Nermin Nikšić: I am afraid to even think what would have happened if Aluminij had been shut down in our time

Interview by Armin Aljović

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The President of the Social Democratic Party of BiH (SDP) and former Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, is certain that Aluminij in Mostar was destroyed by the policies of HDZ and SDA, and that it equally threatens the operations of other companies in the country.
In an interview with the Patria News Agency, the SDP leader uses the example of the shut-down Mostar giant to illustrate his points about where ethno-national division of society is leading citizens and the country as a whole, and why he believes such a political concept must be rejected as soon as possible if citizens in Bosnia and Herzegovina wish to build a better future.

The shutdown of Aluminij has caused fear among workers in other public companies in BiH. What is the current level of security for workers in other companies, for example, in mines or the defense industry?

- In the current situation, with this Federal Government, no one is safe, least of all the workers. The government led by the SDP did everything to improve the status of workers, especially miners. At that time, we achieved equalisation of the warm meal and holiday bonus for miners and electricity workers.
A big problem is the departure of young people due to the general insecurity that ruling parties at the state and entity levels persistently create. Employers are already warning of a shortage of skilled labor. This is news that should concern us. In such an environment, no one is safe anymore, and no one can guarantee an existential minimum upon retirement. Pensions for workers retiring under the new law have already been reduced. Unfortunately, the current authorities are doing everything to spread existential and political instability. The only way out of this situation is extraordinary elections, for which, unfortunately, there are no legal prerequisites.

Aluminij was shut down in just a few days. Only after that did political parties react, primarily from the HDZ. How is it possible for such a large company to collapse without the government taking steps months in advance to prevent the downfall of something called the "lifeblood" of Herzegovina?

- The HDZ reacted because its political positions were threatened. It is obvious that some individuals have only now realized that Aluminij is not a bottomless pit from which they can take at will. Also, I cannot help but mention the fate of former Aluminij workers who were shamefully prevented from returning to work in this company solely because of their names and surnames. This is a great injustice that is now also coming due, as they were mostly capable, skilled, and experienced workers who would certainly have contributed to the stabilization and increased productivity of the company. And this is a consequence of HDZ policy. During our term, we introduced a multi-ethnic management structure in Aluminij, started resolving and settling obligations towards these people, and insisted on preserving production and not increasing debt to suppliers, especially to Elektroprivreda. SDA and HDZ returned everything to the 'old ways', handing over the management of Aluminij 100% to the HDZ immediately after the appointment of the new FBiH Government in March 2015. Therefore, since then, HDZ cadres have had absolute control over Aluminij's operations, and the accusations that the situation in the former giant is the result of some conspiracy from Sarajevo are disgusting. Just as they posed for photos when taking over management structures and boasted that Aluminij was again in the "right" hands, they should now be held equally responsible for the situation in Aluminij.

You were the Prime Minister of the Federation. You know the system of functioning in that part of BiH. Who exactly is responsible for the collapse of Aluminij, by function and political responsibility?

- In the chain of responsibility that spans 25 years, it is difficult to point a finger at an individual or a single 'function' responsible for the current state of Aluminij. As I said, it is evident that this situation is the result of a series of bad political and business decisions. The ownership structure also influences responsibility, so responsibility is proportional to that parameter as well. Therefore, the issue is complex, and it is not possible to give a simple answer in terms of naming one 'scapegoat'. It would certainly suit, especially the HDZ, and probably the SDA, to try to absolve themselves of responsibility and the disastrous policy they have pursued regarding Aluminij for a full 25 years. The readiness and ability of the HDZ and SDA, and their Governments, to shift blame to someone else is astonishing. I am afraid to even think what would have happened if Aluminij had met such a fate in our time. It would have been a reason for armed conflict in Herzegovina. At that time, they did not absolve politics and the Government, but they asked us to repair the accumulated debts left by their managements. It was not enough then that Aluminij was operating, and today they boast that the fact that Aluminij operated at all over the past four years is an achievement. Unlike them, we simply did not allow the production process to be interrupted and the production cells to be shut down. Today, a few days after the interruption of production and the shutdown of cells, almost no one is mentioning it anymore. I sincerely hope I am wrong, but I think that almost a thousand workers and their families, and several thousand of their subcontractors, have been brought to a fait accompli today, and that they can hardly expect a positive outcome.
The Financial Police, at the request of the government I led, entered Aluminij for the first time. Based on the established and collected evidence relating to the operations of the company 'Aluminij' d.d. Mostar, the Cantonal Prosecutor's Office of HNK filed nine reports on the existence of grounds for suspicion of criminal offenses and perpetrators, which dealt with established irregularities by 48 (forty-eight) individuals, with a proposal to confiscate the identified illicit gains acquired through criminal offenses in further proceedings. The question arises as to how long prosecutors in this country will allow economic giants to fall silently without anyone being held accountable. Is that why the current government has been blocking the formation of the federal USKOK for five years?

The Government claims to have no insight into Aluminij's operations. The Management, however, claims that the Government should help Aluminij because it is its owner. Why is the Government the owner of Aluminij with 44 percent of the shares, and not the small shareholders who also hold 44 percent of the shares in Aluminij?

- The Government of the Federation of BiH is indeed the largest shareholder, and there is no dispute about that. All others have incomparably less. Now I will say something that even we did not manage to implement, to be completely honest, precisely because of the interference of politics in every pore of society. Namely, at the shareholders' meeting, management structures are elected, and each shareholder disposes of their shares. Do you know what happens then? The government with its 44% of shares elects 3 members, the Croatian government with its 12% elects one member, and the so-called small shareholders, who number between 9 and 12%, also elect 3 members, just like the government. We could not change the relationship due to obstructions and blockades that would have led to what Aluminij has experienced today. After the SDA government handed over all positions in Aluminij to the HDZ because, as they said in the government, it is an HDZ constituency, the "right" Croats arrived. Since then, there have been no more obstructions and blockades, and unfortunately, it seems there will be no more factories either. On the other hand, the claim that the FBiH Government has no insight into Aluminij's operations is scandalous and only shows the way SDA and HDZ function. They do not interfere with each other's electoral spoils. How is it possible to admit that you have no insight into the operations in which you own 44% of the shares? It is a reflection of neglect, carelessness, and complete irresponsibility. The FBiH Government is not absolved of responsibility by this. On the contrary, it increases their guilt for the current situation. I repeat, the government I led did everything to get the state "into" Aluminij. We succeeded in that, and it is not an HDZ constituency or an SDA stronghold to be given away and used for bargaining. On the contrary, it is the property of all citizens of the Federation, and the Government is obliged to take care of it, manage this property, and know what is happening with it. And when the current Government claims that it did not know what was happening in a company that was the backbone of regional development worth tens, or hundreds of millions of KM, that in itself is a reason why they should bear political, and probably legal, responsibility.

Aluminij's debt to Elektroprivreda HZ HB is almost 300 million KM. Elektroprivreda is also a company of the FBiH Government. Who will cover that debt?

- Public companies are managed by the Federal Government through its representatives. Before the assembly of Elektroprivreda Mostar, we warned the public and parliament that the Government intended to give consent to the representative of state capital in the Assembly to approve the supply of electricity to Aluminij without any collateral guarantees. At that time, we had information that the intention was to increase Aluminij's debt in this way and that at a convenient moment "saviors" would appear who, by buying the debt, would actually become the owners of Aluminij. It turned out that we were right, as we see how the first part of the scenario has unfolded. It only remains to see where the "saviors" will come from to become owners of the former giant for little money.
It would be good to look at the audit reports signed by the current Minister of Finance, who was also the head of the Audit Committee at "Aluminij" d.d. Mostar. The role of government representatives in registering the subsidiary company called Al trade is particularly interesting. Not to mention how frivolous the minister's statement is that she and the prime minister have a clear conscience because they spent public money of the citizens even though they knew there would be no concrete results. There is no more obvious example of abuse of position and negligent business operations in service. However, one thing is certain: the money did not evaporate. The debt of 290 million KM for electricity must have been converted into stocks of logs at Aluminij, and if they are not there, then it is clear how it was stolen.
If, even after this, no one is held accountable for what happened at Aluminij, I think we can hardly talk about the functioning of the state and its legal system.