Phantom company from Italy (not) conquering the defense industry of FBiH through GINEX

SARAJEVO, (Patria) - The circus directed by the Government of FBiH regarding the review of the business report of UNIS GINEX for 2020 has finally ended. Representatives of state capital, who first rejected the report, adopted it upon reconsideration. Minister of Industry and Energy Nermin Džindić had previously told Patria that the chances of such an outcome were almost nil because he saw nothing new that would suggest the business report should be supported. At that time, Džindić agreed with some of the objections of minority shareholders who claimed that GINEX's profit was being reduced through intermediary contracts, which for one deal amount to a staggering 400,000 marks, but also through the prices of GINEX products, which are significantly lower for some buyers than their real market price.

Nevertheless, the report was adopted, thus saving the management, and according to Patria's well-informed sources, the real reasons for the entire ordeal were GINEX management's refusal to cooperate with a suspicious company from Milan represented by a certain Jelena. The company was founded with a capital of 50,000 euros, and its owners are unknown to the public. The company's authorized representative is based in Belgrade, and Patria's sources close to the cabinet of Minister and Prime Minister of FBiH Fadil Novalić say that Jelena is a frequent guest.

The minister denies such claims and briefly replies that there is no cooperation with the mentioned company, nor should there be. From his response, one could infer that the minister knows what it is about, but he did not want to share more details with us. From sources close to GINEX management, we learned that in case of a business arrangement with the Italian company, GINEX would buy casings and bullets, which is madness considering that this is a product that was produced in GINEX even during the war.

GINEX Director Munevera Fočo was not available for comment on this topic. She answered the phone and said that we could not take her time.

- Thank you and goodbye, she briefly replied and hung up.

The responsible minister did not comment this time on suspicions that GINEX loses between six and eight million marks annually due to poor pricing policy, as well as large intermediary contracts. He told Patria that the report was adopted so that GINEX could apply for credit funds. We did not get an answer as to why GINEX would need loans when it generates millions in profit.

Questions also remain unanswered as to why GINEX's huge funds are spent on intermediary contracts, even in situations where our company is arranging deals with other state-owned companies from abroad. Minister Džindić publicly promised to check one of the intermediary contracts worth 400,000 marks, but he has not yet informed the public about the results of the check.

What is certain, at least according to the minister's claims, is that GINEX will not enter into an investment for drone production. Grant funds were even approved for this purpose, but it was abandoned. In fact, it is questionable whether there was a real intention, as there was no adequate technical documentation and study. There were also plans for GINEX to build a gunpowder factory, where cooperation with the Serbian defense industry was discussed, although Norwegians, who produce the best gunpowder in the world, expressed interest. The story about the gunpowder factory remained a dead letter on paper, and the facts indicate that GINEX, like most of the defense industry in BiH, has never been integrated with NATO industry. Instead, BiH has focused on cooperation with exotic countries, which essentially suits intermediaries and arms dealers the most.

The situation in GINEX best shows that the stories about the great leap of the defense industry are merely paraphrased. This company alone still produces only 65 percent of the market's demand for its products, and it is considered one of the most profitable in FBiH. Currently, it seems that middlemen and arms dealers benefit more from the defense industry than the state does.