Serbia:Srbijagas facing bankruptcy,South Stream endangered?

8. October 2013. / News Serbia Energy

Operations of public enterprises must be checked, especially Srbijagas, as that company is facing bankruptcy, stated Energy Minister Zorana Mihajlovic. We have warned many times that, if possible, it should do the police, said Mihajlovic and repeated that Srbijagas is facing bankruptcy and that there are reasonable grounds “that the things have to be revised.”

She thanked employees of Srbijagas who were sending data on work of the company to the anti-corruption team of the Ministry of Energy, because, she said, it is difficult to obtain information from Srbijagas.

Mihajlovic said that these data and the state auditor data on business operations of Srbijagas are sufficient to get the report from the competent authorities about what was happening in the public company.

She noted that, in parallel with this, financial consolidation should proceed and reformation of Srbijagas, as that this company came into a situation that it can no longer fulfill any of its obligations.

Srbijagas obligations to suppliers are more than 40 billion dinars, said Mihajlovic.

The Minister reiterated that the plan of reforming of Srbijagas will again be forwarded to the Government for approval, and that it will be discussed about that program with the Ministers of Finance and Economy.

“We will not allow that one strategically important company collapses in front of everyone,” said minister.

Answering the question whether such a situation in Srbijagas will impact on the company’s investment and the construction of gas pipeline “South Stream”, which should begin by the end of the year, Mihajlovic said that the Serbian government is guarantee for the “South Stream” and that, as so far, they will do everything to meet commitments associated with this project.

In order that Srbijagas could be the centerpiece of all of these activities, we need to make efficient company, said Mihajlovic.

Members of the Criminal Police and the Department for Combating Organized Crime, control documentation of business operations of Srbijagas, and the control of documentation began at the request of the competent Prosecutor’s Office, according to the report of the State Audit Institution of the company’s operations in 2011.

The auditors have previously found that outside of the Law on Public Procurement in Srbijagas was spent more than 46 billion RSD and that they imported gas without concluding the foreign trade agreements.

Source; Serbia Energy

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