Conflicts Continue Between Government and Kosovo Post

The government and Kosovo Post continue to clash over the legality of the demand put forward by Posta for the separation of means from Kosovo's budget for covering the losses of the company.

This demand by the Kosovo Post to the Government, according to government officials, is not legal, as competent institutions have been overlooked in advance on the issue. Meanwhile, the Post representatives say otherwise.

The Kosovo post office was once considered one of the most profitable companies in the country. But now she is in a difficult financial situation. Even from next month, the wages of its workers reportedly will be jeopardised because of the lack of financial means. For this reason, the Board of Directors of the Company has asked the Government to cover financial losses.

Economic Development Minister Valdrin Luka, in a conversation for Radio Free Europe, says the Government is the shareholder of this company and has the obligation to subsidise in difficult situations, but that in advance it needs to meet certain legal conditions for such a requirement.

Minister Luka explains that to be officially recognised the Post's financial losses, the demand must be passed on to some mechanisms that oversee the institution, and whose mechanisms, according to him, have been overlooked.

“As long as the request has not been passed to the Electronic and Post Communications Regulatory Authority, (ARKEP), for us it is not valid, because it is also seen in the law. The form of how we count those losses, then it has to go through several channels, filter and confirm by ARKEP, that those losses are real and reflect. And, we then take to base the financial mirror of the Post, together with the recommendation of ARKEPs, which recommend subvention or in this form confirm that part of the loss”, says Minister Luka.

But, Post officials for Radio Free Europe say the request is legal. The request has been sent to the (ARKEP) ” Authority, said in a brief response by Education Mehmeti, official for public relations in the Kosovo Post.

However, officials of the Electronic and Postal Communications Rent Authority say. They confirm to Radio Free Europe that they have not accepted any requests or paperwork from the Kosovo Post, concerning the confirmation of commercial losses.

In this regard, ARKEP has been informed by the Ministry of Economic Development (MZHE), through official communications and electronic media in the country.

Nazim Rahimi, head of the ARKEP Service Sector, in an email response to Radio Free Europe, says that “at the base of the current law, ARKEP is responsible for overseeing the implementation of universal services and other postal services in general for the territory of the Republic of Kosovo”.

Otherwise, the burdened situation in the Post, according to a communique for the media, is said to have resulted from financial losses the Posta has in providing the Universal Post Service, as well as in failing to repay financial obligations for the services it offers for certain operators.

Kosovo's post is obliged by law to offer the Universal Postal Service regardless of the cost and continued loss for years. On the other hand, said in the communiqué, the Kosovo government is obliged by law to cover losses in this service. There is also an agreement between the Post and the Ministry of Economic Development in 2014.

And the role of ARKEP, as regulator, under the agreement, stresses Nazim Rahimi, is to oversee the management of the agreement's implementation, only in the part referring to the delivery of universal and reserved postal services, the issue of tariffs, reporting and publication information.

However, Minister Valdrin Luka considers that the situation created in the Post is also the management of this company. He says that in this company, the human factor has made continued mistakes with the employment of large numbers of workers, even disqualified, with an average salary of 850 euros.

“has had overwork and high wages. The other side is that other policies can be made to help Posta increase revenues. The Kosovo government has taken the obligation to see social schemes distributed. We have about 28 different social schemes, where only a few of them are distributed through the Kosovo Post. Why not distribute most or all because it helps Posta run more tools and grow in, and that will also help cover expenses”, says Minister Luka.

According to Kosovo Post officials, the number of workers at the company is 1,015 euros.

On the other hand, experts on economic issues a dose of guilt for the serious financial situation address the Government of Kosovo.

Muhamet Sadiku, professor of economics, tells Radio Free Europe, that Kosovo Post is a public enterprise located under the umbrella of the Government of Kosovo, and for that, the government should give responsibility.

Therefore, concrete steps are required from the executive to return Posta as a successful business.

The key to such a situation is known. All those who institutionally covered the post office. They're the first to experience accountability, because for a long time we've been boasting about PTK successes, while we're already talking about financial problems”, Sadiku estimates.

Otherwise, Kosovo Post Office has operated on the Kosovo Post and Telecom system. But in 2012, with a government decision, Post was separated from Telekom and established as a Central Public Company.

Kosovo Post inflows for 2017 have been more than 11m euros.

The Kosovo post has twice been subjected to the privatisation process, but twice in a row the Government of Kosovo has failed to successfully complete this process.

In the event of the privatisation of 75 percent of Kosovo Post and Telecom shares, in 2013 the company “Axos { Capital” was declared winner, worth 277m euros, but the contract, according to the winning company, was never implemented. The company indicted the Government of Kosovo, and judicial processes are under way.

The Kosovo government, meanwhile, has selected the company “Patton Box” as legal representatives to resolve the dispute between the company “Axos” and the Government of Kosovo.