Vinko Jakic gets dismissed, OdRaz gets shut down: Who gets 70 million KM

The federal government instructed the Ministry of Justice and Ministry of Finance to implement the procedure of closing down the Foundation of Sustainable Growth (OdRaz). Prior to that, the federal government dismissed the director of foundation, Vinko Jakic, due to a gross breach of duty.

That's how one of the best BH development foundations was brought down to its knees. Until Jakic took the position of its director, the foundation was working successfully.

Our source from the federal government told us that, closing down of OdRaz left a revolving fund of 70 million KM, and that the government is not sure who should have it.  

The grant was meant as a credit for SME with conditions far better than those at commercial banks. So it is no wonder that HDZ BiH have shown a great interest in the revolving fund. They are trying to move it over to the federal finance ministry to run it, headed by the HDZ minister Jelka Milicevic.

- That would be very bad decision. The revolving fund is designated to support development of small and middle enterprises. That's why it would not be wise for any of the ministries to run it, particularly not the finance ministry as it does not have any connection with the entrepreneurs. Perhaps it would be the best to return the fund to the Union Bank. The bank is owned by the federal government and it could continue dispersing low interest loans for the economic development in FBiH.

The Foundation of Sustainable Development (OdRaz) used to be an important foundation of the federal government. It was founded back in 2001. It served as a vehicle for implementation of development projects across the municipalities in FBiH and was financed by the World Bank and other international institutions. The infrastructure projects were deemed very important for the entire local community.

From 2001 through 2013, the World Bank was evaluating OdRaz as one of the most successful foundations of this sort in SouthEast Europe. The management of the foundation handled dozens of projects with the annual net of some 100 million KM.

As the controversial Vinko Jakic became the director of OdRaz, the foundation was ruined and numerous projects halted or closed down before they were even implemented.

As the director of OdRaz, Jakic performed a number of criminal acts, including breach of duty and misuse of authority, which has eventually brought the foundation to ruin. Because of Jakic the international finance institutions stopped payment of grants and conditioned any continuation of finance support to the federation with Jakic's leaving the agency.

The position of director of OdRaz belongs to the coalition of SDA-HDZ, SBB. However, they never even tried to appoint someone from their personnel, which they had done in all other cases where they got directors positions. That created lots of room for speculations that Jakic is actually their man, which he openly boasted about in the federal government.

The federal government issued an order for closing down the foundation, however, they did not specify any deadline. Until the foundation is closed down, it will create losses as the costs of rental fees and 16 workers are accumulating on a daily basis. Also, there is a question if Jakic will answer at the court for criminal acts of misuse of authority and breach of duty. Or, everything will end with his dismissal.