Montenegro: Accusations against A2A, failed privatization and attacks from opposition

Published on 28. May 2014., SEE Energy News

The announcement of General Director of the Italian A2A Renato’s Ravaneli, that a possibility of making a decision on the sale of shares of EPCG exists, but also some changes in their investment strategy, confirms the validity of the attitudes of the DF’s on recapitalization and partial privatization.

The announcement of General Director of the Italian A2A Renato’s Ravaneli, that a possibility of making a decision on the sale of shares of EPCG exists, but also some changes in their investment strategy, confirms the validity of the attitudes of the DF’s on recapitalization and partial privatization of Montenegro’s most important company. The claim that the Government of Montenegro accepted the bad agreement, hereby was being more actual, said Deputy of the New party and DF and MP’s of DF Strahinja Bulajic. “Nothing will be conducted from such a contract, and that contract cannot implemented. Simple, A2A has done nothing except changing several managers whose managerial ability has been showed more than questionable.”

None of the planned indicators hasn’t been fullfield. In the organizational, professional, infrastructural sense, but also financial and in any other terms as well, the result of managing of the Italian management team in EPCG is withering. One thing is clear-the Italians are now in a big trouble in EPCG. Are they came into a trouble only because of the inability to control or them help some particular government officials, we will see. Obviously A2A wants to sell the shares, but as things stand, it appears that there is no potential buyer, “said Bulajic in a statement .He added, posted losses of 70 million rose to 301 million and it was questionable only if the A2A would be able to get out of the whole story.

The truth is that A2A brought about 430 million, but now all is “spinning” around a reduction of the total capital of EPCG. Directly, by reducing the value of shares at about 5.5 euros, capital would be diminished by about 130 million. Obviously, a basic corporate rule didn’t happen – that acquired company is selling for more than it was paid. In the case of EPCG this, obviously is not happening. In a series of performances, DF’s officials warned the curious fact – that the Government as majority owner handed over a fully operational control to A2A as a minority owner. It’s a bit confusing, and the announcement of Italian mangers that EPCG will make a profit of 26 million. This can happen only in case if, in financial terms, the debt of KAP treats as charged, but a modus is not clear, because it is known that about 52 million euros is uncollected from KAP and Montenegrobonus.

“Soon it will be known if threats would be accomplished before the arbitral tribunal, as well as a result of discussion with the Minister of Energy of Italy from February this year, when he loudly announced that A2A remained in EPCG. Is this all a result of personal interests and backroom deal making individuals from A2A and the Government of Montenegro, or is still, apparently the Government’s rocking and certain coming changes in the Government has opted the A2A for such steps, it will be much clearer soon. However, the current behavior of the A2A is rescuing in the great harm, “ Bulajic said.