During last two decades Montenegro has faced with the economic transition – most of state owned companies have changed ownership, and through privatization but also though alternative ways such as liquidation or stock exchange selling, were transferred to the private owners.
Key objective of the privatization process was to improve effectiveness and management of former state owned companies, following economical logics that a state can never be as good manager as the private sector.
However, the result of the privatization process if rather different than its objective. Vast majority of privatized companies were destroyed and today are not operational. Factories, hotels and industries are ruined while it’s workers are either fired or facing significantly worse economic situation compared to the previous period. In most cases fees and benefits for workers salaries are not paid for years.
Only those who bought former state owned companies faced financial benefits – upon privatization they have sold out companies’ real estates and other assets leaving employees in such condition where they either did not have a places to work or any assets to work with.
On the other hand the Government did not do a lot to ensure privatization contracts are followed and employees’ rights are properly addressed. Years back control of privatized companies did not exist, nor privatization contracts which were not followed by new owners were canceled. In addition, there were no proceedings against investors who were violating rights of employees.
Most of privatizations were burdened with corruption accusations and often workers of privatized companies were publically presenting evidence on how their companies were destroyed.
However, judiciary did not properly address these issues. Although number of corruption accusation in privatization were places by workers, media were constantly reporting on corrupt deals and civil society was submitting criminal appeals, no formal cases were opened by the prosecution. Therefore, there were no court rulings against those accused to be involved in corruption who have destroyed Montenegrin industry.
Those are the reasons why today, former strong Montenegrin industry is completely devastated. Best testimonies on privatization in Montenegro and on what has been left upon that process are presented in the publication.
Complete report you may download HERE (PDF)
