Member Article

The provision of gifts and hospitality to public officials has recently been the subject of a number of news stories in the Serbian media, covering not only the official reports on the variety of protocol gifts received by the high ranking officials from the leaders of other countries, but also the alleged corruption affairs involving the potential bribing of various lower-level officials by companies and individuals seeking an unfair advantage in the market.

 
Considering that this important topic is increasingly relevant for the everyday business activities of companies in Serbia, especially in connection with the recent anti-corruption initiatives and increased Government’s efforts towards prosecuting organized crime, it should be noted that Serbian regulations contain rather strict rules regarding any kind of gifts provided to both officials and state servants. In addition there are special rules regulating the provision of gifts to healthcare professionals and the sponsorship of their scientific and promotional gatherings.

Provision of Gifts and Hospitality to Public Officials

Under the Law on the Anti-corruption Agency, officials[1] are only allowed to receive and keep protocol and appropriate gifts in connection with the exercising of their public function, whereas the value of such gifts must not exceed 5% of the average net monthly salary in Serbia (approximately EUR 18.00), while the total value of the received protocol and appropriate gifts per calendar year must not exceed the equivalent of the average net monthly salary in Serbia. The definition of gifts includes not only money and items, but also any rights, services rendered without corresponding compensation, as well as every other benefit granted to an official or a related person in connection with the exercising of their public function (e.g. meals, travel and hotel expenses, etc).

The relatively general provisions of the Law on the Anti-corruption Agency have been elaborated in more detail in the Regulation on Gifts to the Officials, which was enacted at the end of 2011, which regulates the exceptions under which the above rule does not apply, the gifts that cannot be considered as protocol or appropriate and which cannot be accepted under any circumstances, and the obligations placed on officials to report received gifts, etc.

In addition, the provision of gifts to state servants[2] is regulated by the Law on State Servants, which does not provide a precise determination of the value of the gifts that can be accepted – it is only stated that these gifts, appropriate or protocol, should be of a “lesser value”.

The Provision of Gifts to Healthcare Professionals and the Sponsorship of Their Scientific and Promotional Gatherings

As far as the provision of gifts to healthcare professionals is concerned, the Law on Medicines and Medical Devices stipulates that it is prohibited to advertise medicines (in order to encourage their prescriptions and dispensing) by way of the granting or promising of financial, material or other benefits.

In addition to the above, this law specifies that it is prohibited to sponsor scientific and promotional gatherings to a value higher than the value of the necessary expenses, i.e. to grant higher financial, material or other benefits other than the payment of travelling costs, accommodation, meals and the costs of participation at scientific and promotional gatherings.

Finally, the Regulation on the Manner of Advertising Medicines and Medical Devices prescribes that expert associates of the medicine’s advertiser may only provide healthcare professionals with gifts of a symbolic value which relate to their practice (e.g. pens, calendars etc).

It is important to note that both the general rules relating to the officials and state servants, as well as the special rules relating to the healthcare professionals should apply in case of the provision of gifts and sponsorships to healthcare professionals who are considered as the officials or state servants, at the same time.

If you have any questions or concerns, please contact us on the following email addresses:

→ Marjan Poljak, Partner, Commercial & Healthcare
[email protected]

→Sanja Spasenovic, Senior Associate, Commercial & Healthcare
[email protected]


[1] Under the Law on the Anti-corruption Agency, an official is considered to be any person elected, appointed or nominated to the bodies of the Republic of Serbia, autonomous province, local self-government unit and the bodies of public enterprises and companies, institutions and other organizations established (or where it has its shareholding) by the Republic of Serbia, autonomous province, local self-government unit, and any other person elected by the National Assembly.

[2] Under the Law on State Servants, a state servant is any person whose work is consisted of a job which falls into scope of the state administration authorities, courts, public prosecution offices, the Republic's public attorney office, the National Assembly's services, President of the Republic, government, the Constitutional Court and departments within the bodies the members of which are elected by the National Assembly or any related general legal, IT, material-financial, accounting and administrative work.