Čičić warns: State companies managed by politics are doomed to fail

Professor at the Faculty of Economics in Sarajevo, Muris Čičić, warns that there is a large number of state-owned companies in the country that have been operating at a loss for about twenty years, and which are practically difficult to bring back to profitability now.

For such a situation, Professor Čičić told the Patria agency, politics is solely to blame. The authorities, he explains, did not consult with economic experts regarding the fate of state-owned companies, but made decisions on their own initiative, which most often proved disastrous for the fate of the companies and workers.

Among the biggest loss-makers in Bosnia and Herzegovina are Aluminij from Mostar, Elektroprivreda HZ HB also from Mostar, then Sarajevo's GRAS, several factories from Tuzla, as well as a number of other companies in the country, which owe millions of euros to workers and suppliers.

- It is impossible for a company not to pay salaries for three months and then not go into bankruptcy or some other emergency situation. Unfortunately, this has happened in many cases here, and these companies are now on their knees - said Čičić.

He added that destroyed companies are most often managed by politics, which is a poor manager and which were bound to fail sooner or later.

- That is why privatization exists, which has the role of pulling the company out of the claws of those in power. Unfortunately, in Bosnia and Herzegovina, this has often not succeeded, because we have bad laws and a judiciary - said Čičić.