At its session held on 22 December 2005, the Finance Committee of the Republic of Serbia discussed the Report of the Working Group of the Finance Committee charged with selecting the most favourable bidder to perform external audits of final balances of the budget of the Republic of Serbia for 2002 and 2003. Committee members endorsed the Report, along with an amendment asking for an extension of public procurement to the provision of auditing services for the final balance of the budget of the Republic of Serbia for 2004, and forwarded the Report to the Ministry of Finance.

The session also discussed the Report of the Republic Electoral Commission on the audit of financial reports of proposers of proclaimed electoral lists and proposers of candidates for public office on the sources, amounts, and structure of assets collected and expended in the course of election campaigns for local councilpersons, chairpersons of municipalities, and mayors in local elections held on 19 and 26 September 2004. The Committee took the view that the Republic Electoral Commission should finish auditing financial reports of proposers of proclaimed electoral lists and proposers of candidates for public office on the sources, amounts, and structure of assets collected and expended in the course of election campaigns.

Members of the Finance Committee discussed a request made by the Serbian Association of Accountants and Auditors for an authentic interpretation of Article 2 and Article 23, Paragraph 2 of the Value Added Tax Act. Under Article 158, Paragraph 1 of the Rules of Procedure of the National Assembly of the Republic of Serbia, only an entity authorised to propose bills may request the adoption of an authentic interpretation of a law. Committee members agreed to forward the request to the Chairman of the National Assembly, who should decide whether to forward the request, in turn, to the Government of the Republic of Serbia, as an entity authorised to propose Bills, or to the Legislative Committee, which, under the Rules of Procedure, is also authorised to prepare a proposal of an authentic interpretation.

The thirty-seventh sitting of the Finance Committee, held on 6 September 2005, discussed the Report of the Ministry of Finance on inspection carried out by the Budget Control Department to uncover irregularities in the use of public funds of the Ministry of Defence. At that sitting, the Committee resolved to require the Ministry of Finance to report on a weekly basis to the Finance Committee on findings of the Budget Control Department and further control measures. As the Committee has so far received only one report, Committee members sent an official letter to the Ministry of Finance, requesting it to adhere to Committee conclusions, and submit reports on a regular basis.

At today’s session, the Finance Committee resolved to request the Bank Rehabilitation Agency to submit a report on its activities over the past two years, with special attention being paid to cases of the four largest banks (Beogradska Banka, Jugobanka, Investbanka, and Beobanka). The report must be submitted by 10 February 2006.

The sitting was chaired by the Committee’s vice-chairman, Radojko Obradovic.