The bankruptcy administration in agreement with the majority owners of solana Ulcinj since the introduction of bankruptcy managed to multiply the loss of the company with just a little over 270,000 euros when bankruptcy was introduced, to nearly eight million euros in losses at the end of 2013. The company also illegally was debted with the tacit consent of the state whose assets was used as collateral for loans that owners of Solana took at the First bank and CKB, showing business analysis of the company done by the Research Center of MANS. None of the relevant state institutions took any measures to stop further deterioration of this factory, nor to stop the premeditated scenario concreting valuable Ulcinj Salina.
After Eurofond in 2005, led by Veselin Barovic, a close friend of Prime Minister Milo Djukanovic, solana entered the Solana and purchased a starter pachage of action for around 800,000 euros, began a process of systematic destruction of the company through adverse business moves and borrowing loans. From 2005 to 2009 were performed several issues of company’s shares, after the share of Barovic’s Eurofond increased to 75% of the shares.
Each of these issues was justified by the need to invest in the process of salt production, and from 2005 to 2009 on that basis profit was made of nearly 6 million euros. Although year after year it was shown that money is not going into investments but rather is inappropriately spent, then the bankruptcy trustee Milorad Ikovic approved each of the aforementioned issue of shares, consciously working to the detriment of the company.
The bankruptcy trustee was familiar with the fact that the new owners continuously were taking loans from commercial banks, further burdening the operations of this company. As security for the loans that were taken at the First bank and CKB, the new owners put undermorgagealmost complete property this company, including the land over which they have no ownership right, but only the right of use for the exploitation of salt.
Biside that, as the money from the issues of shares and loans was non-purposly spent, the bankruptcy trustee has not taken any legal action in order to ensure a sustainable business of the enterprise. That is evidenced and data from financial reports of Solana that rhe Research Center of MANS analyzed.
In fact, despite the significant funds that have been poured into the company from borrowings and capital increase, the financial statements for the period from 2005 to 2013 show that there were not investments in the production. On the other hand, the accumulated losses of Solana increased steadily, and from 270,000 euros in 2005, rose to 7.9 million euro, the amount stated at the financial report for 2013.
It is particularly worrying that almost all credit debt of Solana is based on mortgages on the pools of salt over which Barovic’s Eurofond never had ownership right, but only right to use for the organization of the process of production of salt. Thus, at the over 13 million square meters of land which is state-owned mortgage several loans are booked that owners of Solana took from the First Bank and CKB.
The process of registration of mortgage on real estate is a process that in the Real Estate Administration is realized on the basis of evidence of ownership of the property that is given as a pledge and morgage agreement, which raises the question of how the board of trustees and Eurofond were provided a loan and registration of the mortgage on the property that is not owned by them.
This text is made with the support of the European Union within the project “Zero tolerance to corruption”. The contents of this article is the sole responsibility of the Network for Affirmation of Non-governmental Sector – MANS, and opinions contained herein shall not in any case be considered positions of the European Union.
The bankruptcy management continues to offer state property for sale
Despite the fact that the company only has a right to use, not ownership rights of the land of Solana Ulcinjm, bankruptcy management continuously since 2012, announces its sale, completely unhindered by any competent public authority. The first advertisement for sale was published in January 2012, when the assets Solana offered at a starting price of around 257 million euros. After that, the assets of the company unsuccessfully were offered for sale thirteen times, and with each new tender price was lowered. The last advertisement with no responce, was released in October this year when Solana offered for 149 million euros.
The fate of Solana Ulcinj remains uncertain
Leasing of Solana Ulcinj to the public company “National Parks of Montenegro” is only half a solution that is limited in time and followed after domestic and international pressure on the Government to finally take action on the issue of the protection of valuable Ulcinj Solana, believes in MANS. For now, there is no precise information on what will happen after the contract expires with the National Parks. The final solution of protection of this area will require the Government to determine the initiatives in order to put this area under special protection regime and the proclamation of natural monument.
