Bosnia’s Leading Ammunition Producer “Igman” Faces Comprehensive Audit Amid Operational Crisis

The ongoing crisis at Igman d.d. Konjic, one of Bosnia and Herzegovina’s key ammunition manufacturers, is entering a decisive phase. The company’s Supervisory Board has scheduled an extraordinary shareholders’ assembly for October 1, 2025, at 10:00 a.m., where the main agenda item will be the appointment of an independent external auditor to conduct a comprehensive financial and operational review covering the period 2021–2024.

This move is part of a broader government-led initiative aimed at restoring confidence and transparency across the defense industry sector in the Federation of Bosnia and Herzegovina (FBiH). The Ministry of Energy, Mining and Industry previously announced plans for in-depth audits across all state-owned defense companies to identify irregularities and improve governance.

According to Minister Vedran Lakić, these audits are designed to shed light on previously unexamined areas of company management and accountability:

“The extraordinary audit will allow us to examine everything that was previously overlooked. No one will be exempt or protected. Only through truth and responsibility can we ensure stability and trust in such a strategic sector as the defense industry,” Lakić stated earlier.

The decision signals the government’s intent to demonstrate that Igman and other state-owned arms manufacturers are prepared to embrace transparent operations and pursue long-term stability in a sector critical to national security.

Production Halt Highlights Supply Chain Vulnerabilities

The announcement comes shortly after Igman completely halted production in early September 2025, following Serbia’s temporary export ban on gunpowder—a key raw material for ammunition manufacturing.

For years, Igman relied almost exclusively on supplies from Barutana Lučani, a Serbian propellant factory. The recent embargo exposed this dependency as a major strategic vulnerability. As a result, the company sent all employees on mandatory collective leave starting September 2, while production facilities remain idle pending new supply agreements.

This is the second production stoppage in just a few months due to the same issue. Analysts argue the company should have diversified its supply chain earlier to avoid complete operational paralysis.

Financial Performance Under Severe Pressure

The production halt adds further strain to Igman’s already deteriorating financial position. In the first half of 2025, the company reported a loss of 19.8 million BAM, while revenues fell by 24.3 million BAM, dropping from 89.3 million to 65 million BAM year-over-year.

These figures underscore the urgent need for restructuring and strategic reforms, both internally and across Bosnia’s broader defense manufacturing ecosystem.

Strategic Sector at a Crossroads

With a growing emphasis on self-sufficiency in ammunition production across Europe, Bosnia’s defense industry faces critical decisions. The outcome of Igman’s upcoming audit could shape not only its future but also the credibility and competitiveness of the country’s entire state-owned defense sector in a rapidly evolving geopolitical landscape.