“Hasting privatization is needed”
October 2004
(Valon A. Syla)
Hello and Welcome. This is UN Radio in Kosovo.
Claiming there are no official reports to adequately explain
the lessons learned from the first two rounds of Kosovo’s Privatization
process, the Institute for Development Research ‘Riinvest,’ hosted a round
table to discuss solutions on the matter.
Economic analysts from Kosovo, Andreas Wittkovski from the
United Nation’s Pillar 4, responsible for economic reconstruction and
development, and representatives from Kosovo’s Local Government all took part
in what observers characterize as a frank dialogue.
Atmosphere: “Thank you very much professor…
Iraj Hashi is an economist who works as a professor at
Staffordshire University in the UK. He says that the Kosovo Trust Agency, or
KTA, has insufficient statistical knowledge of the companies being privatized.
In this way, he asserts, investors base their reports on what they perceive as
companies working in the red, when in fact the companies being analyzed are
actually generating profit.
Actuality: “One of the investors was able to find the information on the
first six months of one company in 2004 which enabled the investor to make a
different judgment. How much to offer, whether it should buy it whether it
should not buy it. That information should be available to everybody in the
public sector.”
On the other hand, the Kosovo Trust Agency’s Managing
Director for Privatisation, Ahmet Shala, thinks that the process should move
faster because every delay reflects mistrust towards the Agency and towards
Kosovo’s institutions.
Actuality: “It was not coincidental that the mandate for the KTA was
foreseen to take no less than three years, and only the speed factor [of the
privatization process] can save this institution’s honor if I can express my
opinion honestly. And I think that until now every delay leads to damaging the
image of Kosovo and its institutions.”
A professor at Prishtina University, Afrim Dushi, who is
also a board member of Riinvest claimed that delaying the privatization process
is what allows for corruption. He said
he agreed with Ahmet Shala’s assessment that speeding up the privatization
process was the only way to jump-start an ailing economy.
Actuality: “This
has to do with the Kosovo Trust Agency and with the socially owned enterprises
that are being privatized. Full transparency in the privatization process
should be viewed with many aspects in mind: one major one is linked with the
laws and regulations associated with privatization - which need to be clear,
because a lack of clarity gives ammunition to rumor and conjecture for
candidates being considered for tender offers. I am speaking about internal
corruption, one of the common allegations.”
According to many participating at this round table
discussion, the process of privatization and the reputation of the KTA were
damaged, in large part because the process was blocked for 9 months. In that
time, the board of Kosovo’s Trust Agency has not met, which has created
confusion among its members and the public says Prof. Iraj Hashi.
Actuality: “Stalling of the privatization…but official
undermining of the process is even worse.”
According to United Nations Pilar 4, over 400 companies are
waiting to be privatized. Local analysts estimate that of those businesses, at
least 100 of them are actually profitable.
Meanwhile, the KTA recently conducted the Third Wave of the
privatization process. On September 15, 13 former socially owned enterprises
were put on the auctioning block.
Bids were accepted for 12 of 13 SOE’s, and provisional
winners were publicly announced. According to KTA sources, some of the tender
offers only received one bid, and the KTA board of directors does have the
right to reject or re-tender those bids.
Stay tuned as UN Radio in Kosovo continues to monitor
Kosovo’s Privatization process.
This has been a production of UN Radio in Kosovo, thanks for listening.