The High Representative in Bosnia and Herzegovina, Valentin Inzko, today issued an order suspending the application of the RS Law on the Status of State Property Situated on the Territory of the Republika Srpska and under the Disposal Ban, pending a final decision by the BiH Constitutional Court.

Considering announcements that there will be at least one domestic challenge to the constitutionality of the RS State Property Law before the BiH Constitutional Court, the High Representative’s order will ensure that the situation on the ground will not be complicated by the law being implemented before the Court reviews the case and issues its Decision.

Today’s order prevents the legal uncertainty that would follow any act which would change the ownership over these properties before the Constitutional Court has rendered its final decision. It does not prejudge a decision in favor of any side; instead it allows the competent institution time to review the case.

The High Representative also warned that unless and until the Constitutional Court has rendered a final decision on the matter concerning the law in question, all competent authorities must refrain from applying the law. This includes an obligation by all competent authorities to refrain from taking action to change in relevant registries the ownership rights of properties falling under the disposal bans earlier issued by the High Representative.

In the meantime, the newly elected authorities should do their utmost to settle the question of State Property as quickly as possible. “Finding agreement on State property is a test of the seriousness of those elected in October”, HR Inzko said. This agreement would ensure that each level of authority in Bosnia and Herzegovina owns the property it needs to exercise its respective constitutional and legal competencies.

HR Inzko also reiterated that under the earlier HR-enacted bans on disposal of state property, unilateral action by any level of government in BiH is prohibited. “It is not only the RS, but also the Federation and State levels, which are prohibited from disposing of state property before an acceptable and sustainable resolution of the issue of apportionment between the levels of government is reached.”

Since 2004 the Steering Board of the Peace Implementation Council (PIC SB) has called for a lasting solution to this issue, and the BiH Council of Ministers has tasked a Commission to propose appropriate legislation. In parallel, the High Representative enacted several Disposal Bans to prevent potential prejudice by ownership transfers.

Resolution of the State Property issue between the State and other levels of government is a prerequisite for legal certainty over ownership of these properties; it will stimulate investment and economic growth and would support reconciliation in BiH. An acceptable and sustainable apportionment of State property is also one of the requirements for OHR closure, as outlined by the PIC Steering Board in the ‘5plus2’ agenda adopted in February 2008. In this regard, the PIC has required a solution to be mutually agreed, and it has urged the authorities in BiH to refrain from taking unilateral actions, reminding them that such actions only have the effect of preventing resolution of the state property objective.

Statement by Ambassadors of Peace Implementation Council Steering Board

All the Ambassadors of the Peace Implementation Council (PIC) Steering Board, except Russia declare their full support for the High Representative’s Order of January 5, 2011, which suspends the application of the RS Law on the Status of State Property Situated in the Territory of the Republika Srpska and Under the Disposal Ban, pending a final decision by the Constitutional Court of BiH on the said law.

Recalling that, in their communiqués of 30 June and 1 December 2010, they unanimously urged the authorities in BiH to refrain from taking unilateral actions related to the State Property issue, the undersigned Ambassadors of the Steering Board of the PIC deplore that the Republika Srpska, by taking measures to put into force the RS Law on the Status of State Property Situated in the Territory of the Republika Srpska and Under the Disposal Ban, has undertaken a unilateral action that could complicate or prevent a negotiated solution to the State Property issue. This move could also delay the “acceptable and sustainable resolution of the issue of apportionment of property between state and other levels of government,” one of the five objectives for the transition of OHR.

The undersigned Ambassadors of the PIC Steering Board note that domestic challenges of the Law before the Constitutional Court of BiH have already been announced. They view the Order of the High Representative as a necessary step to ensure that the highest judicial institution in BiH has the opportunity to decide on the request for the review of the constitutionality of this Law before any registrations of property or other measures are undertaken that could complicate subsequent efforts to resolve the State Property issue.

The undersigned Ambassadors of the PIC Steering Board remind all authorities in BiH of their legal obligations to comply with the decisions of the High Representative, as well as those of the Constitutional Court of BiH.

Dodik: Inzko's decision on state property has no significance for RS

RS president Milorad Dodik said that High Representative in BiH Valentin Inzko had "no authority" to suspend the implementation of RS law on the status of state property until the decision of the BiH Constitutional Court.

Dodik said for the media in RS that Inzko’s decision bares "no importance" for authority representatives in RS and that it will be published in the RS Official Gazette.

He added that the Constitutional Court has no jurisdiction to decide on the entity law on property.

He repeated the claim that the property belongs to RS, and that president of SDA Sulejman Tihic knows this even though he announced that he shall ask the Constitutional Court's annulment of the law on the status of state property located on the territory of RS because he believes that this act violated the Constitution and laws of BiH.