Novalić is ready for everything except working for the citizens: Immediately stop the new wave of predatory privatization

The Government of the Federation of Bosnia and Herzegovina, under the pretext of the infamous Reform Agenda, is implementing the worst and most non-transparent form of privatization of state-owned enterprises. SDA-SBB and HDZ are trying to first completely devalue, and then sell off part of the state-owned companies owned by FBiH as cheaply as possible, without setting any conditions for future buyers.

More precisely, Bakir Izetbegović and Dragan Čović, with the help of their pawns and executors in the Federal Government, want to sell off the assets of FBiH in companies, most of which are profitable and successful, at a giveaway price, announced the SDP BiH, reports the Patria news agency.

The Social Democratic Party of BiH therefore demands the urgent scheduling of emergency sessions of both Houses of the Parliament of FBiH so that the public can get answers to numerous questions concerning the sale of state-owned enterprises at a giveaway price and the complete neglect of the workers of those companies and their assets. Also, we call on the competent prosecutor's offices to react as soon as possible to numerous violations of the law and prevent the occurrence of irreparable damage to all citizens of FBiH.

Fadil Novalić, who is obviously ready for everything except working in the interest of citizens, assured the public that the Government is negotiating with numerous and well-known global companies that are queuing up to buy companies owned by FBiH. Unfortunately, the truth is completely different.

The first case is Agrokomerc, which, from the initial and estimated price of 25 million KM, was sold at the beginning of April 2016 for 2.2 million KM to the Development Bank of FBiH, after other so-called buyers “withdrew” from the sale. The public still has no information on what happened next with Agrokomerc and its enormous assets, because the federal authorities are not providing any information.

Then it was the turn of Sarajevo-osiguranje, the largest insurance company, not only in the Federation but in the whole of BiH and an absolute market leader. In June this year, after a telephone session, the FBiH Government announced that it was selling its share package via the stock exchange at a price of 12.99 KM. Even then, the Prime Minister claimed that there was a renowned insurance company interested in buying shares of Sarajevo-osiguranje.

After not a single buyer showed up at the scheduled sale, the Government further lowered the price to 10.39 KM and again no one showed up, which only confirms how unserious and irresponsible the Prime Minister's statements are. Here we must emphasize that Sarajevo-osiguranje, in addition to being the leader in its branch, owns a large number of properties throughout the country, which themselves are worth several times more than what the Government is asking for it.

After that, the Government attempted to privatize Bosnalijek d.d. Sarajevo, i.e., the 19.2 percent stake owned by the Federation of BiH. Again, the FBiH Government set a minimum price of 15.5 KM and put the shares up for sale via the stock exchange, and again no buyers appeared, certainly counting on the Government to lower the price in the second round, as in the case of Sarajevo-osiguranje.

The case of the Sarajevo Tobacco Factory, where the FBiH Government has a 39.9 percent ownership stake, is also very current. The FBiH Government set a price of 83.5 KM per share, although the nominal value is 174 KM. We remind you that, by order of the FBiH Government, in which the SDP BiH had a majority, the Financial Police determined that the then and current management of FDS had committed numerous criminal acts and caused multi-million mark damage to that company.

Next in line is Igman d.d. Konjic, currently the best and most profitable company in the defense industry in BiH. The company, which experienced a revival during the period of the Government led by the SDP, in which Igman d.d. repaid all debts, contracted work for the next several years and employed nearly a thousand new workers, overnight became interesting to numerous speculators who, apparently, have allies within the ruling SDA-SBB coalition.

In order to be able to quietly squander the assets of the Federation in these companies, SDA-SBB completely handed over Aluminij Mostar to Dragan Čović and HDZ. When it was announced that the Government would sell its stake by March 2017, the share value fell from 1,000 (one thousand) KM, more precisely, it was deliberately lowered to only 73 KM!

In each of these cases, the Government of the Federation of BiH never even mentioned the workers, nor did it even insinuate that it would set any requirements for buyers in terms of investment and retaining workers. There is not a single word about the former laid-off workers of Aluminij and their right to compensation.

No, this ruling structure is not interested in that at all and, in fact, never has been. Their only goal is for people very close to them, or even themselves personally, through certain companies, to buy up and plunder what they haven't managed to so far, for as little money as possible.

We have seen this scenario many times before and we all know what privatization directed by national parties looks like. Workers without jobs, on the street, companies looted, ruined and closed, while the state is mostly left with huge debt. There are countless such examples from the past and we must not allow them to be repeated.

The public and citizens of the Federation of BiH must know that a new wave of looting of the best and most valuable assets we have, which have been painstakingly created for decades, is underway. The SDP will do everything in its power to prevent this, but for that we need the support of all citizens, trade unions and civil society.

We do not want to give lessons to everyone and anyone, but we cannot help but wonder what would happen with the numerous "independent" analysts who tore apart the previous Government for the mistakes we made, but also for not giving in to blackmail to limit workers' rights, for increasing pensions only twice by five percent each time, for investing ten times more in mines than all previous governments combined, for repaying more debt than we took in loans, for building 20 kilometers of highway per year, for our companies building the most modern tunnels and viaducts, for reviving the defense industry, for conducting a revision of the veteran population trying to restore dignity to the ordinary demobilized soldier...

Once again, we emphasize that it is unacceptable for the assets of all citizens of FBiH to be destroyed and sold off in this way, and therefore it is high time these processes were stopped, the statement reads.