Fabrika duhana Mostar goes bankrupt: Police investigated, but there was no help, capital "melted away"

The Federal Government, led by Prime Minister Fadil Novalić, today accepted the report of the Federal Ministry of Agriculture, Water Management and Forestry on the state of the economic company Fabrika duhana Mostar d.d. Mostar, and tasked the Tax Administration of FBiH - Cantonal Tax Office Mostar to, as a creditor, file a request for the initiation of bankruptcy proceedings in Fabrika duhana Mostar, writes the Patria News Agency.

This marks the end of an agony that has lasted for many years. We remind you that, based on the findings of the special auditor of the Federation of BiH back in 2005, the Federal Financial Police, on the order of the BiH Prosecutor's Office, conducted a detailed inspection at Fabrika duhana Mostar.

They discovered numerous irregularities in business and suspicious multi-million losses at the time. This inspection was a harbinger of FDM's downfall.

Otherwise, in 2002, the capital in FDM was 22.1 million KM, and by the end of 2005, it had simply dropped to 15.8 million KM, without anyone questioning what was happening in a company in which the state holds 67 percent ownership.

At the half-year mark of 2005, FDM's total liabilities were 2.88 million KM. Instead of a turnaround, losses only piled up. Thus, in 2006, they incurred a loss of 2.6 million KM, and in 2007, another 4.56 million KM in losses. FDM has not been operating since 2008.