Criticism mounts against Novalić over sale of government shares in Sarajevo Osiguranje

The Government of the Federation of Bosnia and Herzegovina has given the green light for the sale of nearly 45 percent of the government's stake in Sarajevo Osiguranje. This decision by the Government has triggered a wave of criticism from opposition parties and trade unions... The sale of shares is also opposed by SBB, one of the three ruling parties in the Federation. They accuse Federal Prime Minister Fadil Novalić of selling state property. They are demanding an urgent withdrawal of this Government decision.

Sarajevo Osiguranje is one of the largest insurance companies in Bosnia and Herzegovina, with nearly 400 employees and a long tradition.

The official buyer, as well as the price at which the Government will sell its stake in this insurance company, is not yet known, but trade unions believe that no matter the price, it cannot justify the sale of state shares.

Sarajevo Osiguranje has also issued a statement. For the management of this company, the sale of government shares to a new buyer will contribute to the further stabilization and strengthening of Sarajevo Osiguranje's market position. They are calling on their clients to remain loyal to the company.

The SDP, in a sharp letter to the public, states that the Government's decision to sell shares in Sarajevo Osiguranje is an "evident continuation of the robbery carried out by SDA and HDZ, in order to sell off state property for a pittance."

- The Social Democratic Party of BiH, at the end of last year, requested that the Parliament of the Federation of BiH immediately suspend all privatization processes until a new Privatization Law in FBiH is adopted. A new Privatization Law is necessary, given that the current one is non-transparent and disastrous, especially for the status of employees in companies being privatized – it was stated from the SDP.

The SBB demands that the Government of FBiH, "Prime Minister Novalić and Minister of Finance Jelka Milićević, urgently annul the decision on the sale of the Government's stake in Sarajevo Osiguranje by direct negotiation."

- If the Government of FBiH does not accept this stance of the SBB, we want the widest public to know that the SBB distances itself from yet another criminal privatization and that it will join the criminal charges filed by certain opposition parties – said the SBB.

Mahir Mešalić, DF representative in the Federal Parliament, stated that this is not the first time the Government has not acted responsibly towards state-owned companies. He said that the Government, led by Prime Minister Novalić, had previously sold shares in Fabrika duhana Sarajevo (FDS) as well as in Bosnalijek, and that they have "now started selling other strategic companies."

- Instead of the Government dealing with the recovery of struggling companies, they have left their workers on the street, and meanwhile, they are selling state-owned companies that generate millions of marks annually for the Federal treasury – Mešalić believes.

- In just the last few months, the Government has sold stakes in three extremely important state-owned companies. This practice must stop. No one has the right to sell state property – Mešalić said.

Zijad Jukić from the Trade Union of Sarajevo Osiguranje employees stated that they will do everything to block the sale of government shares in Sarajevo Osiguranje. He says that this state-owned company has finally started to achieve good results, and there is no need to introduce a new owner to the company now.

Novalić also responded to the accusations. He said that the Government has not taken any new action, but has only given the green light for the continuation of the implementation of the Privatization Agency's plan. He added that the Privatization Agency adopted a plan in 2016 to reduce the number of 52 companies owned by the Federation to 20 strategically important companies that should remain under majority federal ownership. The Government is to sell stakes in the remaining 32 companies, writes Patria.