The difficult financial situation Bosnia’s only aluminium producer has found itself in is the result of blackmail, bad management and political interference with the business activities of a company that once was successful, the newly elected Bosnian Croat Presidency member, Zeljko Komsic, said on Sunday.
‘Aluminij Mostar’ has been experiencing financial difficulties for years due to increasing production costs and low aluminium prices and at the end of September its debt was worth nearly 350 million BAM.
Government officials in Bosnia’s Federation (FBiH), one of the two semi-autonomous entities in the country, said they will meet to discuss what can be done to help Aluminij on Friday, but Aluminij’s managment said that the company cannot wait until then.
The company was to be shut down from the power grid on Sunday at midnight, and should this happen, it would practically mean the death of the aluminium producer as putting it into operation again would cost too much money, Aluminij’s management said in a Saturday statement, asking the FBiH Government to suspend the electricity suppliers decision.
Shutting down Aluminij would be detrimental to the livelihood of 900 of its employees and their families, but also potentially to their business partners.
Komsic said in a Sunday statement that the reason for the current state of Aluminij lies with bad contracts company management has been making regarding the purchase of raw materials needed for production and expressed suspicion that funds had been syphoned out of the company in this way.
He also directly accused the Croat Democratic Union (HDZ), a party which is in fierce opposition with Komsic and his Democratic Front (DF), of being responsible and called upon prosecutors to investigate.
“Whatever the case may be, the current state in Aluminij requires not only an intervention by the FBiH Government, but also by police and judicial bodies,” Komsic stressed. “I support efforts by all those who want to save this company.”
“Politics has been destroying industrial giants enough until now throughout our country,” he concluded.
Meanwhile the company received a 24 extension but will be shut down afterwards.
Members of the Independent Union of Aluminij’s employees blocked on Sunday an electrical substation near Mostar to try prevent being taken off the grid.
“This is a symbolic blockade made as an appeal to the FBiH Government. Aluminij has only got one day left,” Aluminij’s acting director, Drazen Pandza told N1.
The next 24 hours are a chance for the Government to find a solution for the company.
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