At its session held on 1 November, the Privatisation Committee adopted the Report of the Ministry of Economy on the Activities of the Privatisation Agency for September 2004, along with the Agency’s Programme of Activities for October 2004. The Committee asked the Privatisation Agency to forward it the privatisation contract model to be used in future.

Members of the Privatisation Committee discussed the Report of the Privatisation Agency on the fulfilment of the contractual obligations of the buyer arising from the Contract on the sale of socially-owned capital by public auction for Doljevac-based Agroeksport-Toplica, in accordance with the Committee’s Conclusion passed on 8 September 2004, and asked the Agency to forward it the Report on the inspection carried out on 3 November 2004 for the next session.

The Committee adopted the Report of the Ministry of Economy on the monitoring of the privatisation of Belgrade-based Hempro Joint-stock Company, in accordance with the Committee’s Conclusion passed on 8 September 2004.

Having discussed the Report of the Privatisation Agency on the repeated inspection of the privatisation process for Kraljevo-based Elektron Joint-stock Company, in accordance with its Conclusion passed on 15 October 2004. The Committee adopted the report by a majority of votes, recommending small shareholders to seek protection from appropriate judicial bodies if they consider their interests to be at risk.

The Privatisation Committee adopted the Report of the Privatisation Agency on the inspection of the privatisation process of Jarmenovci-based Jovanovic-Jarmenovci Joint-stock Company, in accordance with the Committee’s Conclusion passed on 15 October 2004, and passed a new Conclusion requiring the Agency to continue the monitoring of the fulfilment of the buyer’s contractual obligations and inform the Committee of changes requiring legal action. Small shareholders were advised to seek protection from appropriate judicial bodies if they consider their interests to be at risk.

Having discussed the Report of the Privatisation Agency on repeated inspection of the fulfilment of contractual obligations of the buyer of Kursumlija-based Modna konfekcija 7. juli Joint-stock Company, in accordance with the Committee’s Conclusion passed on 15 October 2004, the Committee reminded the Agency that its Conclusion passed on 8 September advised the Agency to initiate proceedings for the termination of the Sale and Purchase Contract, as conditions had been met.

Members of the Committee discussed and adopted the Report of the Ministry of Economy on measures taken in the case of Jagodina-based IK Resava Joint-stock Company.

The session’s agenda also included the Report of the Privatisation Agency on the request of the trade union organisation of Bac-based MI Arma for re-assessing the privatisation process and terminating the Sale and Purchase Contract. The Privatisation Committee passed a Conclusion recommending the Agency to re-assess the possibility of initiating proceedings for the termination of Arma’s Sale and Purchase Contract, taking into account the quality of recapitalisation and the possible discontinuity in the company’s activities, and submit a report to the Committee within 10 days.

\Having discussed the Report of the Privatisation Agency in connection with the request submitted by the buyer of Bela Crkva-based Zarko Zlatar Public Enterprise for a repeated audit, the Committee advised the Privatisation Agency to re-assess whether there were grounds for continued litigation with a view to terminating the Contract. The advice took into account the allegations from the buyer’s request, the fact that the company was operational, that neither the trade unions nor the small shareholders had asked for the termination of the Contract, as well as the explanation of the buyer’s representative, Committee members said.

The Privatisation Committee also discussed the request made by representative trade unions from Kraljevo-based Poljopromet Joint-stock Company to re-assess the privatisation process and the fulfilment of the contractual obligations of the company’s buyer. The Committee will discuss the Agency’s report in connection with the case at its next session.

At the request of deputy Radmilo Milosevic, the Privatisation Committee is to ask the Governor of the National Bank of Serbia and the Privatisation Agency for information on whether Raj Bank was in liquidation and what the status of its obligations was.

At the request of Committee member Ostoja Stojanovic, who expressed his belief that the owner of Belgrade-based Gorica Joint-stock Company was continuing to appropriate the company’s assets, the Privatisation Agency agreed to forward information to the Committee on the inspection of the fulfilment of the contractual obligations of the buyer of Belgrade-based Gorica Joint-stock Company.

The Committee is to hold one of its future sessions with the participation of representatives of the Nezavisnost United Trade Union Organisation, who had offered to co-operate with the Committee.

Bearing in mind that contracts had been changed during the privatisation process, the Privatisation Committee asked the Privatisation Agency to forward it a summary of the basic provisions and key issues of the contracts signed so far.