Travel agency ‘'Putnik'', one of the leading cases of a company devastated by privatization, has been ended recently, in the most unlikely fashion. The facts are, as follows.

In May 2003, ‘'Putnik'' was sold at the tender to the American company ‘'Uniworld'' owned by Mr. Srba Ilic. The very selection of the most favorable bidder indicates that ‘'lobbying'' has been somewhat exaggerated than envisaged by the Decree on tender sale, namely, a provision of the sales contract according to which the Privatization Agency openly suggested Mr. Ilic to contract following auditing companies for the supervision of fulfillment of obligations: ‘'Deloite and Touch'', ‘'KPGM, PWHC, ‘'Ernst and Young'', the Economics Institute.

Several months after taking over of ‘'Putnik'', in June 2003 at the very end of the term of office of Mr. Zivkovic's Government, Mr. Ilic met with Prime Minister, Minister of Finance, Director of the Agency, and Minister for Privatization, demanding to be exempt from obligation of presenting bank guarantee for fulfillment of investment. Also, to be exempt from sales tax starting from the moment he took over ‘'Putnik'', to have his debts written off, to have extended deadline for fulfillment of investment for a year, to be allowed to use ‘'Putnik's'' property as a mortgage, as well as to increase the percentage of the sale-free property over 10 %. Prime Minister and other ministers accepted the demands, Minister Djelic informed the Government that tax should be written off, however, the new Government assumed the office, whereas arrangements with the previous Government went downhill.

Along with the companies ‘'Jugoremedija'' in Zrenjanin, ‘'Nissal'' in Nis, and ‘'Hempo'' in Belgrade, ‘'Putnik'' has been one of the companies repeatedly mentioned by Minister of Economy, Mr. Marsicanin, as a clear example of an unsatisfactory efficiency of Mr. Vlahovic's Ministry, announcing, moreover, cancellation of contracts. Despite of the promised rule of law and honoring of privatization contracts ‘'Jugoremedija's'' workers-shareholders are still without a proper solution, ‘'Nissal'' and ‘'Hempo'' are hardly ever mentioned, while Mr. Bubalo's Ministry ‘'cooked up ‘' a decision for ‘'Putnik'', a text-book example of an ignorance labeled ‘'keep off, even after receiving a kickback''. Moreover, besides numerous violations of the contract by ‘'Uniworld'', i.e., sale of the property and inadequate trading, the Government has not canceled the contract with Mr. Ilic; allowing him to sell ‘'Putnik'' instead, bit by bit, or in bulk , to a new buyer they are to find in a joint action. If this corresponds to a punishment for contract violation, what would a reward look like? It is clear that Mr. Ilic has been incapable of fulfilling the contract, and that this has been yet another sale of immovable property in the name of privatization.

Taking into account, moreover, that the previous Government had no time to meet Mr. Ilic's demands, allowing partial sale of ‘'Putnik'', the chances are that, side by side with the new Government, a way to sell the complete contract might be found.

Ms Verica Barac,
President of the Council