Niš-based "Srbijaturist" to have same destiny as "Putnik" - resale of ownership ?

Hotel-Catering Company "Srbijaturist", sold in September 2003 to an American of Serbian origin, Srba Ilić, will most likely have the same destiny as Belgrade-based "Putnik".

Authorized auditing company KPMG from Belgrade has designed condition revision on concrete realization of investment program and it is concluded that the new owner did not fulfill obligations related to investment program regulated by contract.

Privatization Agency started procedure for charging of fine, i.e. it used its authorizations and, due to unfulfilled obligations, pronounced the sentence to the owner.

That means that Srba Ilić and "Uniworld holding" company will pay the fine that amounts to 150% of planned and unrealized investment program. Since investments related to investment program amounted to €2m, the fine will amount to €3m.

It is not known if the fine will be charged, or, similar to "Putnik" that seeks new buyer, "Srbijaturist" will go through all the procedure and soon be sold to someone else.

The tries for reaching Privatization Agency are underway, for it should make new decision and the annex should be signed which would practically confirmed that the obligations from the investment plan for the first year were not fulfilled and that they are rescheduled for the next year. That means the temporary concession will be made to Ilić, and that he will get another chance to realize what he was bound to by the contract.

There is possibility that Agency accepts investments of only €1.3m instead of €2m for the first year. In that case, investments for the second year would amount to €3.7m instead of €3m.