KS Government Proposes Solution to Problems: Is There Hope for GRAS?

(Patria) - Regarding the problems and the current situation in KJKP GRAS d.o.o. Sarajevo, the Ministry of Transport points out in a press release that the biggest problems in the operations of KJKP “GRAS” that arose in the previous period (mostly from 2009-2016), and which threaten the operations of this company and the provision of the public transport service in Sarajevo Canton as a public utility of public interest, are the company's debts to the Indirect Taxation Authority of Bosnia and Herzegovina, in the approximate amount of approx. 33,660,000 KM.

"Furthermore, the company's debts to the Tax Administration of the Federation of Bosnia and Herzegovina, the company's debts to its employees who have sued the company due to labor disputes in accordance with the collective agreement for the utility sector, in the approximate amount of approx. 20,000,000 KM, the resolution of lawsuits filed by KJKP “GRAS” against the defendant Sarajevo Canton, the reduction of the number of employees and the adoption of an optimal organizational structure of the company through restructuring, insufficient number of vehicles, poor condition of the tram tracks, inadequate fare collection and public transport management system, insufficient planning of funds in the Budget of Sarajevo Canton for the transport of subsidized categories of users and coverage of losses from previous years, and the problem of the absence of a general carrier license, which KJKP “GRAS” cannot renew due to tax and contribution arrears", the Ministry stated.

The Government of Sarajevo Canton and the relevant Ministry of Transport have taken a series of measures and actions to resolve these problems in the previous period, especially after the blocking of all KJKP “GRAS” accounts, which occurred on August 20, 2020.

"Discussions have been held and proposed solutions have been defined with the Indirect Taxation Authority, the Tax Administration of the Federation of BiH, the Trade Union of KJKP GRAS employees, the lawyer representing the employees who sued the company, international financial institutions, and all other institutions of Sarajevo Canton that can help in resolving the accumulated problems.

The KS Government will propose a way to resolve these problems by addressing urgent issues and those that concern the resolution of this issue over the next 10 years.

The proposed solution includes settling obligations to the Indirect Taxation Authority of BiH, the Tax Administration of the Federation of BiH, and the company's employees who have sued the company and whose court rulings have currently blocked the accounts through which the company operates.

Also, for a longer period, the KS Government has been resolving issues related to improving the conditions for providing public transport services through the reconstruction of the tracks, the procurement of new trams and trolleybuses, and the implementation of all other projects that should improve the urban image of Sarajevo Canton.

In the coming weeks, we expect the adoption of the proposed Agreement on resolving problems in the operations of KJKP GRAS, which will be submitted for consideration to the KS Assembly, as the founder of this company.

We hope that this Agreement will be the first step towards the permanent recovery of the company", the press release from the Ministry of Transport states.