Mr. Milos Filipovic, Director of Valjevo's Baking company ''15 September'', is keen on keeping a low profile, which is why the company was privatized almost without worker's participation in stock ownership. An estimated value of the company was more than million euros, and, in 2002, it was sold to the sole buyer at the auction, i.e. Consortium of the employees for 227 thousand euros. The company has always been creditworthy: modern technology, new machines, substantial arable land, buildings, warehouses, silos, production lines for bread and buns, considerable vehicle stock.

Mr. Filipovic and his friends established a Consortium of 82 employees, headed by Mr. Filipovic and Mr. Slobodan Djukic, then Minister for Commerce and Tourism, one of the officials of Nova Demokratija party, never an employee of the company ''15 September''. Nevertheless, the stockholders' share puts in question the legality of the privatization process– Mr. Djukic alone holds 35 % of the shares, and after adding shares from Mr Filipovic and close associates, it is obvious that only seven persons hold 58 % of shares, and 300 workers the rest. After the auction, employees realized that they were tricked. That, however, was merely an introduction.

Mr. Filipovic failed to advise small shareholders to buy the second part of the shares on hire purchase in five annual instalments, instead he kept this advantage to the consortium, he even asked the small shareholders to declare that they did not want to participate in the increase of capital stock. To the Agency for Privatization, he reproted the equipment to be more than 50 years old, which is why workes brought criminal charges. Prior to the privatization, he failed to report eight buildings to the Agency, whereas it is to be suspected that they might be sold in order to pay for the increase of capital stock (warehouse in Lajkovac is sold for almost the same price as the price paid for the company). He did not invest 13 million dinars, instead he offered to build cheaper gas boiler – room.

Also, he exercises «Staljin' s purges» on the workers (workers were forced to disown themselves from Mr. Kuzmanovic, President of the Union, who was fired). Immediately after the privatization, 160 tons of wheet were found missing, the value of which exceed the selling price of the company. In media, the scandal was associated with a member of the consortium, Mr. Stanko Subotic's , i.e. Cane' s kin. The Agency is aware of the embezzelment, but shows readiness to help the buyers. The Agency prolonged the dead line for the presentation of the bank guarantee two times, and, afterwards, changed this obligation into « presentation of payment evidence», however, it is not clear where the "evidence" is, nor would anyone take actions against the illegal privatization.

President of the Council,
Ms Verica Barac