JULY 24 2012 19:47h
The Economy Ministry issued a statement on Tuesday about the situation in the state-owned radio broadcasting equipment manufacturer RIZ Transmitters, stressing that it is necessary to stabilise business activities and define a true situation in the company, which is also in the best interest of its employees.
The ministry recalls that the company underwent financial restructuring in 2008 when HRK88 million of fresh capital was injected in the company which was partly used to cover the losses which at the time exceeded HRK35 million.
The company continued to generate business losses even after that and today the company's business losses amount to more than HRK51 million. In 2011 alone, the company generated HRK4.84 million in business losses and in the first two quarters of this years the company's losses are estimated at HRK7 million. This inevitably leads to a collapse, the ministry said.
The ministry also said that the company's Supervisory Committee at its session on 2 April did not adopt the annual financial reports for their lack of credibility.
In this situation, the state, as the majority owner of RIZ Transmitters which holds 64.1 percent of shares, has the right and obligation to objectively look at the true financial situation and appoint its representatives to the Supervisory Committee and the Management Board who will then stabilise the company's business activities and launch the new development cycle, the statement said.
Over 150 workers of the radio broadcasting equipment manufacturer RIZ Transmitters gathered outside the government offices in Zagreb's St Mark's Square on Tuesday morning seeking an audience with government officials to present their demands for an Employee Stock Ownership Plan and for the appointment of Management and Supervisory Board members from within the company rather than politically suitable people. (Hina)