Bukvic and BBI are selling strategic resources of BiH: Who is the ultimate beneficiary?

When the department store 'Sarajka' was bought in the process of privatization, some wealthy folks from the Gulf registered a company in Sarajevo in 2006, under the name 'BBI Leasing & Real Estate' and subsequently created a new concept called 'BBI Center'.

The BBI Center spread on 43,000 m2 was envisaged as a multipurpose facility. Today the center accommodates shops, offices, warehouses and underground garages.

The largest investment of the said company in BiH is that exact center, which construction cost its owners 70 million KM. Besides this building, BBI Real Estate has built and is still building several apartment buildings – one by the Sarajevo Brewery, Panorama Sarajevo, to name just a few.

Originally registered as BBI Leasing & Real Estate, in 2009 the company changed the name to BBI Real Estate Sarajevo.

It is owned by the Islamic Development Bank (99.7%) and BBI (0.03%). Its capital is 40 million KM.

The Islamic Development Bank is a multilateral finance institution founded by the members of Islamic Conference (OIC) 43 years ago.

Previously, BBI Real Estate intended to buy the hotel Holliday Inn in Sarajevo center. Exactly year ago, on 16 June 2015, new director of the hotel and 10 of his associates were arrested under suspicion of tax evasion and encouraging prostitution. Those events had only further exacerbated already difficult situation around the hotel. The question is if the entire scandal was only used to quickly devaluate the worth of one of the most popular hotels in Sarajevo. And now all of sudden, there are talks about BBI Real Estate's intention to buy the hotel. The money would come from Islamic, mostly Arab sources.

Based on his very close relationship with BBI bank Director Amer Bukvic, Bakir Izetbegovic, the member of BH Presidency can be often seen in the BBI building. Some say that Bosniak politics is tailored in this very building, that ambassadors and ministers make deals there.

'Panorama Sarajevo' stands for a group of apartment buildings situated in the city center above Bascarsija. The project was financed by BBI Real Estate. The apartments are offered for sale to local people. So this is not about 'serious investments', it is rather about quick profits which usually dealing with apartment buildings can give, particularly when one is luck to get building license on attractive locations.

This trading of apartments presented as 'Islamic investment' may suggest that Agrokomerc could be bought with the alleged BBI Real Estate capital. Just like credibility of Holiday Inn was ruined beyond repair exactly a year ago, in a similar fashion buying of Agrokomerc is being played out – the company value drops down, serious buyers are pushed out.

Very soon it will become clear whether this is just a common purchase of land which is the greatest asset of Agrokomerc. With a dramatic moving out of people from and around Kladusa, there are speculations that Agrokomerc may end up in the hands of Arabs.

Unfortunately, everything that has been lately going on in relation to Agrokomerc suggests that somebody plans to sell it below any reasonable price. Are we talking about the people who have abused their political power by making decisions about important strategic resource of this country outside of institutions?

One must analyze the legal basis on which fertile agriculture land gets sold and what can we all do to protect higher interests of this country. It seems that we are talking about the people ready to sell their own country for sake of personal gain.

Longtime ago the esteemed professor Esad Durakovic warned against this kind of 'investments' that essentially rob BiH of its resources. Even future generations will feel negative impact of today's doings.

The real intentions of BBI Real Estate will become clear when investment plans in food industry and price for Agrokomerc become public.