In order to save the "Dr. Simo Milošević" Institute, it is necessary to provide not only 7,4 million euros for unblocking the account and an additional 800 thousand for the payment of two net salaries, but also about 6,5 million euros, which is the amount of debts due to lawsuits by employees, about 11 million euros for other debts, as well as at least 35 million euros for its reconstruction to be a respectable and sustainable company. That is a total of around 60 million euros.
In order for the state to take complete care of the Institute, and thus the responsibility, it should also buy out shares in private ownership for about eight million euros.
These data are found in the financial and audit documents, which are now being considered by the Government in order to find a solution. In addition to the danger of continued blocking of accounts, which would lead to bankruptcy, an equally great danger for the Institute to stop working is to lose the remaining professional staff.
On July 18, the Deposit Insurance Agency of Serbia blocked the Institute's account for 7,5 million euros, out of a total of 9,2 million euros, which, with all expenses, could cost this dispute now, after the end of a multi-decade dispute and a final verdict. . Five years ago, there was an offer to settle this debt with one million euros, but it was rejected at the time.
After the discussion between the finance ministers of Montenegro and Serbia Aleksandar Damjanović i Siniše Malog it was announced that they discussed the possibility of reducing this debt by the amount that Montenegro is demanding from Serbia in the name of the earlier settlement of obligations regarding the compensation of old foreign currency depositors, as well as for the Health Insurance Fund of Serbia to become a user of the Institute's services or to subscribe for the remaining amount of the debt . According to "Vijesti" information, Montenegro is demanding about 1,3 million euros from Serbia in the name of debt for old savings.
As announced at the time, it remains for the Governments of the two countries to make the necessary decisions on offsetting this debt, without it being illegal state aid to the Institute, as well as to agree on the signing of a contract between the Institute and the Serbian Health Insurance Fund.
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In the meantime, the Deposit Insurance Agency would withdraw the account blocking order. However, this is also legally difficult to define because the blockade was created on the basis of a legally binding decision and the collection is part of the judicial or bankruptcy authorities, which cannot formally be ordered by the executive power.
Workers can claim 6,5 million
If the account were to be unblocked and the money started to arrive, the account would be blocked due to some of the lawsuits of around 500 current and former employees who claim a total of around 6,6 million euros.
In June, the government paid the Institute 600 euros for the payment of arrears, in order to prevent the announced strike, but most of the money immediately went to block accounts for lawsuits by employees and court costs. As the Government cannot just pay money even to companies of which it is the majority owner, the legal basis for the payment of that aid was the advance of the Health Insurance Fund for future services to the Institute's insured.
Minister of Health, Dragoslav Šcekić, then he said that the state is helping the Institute, because it will not allow the brand of Montenegro to be extinguished, and he called on its management to provide its maximum contribution and to behave responsibly.
Prime Minister Dritan Abazovic he said then that the situation in the Institute is difficult, but that he hopes for a permanent solution that will benefit everyone.
"This is just help to help them overcome the current situation. After this, decisions should be made and the Institute made sustainable", said Abazović.
Since that money did not go to the workers' salaries, the employees are still demanding that the state pay them three back wages.
Additionally, the president of the Institute's Trade Union Marija Obradović told "Vijesta" that she doesn't even know exactly how many workers' lawsuits there are, because they are constantly arriving.
She emphasized that they will continue to arrive until the collective agreement is signed, which, she said, was submitted to the Government on May 11 of this year.
18 million is missing to fulfill workers' demands
Obradović added that by protesting at the border crossings with Croatia, they are demanding the fulfillment of their demands, among them the payment of three back wages for May, June and July, the verification of the Collective Agreement, the resolution of the status of the Institute by buying out the shares of minority shareholders, as well as the permanent solution to the issue of the payment of "Jugobanka" .
To fulfill these requirements, around 18 million euros would be needed.
"Petitions to save the Institute are being signed all over Montenegro, and next Sunday we are in Pljevlje and Bijelo Polje," said Obradović.
According to the data from the financial report for last year, about 40 percent of the total income of the Institute comes from the state. 3,25 million euros were paid to the Institute from the Health Insurance Fund and another 670 from the Ministry of Health for the rehabilitation project for those suffering from covid.
The institute also received about 550 thousand euros from union funds for workers' rest and recreation, as well as 398 thousand for providing services to pensioners.
Last year, the Institute earned EUR 1,35 million from all other domestic users and individual patients. Last year, the Institute earned 4,5 million euros from foreign users and funds. Total expenses were 15,2 million euros, so a loss of around 4,3 million euros was realized.
4,5 million was earned from the rehabilitation of foreigners last year
The Institute extended the cooperation agreement with the University Hospital from Oslo in Norway for four years, as well as signed an agreement with an agency from the Netherlands and Bosnia and Herzegovina for the rehabilitation of their members - pensioners.
Last year, the Institute had revenues of 2,27 million euros from cooperation with Norwegian health institutions, 144 thousand euros from the agency Fonatna from the Netherlands, and 129 thousand euros from the rehabilitation of pensioners from Bosnia and Herzegovina.
A number of other smaller jobs were also completed with specialized agencies and funds from several countries. The contract with "Happy travel" from Bijeljina brought 73.064 euros, with "Spa tours" from Denmark 61.945, the contract for the rehabilitation of Libyan wounded 33.851, for the rehabilitation of children through the Aleksandar Šapić foundation 32.244, from the agency "Rehab" from Sweden 27.198,... 1,9 million euros were received from other agencies and individual users from abroad.
In order to extend the contract with the Norwegians, the Institute had to reconstruct and slightly modernize a part of its hospital capacities.
If the offer of "Philibert" and Rakčević had been accepted, the Institute would now be a modern institution
In 2019, the consortium of the Czech company "Philibert" and the hotel-tourist company "Vile Oliva" from Petrovac, businessman Žarko Rakčević, offered ten million euros at the privatization tender for 56,48 percent of the Institute's state shares, the assumption of all debts as well as 27,94 million euros for investments over a period of five years. The total cost for taking over the majority package of the Institute's shares was worth about 45 million euros at the time.
If the previous offer had been accepted this year, the modernization of the Institute would have been completed.
The then Government of Duško Marković rejected the offer. At the end of last year, the Administrative Court ruled that in January 2020, the privatization process of the Institute was illegally stopped and ordered the Government to continue negotiations.
They were formally continued, but the partner from the Czech Republic no longer had confidence in cooperation with Montenegrin institutions, and the situation at the Institute itself worsened.
In the meantime, Rakćević bought 25 percent of the Institute's shares from the Serbian state for 2,9 million euros, as well as an additional two percent on the stock market.
There is no income growth without serious modernization
In order for the Institute to operate at zero, it is necessary to increase its income by 50 percent, along with cost rationalization and the condition that there are no new lawsuits.
Reports show that such growth would not be possible on the domestic market, but that the Institute would need to expand the contract with Norway, as well as double the income from other partners from abroad.
In order for this to be possible, modernization of equipment and construction reconstruction of almost all hospital capacities of the Institute is required.
According to the privatization plan of the Czech-Montenegrin consortium from 2018, that modernization and investments were estimated at 28 million euros. However, since then, there has been a significant increase in the prices of construction materials and other equipment, so now, according to estimates, that investment plan would cost at least 35 million euros.
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