Grandi, Lamkos two worst privatisation examples in Kosovo

Privatisation of social companies in Kosovo launched as a process in 2003 has not resulted in a revival and business development for many of them. Two of the best examples of the privatisation of social companies in Kosovo is considered to be the Lamkos and the Grand Hotel.

Both of these companies, which were privatised in the first wave of the privatisation process, have failed to prove successful in their business.

Lamkos and the Grand Hotel were privatised with the special spin-off approach meaning that the buyer has no right to change their destination, also must employ a certain number of workers and make new investments.

Valon Tolaj, managing director at the Kosovo Privatisation Agency, says Lamkos is in bankruptcy procedure and that the AKP has no legal competence over Limkos, while the Grand Hotel is in liquidation procedure.

Both companies have been privatised by the Kosovo Trust Agency, and the AKP as heir has had the obligation to oversee the implementation of privatisation contracts and due to the failure to implement the terms of the contract, The AKP has been forced to make the withdrawal of shares. As a result, both companies have gone into liquidation. The Grand Hotel is now ready to privatise even though it is in liquidation procedure, while the AKP's connection with Lamkos with Lamkos is completed at the moment of sale”, Tolaj says.

The Lamkos factory, it's in Vushtrri and it's destined for the lamarine processing. The factory is designed to produce more than 120,000 tonnes of tin that are dipped annually.

The company was privatised twice by the Kosovo Privatisation Agency.

The first time it was privatised in 2005, the special spin-off method, while in 2009 the AKP had drawn shares from the buyer due to the failure to meet contractual obligations.

The next attempt was made in 2011 when this company was purchased by an English company. But neither has this company met obligations, and as a result, since 2015 this company has been in bankruptcy procedure.

There are about 500 workers who have been out of work for four years now who even claim to be creditors, since the company management owes them 10 wages or a total of 750 thousand euros.

Enver Isufi, a member of this company's Workers Union, has told Radio Free Europe that the workers are waiting to pay off the debt, but that they still have no information about when this company is liquidating.

“We didn't take wages, the factory didn't go out for sale, nor did the owner show up anymore. We have no information from the Court or manager assigned to this case. We've been waiting for a” decision, says Isufi.

On the other hand, Virtue Ibrahimaga, manager of Lamkos, appointed by the Pristina Foundation Court, had said the court is considering the creditors' demands and is soon expected to pass the company into the process of liquidation and then workers and other creditors will receive their money.

Ibrahimaga shows that the company's overall debt “Coresteel”, which had bought Limkos, to creditors including employees, is more than fourm euros.

Grand Hotel pending reprivation

The Grand Hotel was privatised in 2006 at a value of over 8m euros, and a contract assigned to the Grand Hotel buyer to make investments worth over 20m euros and employ 570 workers.

But failure to establish commitments, on the part of the buyer, caused this social enterprise to enter legal confusion among Grand Hotel buyers Zylqif Berisha, owner of the company. NTP Unio Commerceı and AKP.

The Kosovo Privatisation Agency in 2012 attracted shares in the new Grand Hotel company and returned the company under its administration.

Representatives of the Kosovo Privatisation Agency consider that in terms of the Grand Hotel, all judicial procedures regarding this legal action of the AKP have ended with final court decisions in favour of the Kosovo Privatisation Agency.

Valon Tolaj, managing director at the Kosovo Privatisation Agency, says the Grand Hotel is ready to offer for privatisation, even through the Law for Strategic Investment.

“Hotel Grand is already ready to be privatised even though it is in liquidation procedure. We're trying to find a better way to give him greater value through the Law for Strategic Investment. We have sent data to the Kosovo government for the Grand Hotel and expect to have investors from the hotel field”, Tolaj says.

However, the battle for Grandie is not considered lost for this hotel's buyer, Zylqif Berisha. He claims that the withdrawal of the shares that the AKP made has been unfairly done and that no one can privatise the Grand Hotel.

The judicial process around the Grand Hotel is continuing and that no one, no institutions, can place this object in reprivatisation or as private investors are said to be offered through the Law for Strategic Investment. I just want justice in this process. We tell everyone not to rush with decisions for the Grand Hotel, the court's decisions” should be expected, Berisha told Radio Free Europe.

The Grand Hotel, compared to the past, is almost outside the event it was destined for by the time it was built 40 years ago in 1978.

Currently, various businesses operate in the areas of the Grand Hotel, starting with media houses, offices for various legal services, accounting, foreign organizations, banking devices, advertising spaces, luck games and medical services. /rel