Unfinished Hospital Makes 10 Million Kuna!

In just three days the hospital made 10 million kuna with Zaba shares, without anybody in charge knowing about it.

The almost forgotten and overgrown University Hospital, a never fulfilled mega-project by the Sava River that had been financed by citizens for years, has of recent been earning millions on Zagrebacka bank shares, without anybody in charge, even its bankruptcy commissioner, Marin Simunic, knowing about it. It is even more unbelievable that the City doed not know to has the right to these shares. 

The bare building made ten million kuna in only three days of last week!

The hospital is among ten biggest shareholders 

If the maximum value of a traded share Friday afternoon, which reached 11,000 kuna, is calculated, the University Hospital’s stock based on shares is a total of 38 million kuna.

The shares skyrocketed after Bank Austria, as a member of the UniCredit Group, on February 7 announced Zaba’s refinancing with 3.55 billion kuna, which is a record among Croatian banks.

This made the value of the shares jump from 8,000 kuna on Tuesday to 11,000 kuna, as it was traded on Friday.

The University Hospital in founding, in bankruptcy, as is listed at the Zagreb Stock Exchange report, is among the ten largest shareholders with 3,432 shares.

Marin Simunic, assistant head of the City Office for Control and the bankruptcy commissioner of the University Hospital, had no idea that the hospital was making money on shares. 

-- At the moment I do not know the value of the shares. Frankly, I did not know the hospital earned that much on shares, but I knew that a certain number of shares had been registered to the hospital. When and who bought them I also do not know. But, rest assured that, as commissioner, I am not even thinking about touching those shares, although there had been interest in their purchase lately – Simunic stressed. He refused to tell us who and when wanted to buy off the shares from the hospital.

Nobody knows who bought the shares 

However, he did say that he had a report on the total balance of the University Hospital, including shares, but that the report had been in a drawer for years because he had nobody to submit it to.

-- I do not know any more whether the City or the state is responsible for the hospital. It is all waiting for some solution. Honestly, I can hardly wait for the City and state to reach an agreement on the hospital’s future to relieve me of this – said commissioner Simunic.

Kojic: best to give the shares to citizens 

Kojic claims that this is a very complex story and the best solution would be to allocate the shares to citizens.

-- This is legally a very complex story because the City, as far as I know, is currently not the owner of the shares. It is a known fact that the construction of the University Hospital was financed by contributions from citizens. The right to these shares, therefore, belong to the citizens that ‘in a fund way’ gave money for that. The city could possible be a mediator among citizens – says Kojic.

Zvonimir Sostar recalled that the shares had been bought for 1.8 million kuna, but does not know who bought them.

-- This is a big surprise for all of us. I do not know who bought them and when, but hats off to whomever did so – says Sostar.

Bandic – Sanader meeting next week 

Sostar said that the money earned from the shares cannot determine the fate of the University Hospital whose reconstruction he announced for this year.

-- A meeting on the subject between Mayor Bandic and Prime minister Sanader should be held next week and officials of the European investment Bank are arriving in Zagreb, who are also interested in the project. I have been fighting for this project with my heart and soul and it is 99 percent certain that its reconstruction will be done on the mode of public-private partnership – Sostar claims.

Chronology of events: 

- from 1982 to 1992 citizens set aside 156.7 million euros in contributions

- in 1992 construction ceased due to a lack of funds, with 5% of works completed

- another 250 – 300 million euros needed for completion

- the hospital has 82,000 square metres, 800 hospital beds and 200-300 beds for the infirmary

- in 2004 the then vice-premier and health minister, Andrija Hebrang, claimed that in 2005 the project would be implemented and an investor found, in 2006 construction would begin with everything completed in two to three years.

- in the summer of 2005, the head of the Zagreb health department, Zvonimir Sostar, said there was no reason for the continuation of works not to begin in 2007 and that Croatian companies would be involved in the construction as much as possible; works have not yet commenced.