Major changes in the management and operations of Pristina University Hospital (PUH), announced on August 9, have been introduced in an effort to quell allegations of malfeasance and mismanagement.

Dr. Pleurat Sejdiu, Co-Head of the Department of Health and Social Welfare (DHSW), was appointed temporary Chief Executive of PUH in July after allegations of corruption forced his predecessor, Veton Hoxha, to resign. At the time Sedjiu promised to deliver results in 30 days.

The planned overhaul will begin with the appointment of a new Executive Management Board. The board's task will be to ensure effective management of the PUH. This new administrative structure is to develop high-quality and appropriate clinical services in line with the DHSW's Kosovo Health Strategy. In a determined endeavour to distance the hospital staff from allegations of corruption, Sejdiu announced that the staff would work within a new 'Standards of Conduct Policy'.

The new board of managers will be directed by the Chief Executive, Dr. Safet Beqiri, and the Medical Director, Dr. Salih Ahmeti, both new appointees. Several key positions are yet to be filled, a task falling within the Chief Executive's purview.

The hospital has been plagued with accusations of mismanagement and inadequate health care provision in the media. Although at the time of Hoxha's resignations Sejdiu said he had not received any reports of corruption, he nevertheless asked that the DHSW set up an independent international commission to investigate the allegations. He also pledged to abide by all the regulations approved by the Department to establish a new staffing structure for the discredited hospital.

The DHSW will closely monitor the progress of the new hospital management who, in turn, will be working closely with the Department. The new board has several responsibilities: strengthening financial management; eradicating fraud and corruption; improving the quality of patient care and upgrading the delivery of clinical services. Information-gathering regarding patients and population health needs will also receive better attention.

"Everyone is on guard and we will not allow a return to old practices," said Sedjiu after the new announcement. He has convinced many donors who had left to return. International assistance totalling DM6.4 mn has been pledged by the British governmental agency, Department for International Development (DFID), for the overhaul of the hospitals' water and sanitation system. The European Agency for Reconstruction will replace several X-ray machines and refurbish six operating rooms.

Privatisation, the way ahead for economic growth

The Department of Trade and Industry (DTI) has presented a three-pronged strategy to privatise Kosovo's socially-owned enterprises.

The Department's international Co-Head, Tim O'Neill, informed the KTC last month that commercialisation has had limited success and that privatisation is favoured as a more effective and viable method to revive the province's economy. Mr. O'Neil, described the planned strategy as 'unique' and as corresponding to Kosovo's own particular situation.
Out of 49 tenders opened for commercialisation, only some 20 offers have been made. Of these, successful contracts have been signed in seven cases. In six other cases the negotiations are in the final stages. On a positive note, Mr. O'Neill said job growth in the successful enterprises negotiating with DTI had doubled and nearly DM85 million investment committed in these contracts.

According to the DTI Co-Heads, one of the reasons for this lack of progress includes resistance from existing management of some of the enterprises. Extending private ownership, including commercialisation of the socially-owned enterprises, requires solutions to issues such as ownership of social property, treatment of workers, and processing of claims. These questions date back to the complicated system of social ownership established in the former socialist regime. These complexities in turn have led to the reluctance of foreign investors to participate in the commercialisation programme.

Three strategies for privatisation have been envisaged. The first would 'spin off' the assets of an existing enterprise into a new company specially created for the purpose. According to Mustafë Ibrahimi, deputy director, Economic Chamber of Kosovo, under this method, direct investment of foreign companies can be expected only after two years. A second model would reorganise bankrupt enterprises making them attractive to investment. Any proceeds from the sale of these enterprises, or their assets, would be held in trust for the creditors and the enterprise owners.

A third possibility foresees the transformation of sustainable enterprises into joint stock or limited companies. Under this method, 60per cent of the assets would be directed to the workers and 40 per cent would be auctioned off, the proceeds of which would go to the Kosovo Consolidated Budget for the benefit of society as a whole.

KTC members have indicated that the need for a stable economy is of paramount importance in creating political stability, and have expressed a need for transparency in DTI's plans to develop a privatisation strategy. Pillar IV has expressed the desire to continue the debate with all those involved, including the workers. With no immediate agreement as to the way forward, privatisation will no doubt return to the KTC discussion table in the very near future.

Briefs . . .

The Department of Trade and Industry announced its ninth successful commercialization, the "Sunflower Oil" company in Ferizaj. The ten-year contract was signed last week between DSRSG Andy Bearpark, head, European Union Pillar, and Alcon Ltd., a joint venture comprising two Kosovo-based companies. Alcon will invest DM2.818 mn in the company over ten years, and increase employment in the plant by at least 10 per cent annually for the first four years. Alcon will also renovate the enterprise and import new technology.

Work on the construction of the Pristina cargo building, cargo shed and access road is proceeding on schedule. Negotiations are ongoing with owners of small land parcels who have not yet signed the declaration agreeing to sell their land to the airport. To date about 85 per cent of landowners whose property is needed for the new access road have signed the declaration. Preparations by Air BP to start fueling operations for commercial aircraft are proceeding on schedule.

KEK announced that load shedding would continue throughout Kosovo during August and continuing into September as current demand is exceeding anticipated levels by 18 per cent. The pattern is likely to be 3 hours with electricity, 3 hours without. Supply interruptions are due to both units at Kosovo B operating on a planned shutdown, part of an overhaul in preparation for the forthcoming winter.

People who believe their rights have been violated with regard to the electoral process of the Kosovo Assembly elections have a right to turn to OSCE's Election Complaints and Appeals Commission (ECAC). The ECAC can adjudicate all such complaints and appeals. The body, established by the Central Election Commission (CEC), is composed of one international chief commissioner and between three and five deputy commissioners from Kosovo. Staff consisting of international and national legal advisors and international investigators support the ECAC.

The Public Utilities Department has issued a reminder that an instruction, dated March 2000, authorizes all public utility enterprises to collect revenue for utility services provided. Water utility enterprises can collect a flat fee of DM 12 per month from all households for domestic usage supplies. All institutional, industrial or business users with installed water meters will be charged accordingly. Commercial premises without installed meters will be charged a minimum monthly flat fee of DM150.

KFOR's Regional Task Group 5 recently held a leadership development course adjacent to Batlava Lake. The course, aimed at providing mentally-challenging and physically-demanding tasks, involved 30 KPC members working alongside 30 members of British KFOR, and included map reading, daily fitness-training, medical first-aid and initiative tests.

On 9 August COMKFOR, Lieutenant-General Thorstein Skiaker, officially opened the railway tunnel near Gate One, north of Lesak. KFOR funded and organized the works on this scheme, one of the major infrastructural projects carried out during KFOR's time here.

UNMIK Police have been providing assistance to the Kosovo Drugs Regulatory Agency (KDRA) in the past week to close down illegal pharmacies. Letters of warning are being sent to pharmacies to inform them of the need to register and obtain proper licenses from KDRA. KDRA inspectors will be visiting pharmacies and closing down those operating without licenses, which comprises a criminal act. All pharmacies are urged to apply now for proper licensing.

The Department of Health and Social Welfare has approved the opening of a small family home for babies and toddlers, a UNICEF-funded project for children awaiting adoption. The home, which commenced operation on 1 August 2001, is run by a UK NGO, Hope and Homes for Children and provides care for up to ten children for six months, during which time it is hoped adoptive families will be found.

In Fushe Kosovo/Kosovo Polje work has begun to establish a primary health care unit for the Kosovo Ashkali community. The Danish Refugee Council is implementing the project with support from UNHCR. Medical supplies are to be provided by the Department of Health.

The Department of Labour and Employment is continuing its efforts to create employment for unskilled ethnic minorities through formulating community infrastructural projects in Strpce and Novo Brdo Municipalities. These two pilot demonstration projects will soon be finalized in consultation with the municipal authorities and submitted to the European Agency for Reconstruction for funding consideration.

Nine tipper trucks with snowplough blades were delivered to the Kosovo Protection Corps (KPC) last week, part of ongoing deliveries connected with the Financing Agreement between the Department of Civil and Emergency Preparedness and the European Agency for Reconstruction to equip the KPC. The KPC transport fleet will also receive 12 trucks and 6 jeeps donated by France for KPC units located within the French KFOR sector.

The Budget Circular for the 2002 Budget has been finalized by DLA after consultations with CFA and distributed to the municipalities. Regarding the installation of a financial model in the municipalities, a meeting was held between CFA, FreeBalance and DLA. Issues of the coding structure were discussed to enable the FreeBalance consultants to develop a chart of accounts for the pilot training programme.

As part of Kosovorization a deputy co-head and nine directors of the Central Fiscal Authority (CFA) will be chosen by local staff based on a competitive selection process. The CFA is the first UNMIK institution to begin the transfer of authority to the Kosovars.