US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated the incumbent Prime Minister of Bosnia’s Federation (FBiH) entity, Fadil Novalic, and businessman Slobodan Stankovic and his company Integral Inzenjering A.D. Laktasi for "undermining democratic processes in Bosnia and the Western Balkans."

The Department of Treasury said that “in his official capacity as Prime Minister of the FBiH, Fadil Novalic (Novalic) misused pensioner data for the benefit of his own political party and contrary to BiH law. In the week before the 2018 elections, Novalic used pensioner data he acquired through his official position to send out letters listing his accomplishments and promising increased pensions in a country where the issue of pensions has strong political salience. This action violates BiH law and reflects a larger, publicly reported pattern of using his position of political influence for personal or party gain, undermining democratic processes or institutions in BiH.”

The Treasudy Department said that Slobodan Stankovic was one of the wealthiest individuals in BiH and longtime owner of Integral Inzenjering A.D. Laktasi, a large engineering firm in Bosnia’s Republika Srpska (RS) entity.

“Both Stankovic and Integral have been linked to corruption in the construction sector, where Integral has been awarded some of the biggest projects in the RS thanks to its proximity to RS leadership. Major construction projects are often handed to Stankovic without fair and open competition. The vast majority of Stankovic’s wealth comes from public money. Stankovic is also a former owner of U.S.-designated Alternativna Televizija d.o.o. Banja Luka (ATV), a media outlet under the personal control of U.S.-designated and corrupt member of the Presidency of BiH, Milorad Dodik (Dodik), whose RS secessionist rhetoric and actions threaten stability and undermine the DPA. Stankovic’s acquisition of ATV led to the outlet taking a clear bias in favor of Dodik. The purchase and transformation of ATV demonstrates the reciprocal nature of Dodik’s corrupt relationships, as Stankovic’s wealth gives Dodik a rich and powerful ally who benefits him politically,” the Treasury Department said.

Dodik was previously designated for having actively obstructed and having posed a significant risk of actively obstructing the Dayton Peace Agreement that ended the 1992-1995 war in Bosnia, and for being responsible for or complicit in, or having directly or indirectly engaged in, a violation of, or an act that has obstructed or threatened the implementation of, Dayton Agreement, and for being responsible for or complicit in, or having directly or indirectly engaged in, corruption related to the Western Balkans.

ATV was previously designated for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Dodik.