Montenegro: Accusation’s against A2A and Gov; 130MEUR debt off written since privatization

30. July 2014. / SEE Energy News

Since 2007th until today, the Montenegro Government’s through two recapitalizations, at the expense of the state budget, released the Electric Power Industry of Montenegro EPCG from debts amounting to a whopping 131.5 MEUR, which speaks enough about the extent of catastrophic policy that leads to the detriment of all citizens, and in the interests of the alleged strategic partners.

In fact, as point out MANS NGO report, the recent decision to release EPCG from tax debt of 45 MEUR and thus the state increases its share in the energy company by two percent (from 55 to 56.9 percent of the share capital), for how long simultaneously should be reduced the share of Italian partners A2A (from 43.7 to 41.7 percent of the capital), is not the first decision on the recapitalization by which the government brings the burden to all citizens.

“In mid-2007th , when the government intended to privatize EPCG, on the grounds that the company should get rid of old debts to make it better sold, it implemented a recapitalization worth 86.5 MEUR, which increased the company’s capital from 905 MEUR to nearly 992 MEUR, on account of the EPCG release from earlier debts. It was mainly the so-called pre-sanctions debts arising from loans from the time of socialist Yugoslavia, which were used for the construction of hydropower plant Piva, TPP Pljevlja and development of energy networks in Montenegro. These loans were not repaid during the “nineties war”, and after the war ended it was agreed the dynamics of further payments”, state in MANS.

According to them, even though in the state budget on this basis was made a minus of 86.5 MEUR, the Government earned slightly more, or about 96 MEUR in 2009th from sale of its part of the shares to the Italian A2A.

“One of which the greatest benefit had only the First Bank of the prime minister’s brother Aco Djukanovic, as the Italian partner has kept most of the money in the bank for five years, thanks to which it maintains its liquidity.

Bearing in mind that the latest decision on the recapitalization, which got yesterday the green light at the Shareholders’ Meeting of EPCG, the state budget will lose another 45 MEUR how much the energy company owes for taxes and contributions, it is clear that citizens pay a guild for the umpteenth time, through whose backs offsets the burden of the government’s bad decisions”, say in MANS.

As they add, up to today the government has been consistent only in resigned protection of the interests of the alleged strategic foreign and domestic investors, why the citizens filled the empty state budget in the manner that they increased and introduced new taxes, other taxes, pensions were frozen and similar.

“On the other hand, about what the Government officials do not speak at this moment is that in the fall highlights a five-year contract with A2A, after which it must decide whether the Italian partner remains in the company or leaves it, and under which conditions. With regard to the current practice of the Government relations with the Italian partner, if A2A remains in EPCG, it should expect a privilege that will be offset to our burden, and if it decides to leave the question is who will purchase its shares package. In connection with this, and knowing that people until today pay all suspicious privatizations and arrivals of the Government foreign partners, of which only the Aluminum Plant Podgorica swallowed several hundred MEUR, it is justified concern that the citizens could pay much more for privatization story called EPCG, than currently is the case”, said in MANS.

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