Part of the property of the "Dr. Simo Milošević" Institute will be sold at a tender, only if the minority shareholder does not participate in the restructuring plan of this institution, while the Government will form a body that will deal with the spending and control of state money in this process. Sale of state shares, i.e. privatization of the Institute - is not an option.
This was officially told to "Vijesta" by the Government, when asked how they will ensure the transparency of the sale of part of the Institute's property and whether they will agree to sell state shares to the minority shareholder "Vila Oliva", whose co-owner it is. Zarko Rakcevic.
At the end of November, the government presented the restructuring plan for the Institute, which was carried out by the State University and is worth 106,81 million euros. The plan will not be publicly available until it is approved by the Institute's shareholder meeting, but its main backbone is the sale of the first phase of the Institute, which would reconstruct the second phase with the money from the additional loan and bring it to the level of four stars. The first phase would be sold for 28,25 million, and the loan would be taken to the value of 14,46 million.
"As the only legal option, the option was proposed whereby the state and the Institute invest funds in the proportion of 60:40 percent. Therefore, the restructuring plan envisages the sale of part of the property only on the condition that the minority shareholder does not participate in the restructuring process by investing in the Institute. If the minority shareholder decides to invest, the plan is adjusted to his proportional investment and according to the ownership share in the Institute. A possible sale would be carried out exclusively through an open tender procedure and with full transparency of the process. Also, the plan itself foresees a control mechanism - the establishment of a body formed by the Government which, in addition to the executive director and the board of directors, would implement and therefore control the spending of state money", said the Government.
For the sale of the first phase of the Institute, the Government needs a two-thirds majority, which it does not have if it does not buy shares from small shareholders who have 43,5 percent of the share capital. The government has 56,5 percent ownership, while the largest minority shareholder "Vile Oliva" has 27,4 percent.
They valorize Tito's villa, "Inex" and apartments
In addition to the first and second phases on the foam from the sea, the Igalo Institute also owns the "Galeb" villa, better known as Tito's villa, the "Inex" restaurant, apartments and other facilities. When asked what will happen to that property, the Government said that everything will remain the property of the Institute, that it will be part of the business plan, and that it will be valorized for the company's activities, in order to generate income.
The company "Vila Oliva" told "Vijesta" the day before yesterday that they are ready for an open recapitalization, to cover the entire debt of the Institute and that there is no need to sell the first phase. As they claim, they are ready to make a better offer for state shares than the Government, that is, to pay them up to 50 percent more expensively. They added that in that case there would be no need for state aid.
"There is no bankruptcy even if a decision on open recapitalization - issuance of shares worth 24 million euros of overdue liabilities - cover losses is made at the shareholders' meeting. We are ready to participate proportionately with eight million to cover the losses, and if none of the other shareholders wants or is able to participate in the recapitalization - to cover the losses, HTP "Vile Oliva" together with partners and banks will cover the entire debt themselves and eliminate the risk of bankruptcy. The Institute's threshold of profitable business at this time of 13,5 million euros is not in question. So there is no need to sell the first phase", emphasized the company.
However, from the Government, they state that the sale of the state package of shares or the Institute's debt of over 25 million euros, which would be covered by "Vile Oliva" through recapitalization, would lead to the state losing the status of the majority owner of the Institute. They point out that by transferring to private hands, this health and rehabilitation resource would be irretrievably lost, while the provision of a service of general economic interest would be questionable.
"Thus, the state would not be able to guarantee that the Institute will remain a rehabilitation center for the benefit of all patients and citizens. The government, as the prime minister Milojko Spajic and explicitly announced, she does not want the privatization of the Institute, but its long-term recovery, which she proved by providing an additional 4,5 million euros from the annual budget, through increasing the price for patients of the Health Insurance Fund, which no previous government has significantly increased since 2013 , which is the main reason for the Institute's financial difficulties. The government is determined to invest over 60 million euros for the benefit of the Institute, the city of Herceg Novi and all citizens, and it is this determination that distinguishes this and all previous governments, which proposed privatization (in 2018, the Institute was supposed to be sold for 35 million euros) or awarded illegal state aid, which was the case of the government he led Dritan Abazovic", said the Government.
The Government previously said that small shareholders have two options, to sell shares or to invest side by side with the state, and that anything beyond those steps leads to bankruptcy. They stated that the profitability threshold of the Institute is unquestionable thanks to them, because they ensured positive business through increasing the price of services.
They also pointed out that the Institute cannot provide long-term sustainability without an extensive reconstruction of the facilities, due to outdated equipment and dilapidation. This, they claim, is only possible with the investments estimated by the Faculty of Civil Engineering, because some parts of the Institute are in extremely bad condition and must be urgently rehabilitated. They added that they will not allow patients or employees to be endangered, so a significant investment is the only way to raise the quality of service and bring back foreign patients who left the Institute due to the state it has been in for many years.
The Government has already said that there will be no layoffs in this process, and "Vijesti" also asked the Institute's Trade Union about the restructuring plan. Specifically, what do they think about it, how many employees are working in the first phase, whether a workers' strike is possible due to the sale of assets...
President of the Trade Union Biljana Ribar pointed out that she cannot answer the questions, because the plan has not been delivered to them, so they are informed about everything from the media.
The opposition is asking for consultative hearings
Miloš Konatar, the head of the parliamentary group of the Citizens' Movement of the URA, announced that they do not support the sale of the first phase of the Institute, but also that they will ask for a consultative hearing on the entire plan from Spajić, Minister of Spatial Planning Slaven Radunović, the author of the plan...
He said the day before yesterday that the URA is against this proposal, which he claims will sell half of the Institute's assets.
"Spajić said that he would not sell the Igalo Institute, and he hid from the public his intention and plan to sell the first phase of the Institute, the solitaire and the children's department, which is half of the Institute's assets. That is why we will ask for a consultative hearing of Spajić and Radunović with the Assembly, which would be attended by the authors of the plan, as well as representatives of minority shareholders, because the public must be familiar with all the details and facts regarding the Institute", added Konatar.
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