Simic Rescues Polancec, Vukelic and Sanader

Eager managers who care more about real estate than the dairy plant are behind Simic`s takeover attempt, Damir Kajin believes.

Scandal over the privatisation of the KIM (Karlovac Milk Industry) dairy company has its sequel after the decision of entrepreneur Ivan Simic to forsake the purchase. Simic says that he had no choice, because of great pressure he is exposed to and lies placed in certain media.

Some Croatian politicians believe that this was not exclusively Simic`s decision, but that this is the case of bid withdrawal through extortion, according to Croatian Party of Rights (HSP) member Pero Kovacevic.

“New privatisation law is necessary”

Kovacevic says that the typical privatisation manner for the 90`s should be prevented by a new privatisation law. This law should enable the sale of state companies via leasing, which means that the company obtains full ownership only when the final instalment is paid, Kovacevic says.

Democratic Centre party (DC) representative Vesna Skare-Ozbolt believes that Simic has saved face of the government with such a decision, not only of the KIM company.

-Simic has saved government vice president Damir Polancec, Economy minister Branko Vukelic and Prime Minister Ivo Sanader- said Skare-Ozbolt, adding that political damage has been done, and the entire awkward situation shows that there is no strategy in the dairy industry.

-It is strange that neither Vindija, nor Meggle nor Lura responded to the tender for the purchase of the KIM dairy company, seeing how Croatia produces only 30 percent of the milk drunk by Croats- Skare-Ozbolt is sceptical.

Matijasevic requests urgent issuing of a new tender

Croatian Trade Union Association president and Croatian Privatisation Fund (HFP) Management Board member Ozren Matijasevic is satisfied with Simic withdrawing because, as he says, this sort of unacceptable fashion of privatisation regresses Croatia back into the middle of the 1990`s.

-Bankruptcy must not be allowed because only then are the doors open wide for the sale of KIM company`s property for next to nothing-Matijasevic said, adding that he, as a Croatian Privatisation Fund (HFP) Management Board member requests an urgent sitting for a new tender to be issued out, which will be 20 days long, shorter than the previous one.

 “Managers keeping an eye cocked on real estate are behind Simic`s takeover attempt”

Istrian Democratic Assembly (IDS) member Damir Kajin believes that government vice president Damir Polancec should withdraw from suspicious privatisation affairs, and the State Attorney needs to deal with the entire matter.

-I can precisely say that Karlovacka Bank is behind Simic`s takeover attempt, i.e. eager managers who care more about real estate than the dairy plant- Kajin said, adding that KIM needs to be salvaged because of its 1,500 subcontractors.

Croatian Peasant`s Party (HSS) member Bozidar Pankretic also warns of the necessity for salvaging the KIM company.

-Simic`s bid was absurd- Pankretic says, stating that it is now necessary to investigate who is behind the decision which prevented some of the larger dairy producers, like Vindija and Dukat, from responding to the tender.