MANS invites the Committee on Anti-Corruption of the Montenegrin Parliament to urgently consider the application by the NGO Stecajci, in cooperation with MANS, submitted to this working body on October 3rd of last year in connection with the operation and financing of bankruptcy trustees in Montenegro, in the light of so far conducted bankruptcy procedures which destroyed the Montenegrin economy.
Specifically, from the Committee for Anti-Corruption with the initiative is requested to hear the Minister of Justice Dusko Markovic, Minister of Economy Vladimir Kavaric, President of the Commercial Court in Podgorica Blazo Jovanic, and President of the Commercial Court in Bijelo Polje Muzaref Hadzajlic, and to initiate the procedure of amendments to the Law on Bankruptcy and secondary legislation in order to professionalize function of bankruptcy trustee, and to stipulate that bankruptcy trustees receive a fixed monthly work compensation, which can not be more than two and a half of the average net wages in Montenegro on a monthly basis.
In fact, the bankruptcy trustees who are engaged in companies that are bankrupt so far have been persons who have passed the professional exam and were constantly engaged in other jobs. Rather than to take care of companies’ jobs and represent the bankruptcy debtor, the bankruptcy trustees are only partly engaged in this business – which negatively affected companies in bankruptcy, especially when dealing with companies that were owned by the state.
Under the current system, the bankruptcy judge determines the amount of compensation to the trustee in accordance with the Law on Bankruptcy and the Regulations issued by the Ministries of Economy. Thus, to the bankruptcy trustees are reimbursed travel, telephone expenses, office supplies, costs of engagement of experts for the purposes of bankruptcy proceedings, and are accounted to them and very generous awards, which often can amount to tens of thousands of Euros.
Instead that the companies are slowly revitalized or to liquidate their rich assets and to pay off debts – mostly happened the opposite, ie. after the bankruptcy the companies slowly went into even greater problems. Because of disengagement, lack of commitment and corruption of bankruptcy trustees, after bankruptcy the companies ended up with estranged action and less bankruptcy estate because the bankruptcy trustees did not complied with the legal obligations and they did not take measures in order to ensure the bankruptcy estate to preserve its value. Also, the bankruptcy process is delayed by more than two years – which gradually diminished the value of the companies.
In this way, from the bankruptcy proceeding only benefit had the bankruptcy trustees who received enormous fees, often tens of thousands of Euros, as well as the privileged individuals who were able by intervention of the bankruptcy trustees to but valuable Montenegrin economy for almost nothing and then to destroy it. On the other hand, thousands of workers from once powerful Montenegrin factories are forced to leave on the streets with no severance or shares of companies that they have put on their feet by their work. Also, to the powerless worker wages are owned, and years of service are not connected so they can not achieve even the right to a pension.
In order to prevent such a practice is necessary to professionalize the function of trustees, in order those persons to be completely dedicated to preserve of bankruptcy assets, and to restore bankrupted companies, which is why we requested from the Committee on Anti-Corruption to urgently initiate a process to amend the law and to adequately regulate the position of bankruptcy trustees. Thus, with the initiative was proposed to limit the salaries of bankruptcy trustees to a maximum of two and a half of the average net wage in Montenegro on a monthly basis, and only in cases when it comes to bankruptcy proceedings of large companies. In all other cases, the prescribed fees would be considerably less.
Therefore, we believe it is particularly important that the Committee on Anti-Corruption on this topic meet as soon as possible, especially having in mind that the Government has independently initiated the process of amendment of the Bankruptcy Law, whose draft is currently at the public hearing. Now is the right time that the Committee gives to the Government clear guidelines and suggestions in what direction amendments to the Law on Bankruptcy should go, to ensure that the bankruptcy proceedings finally start to be taken in favor of the public interest, and to prevent totally unacceptable enrichment of bankruptcy trustees, especially in situations when they receive rewards for the destruction of companies whose bankruptcy proceedings they conducted.
We invite Committee on Anti-Corruption to urgently meet, to hold another hearings of competent officials, and to define a set of solutions that would be incorporated in the text of the amendments on which currently is working the Government of Montenegro, and all with the aim of ensuring that the bankruptcy procedures are fair and legal, and in interest of all Montenegrin citizens, workers and companies.
MANS
