While management apologizes to Čović, Aluminij shares plummet

Aluminij workers announced on Thursday that they will protest at the beginning of next month in front of the HDZ building, and then in front of the FBiH Government.

As they announced after the meeting of the Trade Union Assembly, this decision was made after, seemingly, the first phase of launching Aluminij's foundry failed.

The trade union has two demands in case of Aluminij workers' layoffs: securing severance pay and paying pension and disability insurance for the workers. Aluminij's management stated in a brief statement that the company's recovery plan has not failed and that severance pay for workers is unquestionable, as is the money for pension and disability insurance, although they did not specify from which funds they plan to meet the trade union's demands.

However, it is evident that the workers have identified the main culprit for the situation in Aluminij. HDZ cadres, led by Dragan Čović, have been squandering the assets built by the workers for decades. During that time, the company's debts grew, while management salaries remained at the level of federal ministers... This continued until Aluminij's electricity was cut off due to millions in debt.

The HDZ tried to shift the blame to the FBiH Government and demand that it solve Aluminij's problem, without calling to account the minority shareholders or the Government of the Republic of Croatia, which is a significant co-owner of the Mostar company with 12 percent of the shares.

Aluminij's debt today exceeds 400 million KM, most of which is for electricity, workers are on the streets, and they are waiting for the outcome in uncertainty.

It is difficult to believe that the Financial Police and the Cantonal Prosecutor's Office in Mostar will prosecute those responsible for the collapse of the Mostar giant. Both institutions have HDZ cadres.

For example, although a legally independent body, the FBiH Financial Police operates within the Federal Ministry of Finance, headed by a high-ranking HDZ cadre, Minister Jelka Milićević. If the goal was to stop the non-transparent operations at Aluminij and prosecute those responsible, the Prosecutor's Office and the Financial Police would not have waited for the company to reach an unpayable debt of 400 million KM.

The collapse of Aluminij is a model of the functioning of ethno-national policies in Bosnia and Herzegovina. Last week, another company under the control of HDZ cadres was added to the list of devastated ones. The FBiH Government, at its last session, gave preliminary consent to initiate bankruptcy proceedings for Poslovni sistem Vitezit. The Federal Minister of Energy, Mining and Industry stated that Vitezit's bankruptcy was inevitable, as the Government has so far paid millions in compensation solely on the basis of workers' lawsuits. Even when the Government helped Vitezit with 18 million KM, there were no results.

In an attempt to save Aluminij, the FBiH Government will again talk with two new investors in September who have expressed a desire for strategic partnership in Aluminij. These are British and Chinese companies. The Chinese are already active in Bosnia and Herzegovina. The conditions offered by the new potential rescuers of Aluminij are not yet known.

At a time when the Government is desperately seeking salvation for the company, Aluminij loses value every day. The price of Aluminij shares on the Sarajevo Stock Exchange is constantly falling. While Aluminij's management apologized to Čović for alleged personal inconvenience after the company's shutdown, the price of Aluminij shares fell to 50 KM.

On the Sarajevo Stock Exchange on June 18, Aluminij shares were sold at 80 KM, while on Friday, August 23, Aluminij shares were sold at a price of 50 KM. In the last transaction, one hundred Aluminij shares were sold.

Poor management, lack of transparency and wastefulness, as well as political control of the company by the leading Croatian party, have brought the Mostar giant to the brink. Due to Čović's economic constitutionality and legitimacy, Herzegovina awaits September with apprehension.