other experts to lead the
departments. The IMC has held press conferences to explain its work and
continues to consult with broadcasters about the details of a code of
practice, which is expected to be released on 1 August.
- Second Pillar My Office has, over the reporting period, put in place a
procedure for the systematic assessment of existing and new independent
media, with a view to ensuring a fair distribution of international support.
My Office has tried to direct assistance to areas which lack alternatives
sources of information, apart from those controlled by local authorities.
This strategy would benefit greatly from better coordination among donor
governments on projects being selected for financial assistance among the
independent media. My Office will work to promote that in the coming months.
- The most ambitious independent media project supported by the
international community over the period, in line with objectives set out in
previous reports, was the television channel the Open Broadcast Network
(OBN). Due to phased donations by the international community of financing
and programming, the channel has now established a firm foothold on the BiH
media scene. This is confirmed by independent polling and research.
Unpredictability of funding has been partially overcome in the reporting
period, enabling the channel to set a firm and coherent programming and news
schedule, at least until the end of this year. The OBN has also made
significant progress in increasing marketing revenue, and is now firmly on
the way to becoming a fully-fledged commercial channel. The OBN's commercial
viability will, however, remain linked to the economic development in BiH as
a whole and its long-term sustainability will depend on achieving a balance
between a gradual phasing out of international donations and targeted
commercial revenue.
- Third Pillar The Public Service Information Campaign (PSIC), which
makes up the third pillar of my strategy, aims to provide clear, unbiased
information, via commissioned programming and advertisements, on a series of
themes. The issues treated in the PSIC underpin the main areas of work
undertaken in the civilian area in support of the Peace Process. The
messages have been designed by programming professionals to be clear and
accessible to the public. Both the advertising and programming strands of
the campaign are now partially completed, and are being broadcast by all
media in the country. New advertisements and programs, pursuing the themes
already developed, will continue to appear.
Return of Refugees and displaced persons
- Returns have been slower than expected in the first half of 1998. The
UNHCR had set a target figure of 50,000 minority returns for the first six
months of the year. The actual figure is closer to 11 -15,000.
- As outlined in the RRTF Action Plan, the primary obstacles to return
remain a lack of political will on the part of the authorities, the absence
of a sense of personal security for minority returnees, housing shortages, a
general lack of employment opportunities, and legal and administrative
problems.
- The Banja Luka Conference on Regional Return marked the first in a
series of steps to promote regional return. The Conference set out the
requirements for accelerated return between from Croatia and Bosnia and
Herzegovina and from FR Yugoslavia to each of these two countries. The
emphasis was on the adoption of concrete return plans and the implementation
of appropriate legislative, administrative, and social frameworks.
- Croatia's adoption of a new return programme on 26 June 1998 marked a
further step towards the realisation of regional return. While failing to
address all the issues raised at the Banja Luka Conference, the Croatian
return programme is promising and may yield significant returns if
implemented in good faith. The RRTF is strenthening its links with key
actors in Croatia with a view to assisting in its implementation and in
expediting cross-border return.
- Also on the 26th of June, the United Nations High Commissioner for
Refugees hosted the Humanitarian Issues Working Group in Geneva. The
meeting reviewed and endorsed the High Commissioner's Regional Return
Strategy and underlined the importance of minority return as key to solving
the overall return problem in the countries of former Yugoslavia. As my
Deputy pointed out at the Humanitarian Issues Working Group (HIWG) however,
the planning phase is over now. It is now results that count.
- Implementation of the Sarajevo Declaration has so far been poor. The
authorities refuse to address systematic problems in the housing allocation
system, adopting a burdensome and opaque approach instead of dealing with
individual cases one by one. US and European Union assistance for Sarajevo
has been suspended as a consequence of non-compliance. I will brief the
Steering Board of the Peace Implementation Council in full on 22 July 1998,
and discuss with them a package of possible measures to rectify the
situation.
- In a positive development, cross-Inter-Entity Boundary Line (IEBL)
returns are picking up pace. Bosnian Serbs have returned to places like
Bosanski Petrovac, Sarajevo, Drvar, and Central Bosnia. Bosniak and Croat
returns are taking place into the north-western part of the Republika Srpka
in modest numbers, and are expected to accelerate over the summer as
reconstruction programmes finish and more accommodation becomes available.
The European Commission's 1998 programme in support of return is a key
factor in generating new housing space and supporting infrastructure.
- For the remainder of the year, I will continue to apply strict
conditionality in support of return. I will not hesitate to use my
authority to remove officials who try to prevent returns. I remain
convinced, however, that 1998 is not the only year of return, however. The
return of Bosnia and Herzegovina's refugees and displaced people will take
years. The prospect of the September elections may be contributing to this
delay in the return process, as government leaders shrink from previous
commitments to allow significant minority returns for fear that these might
adversely affect their political fortunes.
Freedom of movement
- The implementation of the Uniform License Plate System is proceeding
well. To date, two thirds of vehicle owners in BiH have been issued with the
common license plates. To achieve this, a series of high-level interventions
by my Office and the UN IPTF has been required. In accordance with the Bonn
PIC Conclusions, I asked the Peace Implementation Council Members to permit
only vehicles with the new license plates to cross international borders
after 1 June. As a result of the introduction of the new license plates,
which do not reveal the place of origin or ethnicity of the car holder,
freedom of movement across the IEBL has increased substantially during the
reporting period.
- Progress on freedom of movement across the BiH borders into Croatia for
BiH citizens resident in the RS and displaced Serbs from Croatia in that
Entity has not been satisfactory. This issue has been raised frequently with
the Croatian Government, which has announced that there will be no further
discrimination against RS residents bearing new Bosnian passports. However,
the Croatian Government maintains visa and other impediments for bearers of
other travel documents resident in the RS.
- Infrastructure issues continue to require the attention of my Office.
Resumption of normal railway traffic between BiH and Croatia has yet to come
into effect. The agreement on border rail traffic has recently been
submitted to the Ministry of Civil Affairs and Communications for approval
by the Council of Ministers and discussion with the Croatian authorities.
The recently formed public corporation for railways has signed a similar
agreement with Croatian Railways, although it should be noted that this
public railways corporation has yet to formalise a book of rules governing
its operations.
- The decree on the regulation of inter-Entity bus traffic was signed in
April. Instructions are now being drawn up for implementation of the
decree. Meanwhile, no new inter-Entity bus lines have been approved.
- A protocol addressing regulation of navigation on the River Sava has
been prepared and submitted to the Ministry of Civil Affairs and
Communications for consideration and further discussion with Croatian
authorities. This protocol awaits approval.
- Bridge programs for reconstruction of Una and Sava river bridges have
been identified. However, at this time, no bridges have been reconstructed
and numerous temporary structures are in use. Seven bridges are under
consideration by the EC, two by USAID and one bridge is currently under
reconstruction under a World Bank project. Efforts to co-ordinate
reconstruction projects through the involvement of the donors and
representatives of Croatia, Bosnia & Herzegovina and the local authorities
have yet to be realised.
Police issues
- Regrettably no major improvements have taken place during the reporting
period in relation to police restructuring in the Federation. Of particular
concern are two of the Federation Cantons, which continue to exist without
Ministries of Interior having been inaugurated. UN IPTF has however made
progress in relation to the Federation Ministry of Interior. Inauguration of
the Ministry is expected shortly.
- In accordance with the Bonn PIC Conclusions and the Declaration of the
Luxembourg Ministerial meeting of the PIC Steering Board, my Office
prepared, in cooperation with UN IPTF, the necessary draft legislation for
the establishment of a border police of BiH, which is about to be submitted
to the Council of Ministers for discussion and adoption.
Missing persons, mass graves
- The issue of missing persons remains very sensitive and is frequently
manipulated by different groups for political purposes. The Working Group on
Missing Persons, chaired by the ICRC, continue to make it possible for
representatives of the family associations to have direct contact with the
relevant local authorities.
- An important step forward has been made by the Joint Exhumation
Commission, chaired by my Office. The Commission, comprising representatives
of the three parties, is the principal forum for inter-Party exhumations.
During March, it became possible to conduct exhumations for the first time
without total reciprocity. The RS team started exhumations in Jajce on 2
March, the Croat team began their exhumations in the area of Kakanj two days
later and the Bosniac team - in West Mostar, in the middle of March. The
work continues in a co-operative manner. So far approximately 250 bodies
have been exhumed in 20-30 micro locations in 4 main areas since the
beginning of March.
- The exhumations are performed with the help of the international
community. Physicians for Human Rights assists with technical and scientific
expertise, sponsored by the International Commission on Missing Persons, who
also provide funds for de-mining and forensic materials. The UN assists with
mine assessment visits to the sites and the UN IPTF monitor the local
police, who are responsible for security at the sites. SFOR provide area
security and emergency evacuation capability.
Human rights
- I am pleased with the continuing progress being made towards the goal of
securing adequate and stable funding for the Human Rights Chamber, the Human
Rights Ombudsperson and the Commission for Real Property Claims (CRPC).
Greater financial security has enabled the institutions to deal more
effectively with their rapidly growing caseload. However, the commitment by
the Bosnia and Herzegovina Government to contribute DM 200,000 to each
institution from its 1997 budget and DM 500,000 from its 1998 budget has not
yet been met. My Office is continuing to work with the government to ensure
that this obligation is fulfilled.
- There is still a serious lack of cooperation on the part of the
authorities in ensuring that the decisions and recommendations of these
institutions are effectively implemented. After a long delay, an agent to
represent the State in proceedings before the Chamber was finally appointed.
Unfortunately, one has still not been appointed for the Ombudsperson. My
Office is continuing its involvement in monitoring authorities' responses
and coordinating intervention in cases in which the authorities have failed
to meet their obligations. Mechanisms and strategies to ensure respect for
the final and binding decisions of the Human Rights Chamber and the
Commission for Real Property Claims as well as implementation of
recommendations by the Ombudsperson and the Federation Ombudsmen must be
strengthened. Implementing legislation for the Commission for Real Property
Claims has been drafted and legislation on behalf of the Commission on Human
Rights is also under consideration. Coordination and cooperation among the
institutions is good and measurable progress has been made in terms of the
institutions' impact in contributing to the respect for human rights and the
rule of law in Bosnia and Herzegovina.
- My Office is extremely concerned by the increase in the number of
incidents of destruction of property and violence directed against returnees
and minority residents, in municipalities such as Drvar, Stolac and Travnik.
The murder of an elderly Bosnian Serb couple attempting to return to Drvar
in April, the organised violent assault against Bosnian Serb returnees and
members of the international community on 24 April in Drvar, as well as a
car explosion in Travnik resulting in the death of a Bosnian Croat police
officer and the wounding of his Bosniac police partner, have been strongly
condemned by the international community. These incidents underscore the
failure of local and national authorities to assume their responsibilities
for ensuring a secure environment essential for implementation of Annexes 6
and 7 of the Peace Agreement. Allegations of human rights violations by
local police continue to be reported in both Entities. In response to the
serious allegations of abuse in police custody in Teslic, however, the joint
UN IPTF and RS police investigation has led to the suspension of members of
the police force in Teslic. It is hoped that the actions taken as a result
of this joint investigation will send a clear message to the authorities in
both entities that such acts will not be tolerated.
- An agreement was reached between the two Ministries of Education in May
regarding a review of all textbooks in use in primary and secondary schools
(with the exception of textbooks for mathematics, science and technical
vocational courses). Under the Agreement, coordinated by my Office with the
assistance of UNESCO, the Council of Europe and the World Bank, expert teams
have been established by the Ministries to review the textbooks in order to
identify offensive material which should be removed in advance of the
upcoming school year. My Office is also working with these international
organizations to ensure necessary curriculum reform in both entities.
- While the adoption of the property and housing laws in April by the
Federation National Assembly has put in place the essential legal framework
for return of refugees and displaced persons to their pre-war homes,
implementation of these laws has been slowed by numerous forms of deliberate
obstruction. In the Luxembourg Declaration, the Steering Board urged the
Federation authorities to take immediate steps to ensure full implementation
of the legislation.
- The Republika Srpska government has failed to date to fulfil its
commitment to ensure that draft property and housing laws, which are
essential to return and to peace implementation generally, are adopted. A
deadline of 31 August was set in Luxembourg for draft legislation acceptable
to my Office to be finalized and passed by the National Assembly. My Office
will continue to work to ensure that this deadline is met.
Strengthening the Rule of Law and Co-operation with the ICTY
- Recent developments in the area of judicial cooperation have been
encouraging, particularly with the signing of the Memorandum of
Understanding on Legal Assistance between Institutions of the Federation and
Republika Srpska on 20 May. Further, the Inter-Entity Legal Cooperation
Commission, established by the BiH Presidency in February 1998, held its
inaugural session in June. Once fully established, the Commission will
provide a forum in which concrete recommendations will be made as to how to
expand and improve legal cooperation between the Entities as well as to
provide advice on the implementation of the Memorandum of Understanding on
Legal Assistance.
- Despite the PIC Conclusions in Bonn, which called for the Federation to
adopt the new Federation Criminal Code and Criminal Procedure Code by 31
January 1998, both codes have remained under consideration by the Federation
Parliament for more than four months after this deadline. In Luxembourg,
the Steering Board therefore called upon the Entities to bring the current,
first phase of the Criminal Law reform to completion and urged the
Federation and RS to enact new criminal codes and criminal procedure codes
by 30 June 1998 and 31 August 1998 respectively. The Federation has failed
to meet its deadline of 30 June, despite nearly a half-year extension. Both
laws are essential for effective protection of the rights and freedoms set
forth in the European Convention on Human Rights and its Protocols as well
as for the functioning of the judicial systems in Bosnia and Herzegovina.
My Office has intervened strongly to ensure adoption by the Federation of
these laws and will continue to place pressure on the Republika Srpska to
meet its obligations under the Luxembourg Declaration.
- In accordance with the Bonn PIC Conclusions, my Office has continued to
work to ensure a comprehensive and coordinated approach to judicial system
reform. While progress has been made in this field, I remain concerned that
judicial reform efforts are not proceeding quickly enough to address the
urgent needs of the peace process. For example, the inability of the legal
system to address violence which threatens the return of refugees and
displaced persons must be addressed. In addition, there is a compelling
need for reform of the judicial appointments system. Along with other
international organizations, my Office has intervened to ensure that
judicial appointments are made on the basis of professional qualifications,
rather than political criteria. However, a more systematic approach is
necessary, and to that end draft legislation is being prepared to address
this issue. Moreover, I have asked the Venice Commission of the Council of
Europe for its Opinion on the question whether a judiciary at the state
level needs to be established in order to hear, inter alia, claims submitted
by persons whose interests have been prejudiced by actions of the BH
institutions. If the Venice Commission's Opinion is affirmative, necessary
legislative measures will have to be taken for the establishment of such a
judiciary.
- Also at Bonn, the PIC stressed that "monitoring of the judicial system
is an essential element of this process" and called for "the necessary
resources to be devoted to that task." Unfortunately, this appeal has not
been met. Judicial system reform efforts continue to be hampered by the
current ad hoc approach to monitoring, which does not provide the requisite
information for effective targeting and development of reform programs.
Comprehensive judicial system monitoring would increase the efficiency of
all other efforts in this field, and itself acts as a deterrent against
abuses.
- Co-operation with ICTY continues with the detention of four Bosnian
Serb indictees by SFOR troops during the reporting period, as well as the
voluntary surrender of a Bosnian Serb indictee in April.
- My Office has also continued its work in supporting efforts underway to
reform the legal framework applicable to NGOs, to establish a proper legal
and security environment which supports the development of civil society
organisations. A working version of a new draft Law on Associations and
Foundations was distributed in June for public discussion. This first
distribution is primarily aimed at domestic NGOs in Bosnia and Herzegovina,
the aim being to solicit their views on legislation that will crucially
affect them. A sound legislative framework for NGOs is vital. Freedom of
expression, association and peaceful assembly are fundamental to an enduring
peace in Bosnia and Herzegovina. Expression of these rights through a
vigorous civic society helps build social stability and respect for the rule
of law. Appropriate legislation protects these rights and instills
accountability.
Economic reform and reconstruction
- The Luxembourg Declaration of the PIC Ministerial Steering Board
stressed the importance of establishing an integrated economy in BiH, as
well as moving the country towards a market-led economy. In this light, some
important progress has been made in the period under review. However, the
implementation of reforms in economic management has remained difficult.
- A major step forward in creating the necessary conditions for sustained
economic development was the approval by the IMF Executive Board on 29 May
of a stand-by arrangement. Under the arrangement, a total of USD 82 million
is made available to strengthen the financial position of the country in
general and the Central Bank in particular. The loan will facilitate the
realization of the 1998-1999 macro-economic program as presented by the BiH
authorities. Further support for achieving key economic reforms in public
finance is given by the World Bank; following the IMF agreement, the Public
Finance Structural Adjustment Credit, totaling USD 63 million, was approved
on 4 June.
- The IMF stand-by loan provided necessary reserve funds for the Central
Bank of BiH (CBBH). This in turn enabled the introduction of the Konvertible
Marka (KM), the new common currency for BiH. The KM is pegged to the DM in a
ratio of 1:1. This exchange rate is secured by the currency board
constraints, under which all KM in circulation will be backed by DM or other
convertible currency. The introduction of the KM took place on 22 June. Even
though the initial introduction has suffered from some difficulties, I am
confident that the KM will be reliable currency for all of BiH.
- An essential part of the establishment of a fully independent CBBH is
the liquidation of the former national bank, the NBBH. On 28 May, the
Presidency of BiH approved the liquidation plan for the NBBH. The plan is
now being carried out by an experienced liquidator.
- A unified economic space is a pre-condition for the future economic
development of BiH. It is therefore encouraging that the legal framework
concerning all aspects of customs for BiH is nearly completed. As of 1
January 1999, BiH will have modern customs procedures compatible with EU
practice. The Customs and Fiscal Assistance Office (CAFAO), funded by the
EC, is helping the local authorities to ensure proper implementation of the
customs regime, and to improve the administration in all relevant fields and
to increase customs revenues.
- Apart from a unified customs practice, internal trade without barriers
is a second essential component of the unified economic space. With active
support of my Office, the Entities have started a constructive dialogue on
issues concerning trade within BiH. Even though many barriers are to be
removed, some initial results have already facilitated increased trade. In
particular, the RS has amended its system of sales taxes and both Entities
have removed restrictions to trade with the other Entity.
- The Council of Ministers (CoM) has adopted the draft Framework Law on
Privatization of Enterprises and Banks, drafted by my Office. This is an
important step forward since the Law secures the legal environment for
privatization programs to be implemented by both entities. The Law further
stipulates that basic principles such as non-discrimination of DPs and
refugees, transparency and public accountability need to be observed. In
order to monitor that privatization process is in compliance with the GFAP
and with this Law, I have established a Privatization Monitoring Commission
which will make recommendations and which will report to me.
- Significant progress has been made in the RS. After nullification of
the privatization lottery a new privatization and capital market law package
has been drafted with the assistance of the IC. These laws have been
accepted by the RS Cabinet and were passed by the Parliament at the
beginning of July, ahead of schedule.
Reconstruction
- The fourth donor conference for BiH was held in Brussels on 7 and 8
May. A total of USD1.2 billion was pledged by 30 countries and international
organizations. My recommendation to the donors to increase their financial
effort in the RS, including the Eastern part, was well received, and also
resulted in more reconstruction projects being initiated in the RS during
the period under review.
- Under my chairmanship, the Economic Task Forces and the sectoral Task
Forces continue to co-ordinate the financial support offered by donors. The
reconstruction projects already completed in 1998 now amount to USD 130
million, with an additional USD 600 million currently under implementation.
Two thirds have been invested in the Federation, the share of the RS being
now above one quarter of the total USD 730 million. Most of the remaining,
USD 60 million has been spent at the national level in projects involving
both Entities, essentially in the energy, electrical and telecommunications
sectors.
- Two thirds of this USD 730 million is spent on infrastructure repairs,
transport, energy and water supply systems. The direct share of the RS
represents about USD 130 millions for these three sectors only. Of the USD
60 million spent in the health and education sectors, 35% is going to the
RS.
- The funding of the infrastructure reconstruction has significantly
increased in the RS in all sectors, with exception of the housing; of the
total USD 121 million spent in reconstruction of houses and apartments,
about 90% goes to the Federation. This is mainly related to the rate of
return, which is much lower in the RS than in the Federation;. The housing
projects implemented or already finished in 1998 represent USD 6 million in
the western RS and USD 2 million in its eastern part.
- The Project Implementation Units established in both entities by the
World Bank will help to co-ordinate and monitor the USD 170 million Second
Electric Power Reconstruction Project designed to restore normal and
reliable power supply in the country. Additionally, the World Bank approved
in June a new USD 7 million credit line to improve forest management, which
is part of a $20.2 million project co-financed by the EC, Norway and Italy.
- The EBRD has secured a USD 20 million loan under the Telecommunications
Emergency Reconstruction Project. The Bank seeks additional financing from
donors (Switzerland, Japan, Norway, Italy and the Netherlands) to finance
complementary equipment and materials for an estimated value of USD 20
million. Local operators will provide financing for an amount of
approximately USD 10 million. The total allocated to Telecommunications
Reconstruction is therefore approximately USD 50 million.
- USAID's Business Development Program has approved DM 20 million in
loans to private sector businesses. To date, this Program has approved
approximately DM 200 million in loans to private sector businesses in both
the Federation and the RS (87% and 13% of the total, respectively). This
assistance has resulted in the creation of over 17000 jobs. To date, over
500 companies have received technical assistance on business planning,
corporate organization, financial and quality management, marketing, and
other business functions.
- In April, the European Community approved 17 contracts worth USD 70
million with non-governmental organizations related to the implementation of
EU-funded projects designed to facilitate the return of refugees and
displaced persons. These projects were part of a wider USD 150 million 1998
return program funded by the European Commission.
- Nearly half of the reconstruction effort is now financed through three
main donors; the European Community, USAID and the World Bank. However,
numerous governments, including non-European countries, are generously
supporting the process on a bilateral basis. Besides donors, commercial
companies feel increasingly confident about the future of the country and
are increasing their involvement in the economy, with for instance the
German company VW preparing the reopening of a car production facility in
Sarajevo. The overall level of foreign investment is however very low.
Public Utilities
- In the field of Public Utilities, limited progress has continued. The
newly established railway Public Corporation has drafted internal rules and
procedures and is starting to become operational. It has signed an agreement
with Croatian Railways. However the Federation has still not prepared a new
law on railways which would create the Federation railway company. Similarly
the Republika Srpska has not amended its current law to bring it into line
with the Peace Agreement. Railway traffic has not taken off mainly due to a
lack of domestic demand. Moreover, there is still no agreement signed with
Croatia at the State level to allow international traffic with BiH.
- The decree on the regulation of inter-Entity bus traffic was signed
mid-April. Instructions are now being considered for implementation of the
decree. Meanwhile, no new inter-Entity bus routes have been approved.
- A protocol addressing regulation of navigation on the river Sava has
been prepared and sent to the Ministry of Civil Affairs and Communications
for consideration and further discussion with Croatian authorities. Three
months after the initial proposal, a protocol has yet to be approved.
- Significant progress has been achieved in the field of
telecommunications. A working group including all interested parties has
agreed on a draft state law to be forwarded to the Council of Ministers. On
22 April a Memorandum of Understanding concerning the resumption of
Inter-entity mail transports was signed. As a result postal exchange between
Sarajevo and Banja Luka has been established on a regular basis. Similarly,
a draft text on a Joint Corporation for electrical transmission is being
prepared.
- In line with the Bonn PIC conclusions, the OHR Anti-Fraud Unit was
created in mid April 1998 to assist authorities in identifying illegal
activities and in coordinating international efforts in the areas of
government transparency, corruption and organized crime. The unit has had
some notable success both in the development of an overall anti-corruption
strategy as well as in individual cases. The Unit has developed productive
liaisons with local governmental agencies and international organizations to
ensure a coordinated approach to all anti- corruption/transparency efforts
in BiH and to implement an effective local anti-corruption system.
- The Council of Ministers finally decided to tackle the issue of the
implementation of the State budget. With the help of my Office, the Minister
of Civil Affairs and Communications and his deputies agree with the Entities
on a procedure to implement the budget as per the law, starting on 1 June
1998. For the last six months of the year, Entities will contribute to a
central bank account and salaries will be paid according to the payroll of
the Law of the Council of Ministers.
Budgetary support to the Republika Srpska
- Both to boost economic recovery and as an incentive to the new
Government to live up to its pledges to implement Dayton, I have urged the
international community to provide funds to cover public service wage
arrears. The RS Government has received budgetary assistance of nearly DM 27
million from six donors (EU, USA, UK, Canada, the Netherlands and Sweden).
The program has covered the payment of wage arrears in the public service
for seven months. The beneficiaries included General Administration
(excepting Police and Army) and Education. The final portion of the whole
budgetary support program was disbursed at the end of June in the newly
introduced Konvertible Marka (KM) to help reinforce public confidence in the
currency. A key condition attached to the budgetary support included
accountability and transparency of these funds, cooperation with EC CAFAO in
restoring customs and excise collection, and working with the IMF to
implement an annual budget. The Government has cooperated in a satisfactory
manner and fulfilled these conditions. These developments and other
initiatives to pave the way for a market economy have enabled the RS
Government to enter into a stand-by arrangement with the IMF which would
provide a total of DM 100 million to the RS Government, a major step
forward.
Mine clearance
- Both Entity Mine Action Centers are now established as bodies within
the Entity Governments. This will be confirmed at a ceremony to mark the
formal transfer of the UNMAC to the BiH MAC in early July, thus completing
the establishment of all the bodies asked for in the London PIC Conclusions
on demining.
- The results of the Mines, Ordnance and Other Warlike Material Amnesty
were encouraging. In addition to a considerable quantity of these items
being handed in, 2400 weapons were also given up, even though they were not
the primary focus of the amnesty. It therefore seems worthwhile to pursue
an amnesty specifically aimed at weapons. The BiH Authorities should be
urged to enact legislation so that such an amnesty can be implemented by the
Entities in conjunction with SFOR and the UN IPTF.
- Three demining schools are now being established at Banja Luka, Travnik
and Mostar. This marks significant progress by the Entity armies towards
achieving mine lifting to recognized humanitarian demining standards. This
will not only bring valuable resources to stretched clearance programs, but
will also widen the choice for donors as to where their investment will be
most efficiently used.
- The Bonn PIC Conclusions called for the renunciation on the use of all
landmines. However there is still no formal renunciation of the export or
continued manufacture of anti-tank mines.
This lack of commitment sends a confusing message to potential donors of
demining resources. There is also still no confirmation that all mine
information has been transferred to the BiH MAC. These matters are being
pursued by the Board of Donors.
- The Entity Ministries of Defense have made a presentation to the SCMM
on the implementation of the Ottawa Treaty.
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