Kurti's government lost nearly 1.8m euros in arbitration in the case of “Sharr Cemit”

Surrounded by his two subordinates, the Minister of Economy, Artane Rizvanolli and Hekuran Murati, Minister of Finance, Prime Minister Albin Kurti, visited the Kosovo Privatisation Agency in January this year. The news was released from there on behalf of the new AKP Board's successes.

Nazmi Mikulovci, who once went to press conferences along with Kurti in opposition, is currently running this board as chairman of the Industry Committee in Vetevendosje Movement.

While talking about successes, an arbitration process against The AKP was continuing. Two months after the trumpet, The AKP missed the arbitrage case with “Sharr Cemin”.

The AKP has told Gazeta Inseder, that on March 7, 2022 The International Tributal of Arbitrazhi by majority of votes (two in favour and one against), had decided that “Sharr Beteiligungs GmbH”, privatisation of “Sharr Cemre is right and wins the case. AKP loses.

The arbitrage court ruled that AKP should pay “Sharr Beteiligungs GmbH”, 1 million 850 thousand euros.

Over 400 thousand euros are payments for the company's expenditures on arbitration, while more than 1m and 350 thousand euros are in partial repayment of legal interest and other company spending caused at the simple arbitration rate of 4 % per year from the date of this decision to full pay.

For 23 days, from the AKP arbitration decision with chairmanship board former senior Vetevendosje official Nazmi Miclovci would issue the decision to pay that sentence.

With March 30, 2022 Board of Directors The AKP has issued a decision to make the payment under the Arbitrazhi International Tribunal's decision, which is of strict shape and that its execution would expose the AKP to pay additional 4% interest on daily grounds. As a result of this AKP's 15 April 2022, has finalised the banking transaction on the Sharr B account, confirming Arbitrazhit International Tributal”'s decision, said the AKP's response to Gazetun Insander.

In February 2019, when Kosovo's Telekom was to scrap the contract with Z-Mobile company that has also won an arbitration case of nearly 30m euros, then VV deputy, now Minister of Infrastructure Lieburn Aliu and the chairman of the Committee for Electronic and Post Communications in VV, Fatban Bunnjak would appear at a conference.

What happened in the developments in Telekom, Vetevendosje would blame Government, then headed by Ramush Haradinaj as prime minister. The 30m-euro case from arbitration, Vetevendosje would name it a fine.

The service quality has been highly degraded and the Vala resources have been overused by Z-Mobile. Telekom's wave has lost under contract with Z-Mobile 9-11m euros annually as a result of the missing revenues, the theft of subscribers, the sale of services under cost and other practices “Manding <x2m> from Z-Mobile, the division estimated only by Z-Mobile reporting and not by equalizing mutual data, as well as 30 million fines from arbitration<3>, the Self-Determination communique said.

AKP is not asking for any indictee to lose arbitrage

If the payment of over 1 million 850 thousand euros in the case of “Sharr Cemin”, The AKP has paid nearly 700 thousand euros for legal representation as well.

“Legal build that represented AKP in this context is “Squire Patton Boggs “ele in the United States”, says the AKP's response to the Gazette Insander and shows that the value of this contract is 699 thousand euros, and so far, The AKP has executed 679m euros, and the last payments under the contract remain without being executed in the amount of 20,000 euros.

The Ministry of Albulen Hadziu budgeting hundreds of thousands of euros

Last week's Isander newspaper reported on the engagement of the same firm by the Justice Ministry, directed by Albulen Haxhiu, which with a mistake this minister had made, cost the budget more than 270 thousand euros.

Despite His Decisions AKP reported on “Share Cemre” was based on auditing reports that had raised serious doubts about the non-fulfillment of the contract on the part of the company that privatised this company, the loss of the case that cost it over 1.8m euros, will not follow whose fault it was.

“The AKP throughout the period the dispute has been demanding working reports from legal firms, as well as all parachutes, the defence in the indictment, against the AKP indictment and court hearings that have been held to account for this case, the AKP has been monitoring, with regard to the quality of AKP representation by the legal firm Squire Patton Boggs, the AKP has not found any shortcomings or concessions to address”.

“However, the Arbitrazhi International Tribunal, according to their conviction, has decided that investments conducted by buyers in the Republic of Northern Macedonia will be recognised as investments within the framework of the Han-Elezem Company”, the AKP's response reported.

The History of Richly Worthful Privatisation

“Sharr Cem”, the largest cement factory in Kosovo that was bought in 2010 for 30m euros from the Greek firm, “Titan Group”. At the time, prior to privatisation, except annual gain of “Sharr Cem” was estimated to be about 20m euros.

“on December 9th 2010, the Kosovar Privatisation Agency and SharrB signed the Exchange Sales Exchange Agreement (MSHA) of the SharrCem company with Elezine Cell at a total price of 30.1m euros purchase, and, provided market conditions remain materially unchanged, implement a 5-year-old “investment programme, worth 35 million euros”, the AKP response reported.

Five years after this privatisation The AKP had written to SharrCem informing him that the deadline for meeting investment obligations under M The US had expired on December 9, 2015.

After this communication with the firm, AKP in 2016 would engage the international audit firm “BDO” to perform “an audit to determine whether SharrB had fulfilled its pledges for investments within the MSHA”, the AKP's response reported.

At the end of that year BDO released the auditing report and the First Report has noted that SharrCem had reported 35,170,654.51 euros in investments between December 9th 2010 and December 31, 2015.

However, The BDO has concluded that some of these reported investments could not be “set aside as capital investments for meeting the investment pledge agreement. ”

The report highlighted in particular the 7m 891 thousand euros paid for the purchase of shares in three companies, Rudmak DOOEL (<x0) CODOEL Skopje (“MilCo”) and Cement Plus shpk (“Cment Plus”), as well as an additional 1.5m euros marked by SharrCem as the following “Inves. ”

For the latter, it was concluded by the BDO that there are no capital investments in the sense of the MSHA.

225,757.34 euros in reported investments that were “reached and contracted” after December 9th 2015 until December 31st 2015 were also excluded from BDO.

As such, The BDO has found “acceptable capital investments since December 9th 2015” to be slightly more than 25.5m euros.

In response to this “Sharr B” had raised its concerns that the fulfillment of the rest of the investments had resulted in difficulties in market conditions that had occurred in the Republic of Kosovo.

On July 31, 2017, The AKP has announced SharrCem that the AKP Board of Directors had decided to engage “a prestigious international audit firm” to analyse market conditions that could affect the implementation of the investment programme under the MSHA.

On January 26, 2018, The AKP had linked the next contract to the BDO to “if there is any change in market conditions which could have an impact on realising capital investments by New Enterprise buyers “Sharcem” Elez's Hani”.

At the conclusion of its overall report, The BDO has found that “has not had any material change in market conditions that may have contributed to capital investments being realised by the buyer of the New Sharcemà sh.g., Han of Elez”.

On November 23rd 2018, the AKP Board of Directors decided to pay SharrCem 9,441,768,83 euros “for the non-recognitional difference “and set the payment deadline “60 working days after the announcement”.

“After taking the decision from AKP, SharrCem and “SharrB” has written to the AKP separately, claiming that “SharrCem” was not an MSHA party and for that reason there was no obligation under this” agreement, AKP's response sent to the Isader said.

The AKP was not compatible with their positions, and on January 30th 2019, the AKP Board of Directors changed the previous decision, stressing that “SharpB” and “SharrCem” will pay in terms of non-fulfillment of investments.

Disgusted by this development, Sharr Beteiligungs GmbH on January 29th 2019 had submitted the announcement of arbitration, the process he won in March of this year, and the payments were made by the AKP, worth over 1.8m euros.