Illegal employment mediation in public companies -…

High-level corruption cases in the Western Balkans and Turkey

Illegal employment mediation in public companies

Introduction

The former secretary general of the ruling Party of Democratic Action (SDA), Amir Zukić, and other prominent members of SDA are being tried on charges of illegal employment mediation in public companies.

Country: Bosnia and Herzegovina

Sector: Energy and natural resources

Offence: Abuse of official position or authority

Phase: 1st instance procedure

Description of the case

The nine defendants, Amir Zukić, Safet Bibić, Nedžad Trako, Senad Trako, Ramiz Karavdić, Esed Džananović, Asim Sarajlić, Mirsad Kukić and Seid Fazlagić, are suspected of having been members of an organised criminal group formed by Zukić and Bibić in 2016 to illegally facilitate employment. Several of the suspects were or still are prominent members of SDA and held public office at the time of the offence.

The group allegedly found party members and others who were willing to pay for employment at the Bosnian public enterprise Elektroprivreda Bosne i Hercegovine (BiH). This electric utility is one of the biggest public companies in Bosnia and Herzegovina. Amir Zukić is accused of using his influence over Esed Džananović, a former SDA party member and manager of Elektroprivreda BiH, to carry out the illegal employment.

On 16 March 2017, the Cantonal Prosecutor’s Office in Sarajevo filed an indictment against the defendants, which was confirmed by the Municipal Court. They are accused of various criminal offences, including trading in influence and abuse of position of authority. According to the indictment. their benefits ranged from KM16,000 (around €8,200) to KM19,000 (€9,700).

The case of former director general of the Banovići mine and member of parliament Mirsad Kukić was separated from the others due to health concerns. Kukić’s case was tried separately. On 22 October 2020, the Municipal Court in Sarajevo sentenced him to one year in prison for receiving a reward for trading influence in Elektroprivreda BiH. Seid Fazlagić had previously reached a plea agreement, whereas the trial for Zukić, Sarajlic and others is ongoing (see here). Due to the corruption charges, the US State Department has announced that Zukić is undesirable in the United States.

Applicable corruption offence

Association for the purposes of criminal offences in connection with the criminal offence of accepting an award or another form of benefit for the trade of influence and unlawful solicitation (Article 249[1], Criminal Code of the Federation of Bosnia and Herzegovina)
Abuse of office/authority (Article 383[3][1])
Accepting awards or other forms of benefit for the purpose of influence trade (Article 38[1]).
Assisting the offender after the commission of an offence (Article 33)
Unauthorised possession of weapons or explosives

Suspects’ institutional affiliation

Amir Zukić was a member of SDA, and secretary general for three consecutive mandates. He was a representative in the Cantonal Assembly in Sarajevo and in the House of Representatives.

Esed Džananović was a member of the same political party, and a manager of public enterprise Elektroprivreda BiH (see here).

Asim Sarajlić was mayor of Vogošća Municipality for SDA. He was elected to the House of Representatives and as a delegate to the House of Peoples.

Mirsad Kukić was director general of Banovići mine. He was also SDA representative in the Cantonal Assembly of Tuzla Canton. In 2018, he was elected to the House of Representatives. In 2018, SDA excluded him from the party, so he formed his own political party, the Movement of Democratic Action (PDA).

Date of offending

Between 1 April and 24 August 2016

Sector affected

Energy and natural resources; Public institutions

The US State Department announced that Zukić is undesirable in the United States because of corruption charges.

Amir Zukić and Mirsad Kukić were excluded from SDA. Subsequently, Mirsad Kukić formed a new political party called PDA (see here).

Members of SDA with a mandate in Parliament attempted to amend the Criminal Code, specifically Article 382(1), which defines the criminal offence of accepting an award or other benefit for trade in influence. According to the proposal, trade in influence without a bribe would not be a criminal offence. However, the amendments were not introduced because they did not pass the parliamentary procedure (see here).

Court

Municipal Court of Sarajevo (see here)

None

Current stage of the case in criminal procedure

1st instance procedure

Procedural history

The Prosecutor’s Office of Sarajevo Canton issued the indictment on 10 March 2017. The Municipal Court of Sarajevo confirmed the indictment in March 2017. In May 2017, the trial began and it is ongoing (see here).

Obstacles

None

Resolution of the case

N/A

Applicable minimum and maximum penalty

Organising the commission of a criminal offence in connection with receiving awards or other forms of benefit for the trade of influence (Article 340 in connection with Article 382, Criminal Code of the Federation of Bosnia and Herzegovina): minimum of 6 months to 5 years of prison
Receiving awards or trade of influence (Article 382[2]): minimum of 6 months to 5 years
Unlawful solicitation (Article 380[2]): minimum of 1 year to 10 years of prison
Abuse of authority or office (Article 383[1]): minimum of 6 months to 5 years of prison
Assisting the offender after the commission of a crime (Article 33): minimum of 6 months to 5 years of prison

Charges pressed by the prosecutor and the actual case including penalties requested

Association for the purposes of criminal offences in connection with the criminal offence of accepting an award or another form of benefit for the trade of influence and unlawful solicitation (Amir Zukić, Safet Bibić, Nedžad Trako, Senad Trako and Ramiz Karavdić)
Abuse of authority (Esed Džananović)
Accepting awards or other forms of benefit for the purpose of influence trade (Asim Sarajlić and Mirsad Kukić)
Assisting the offender after the commission of the offence (Seid Fazlagić)
Unauthorised possession of weapons or explosives (Amir Zukić)

Sanctions imposed

N/A

Sanctions enforced

N/A

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