Zastava tender: Two ministries send conflicting signals

Kragujevac automaker Zastava sources say a tender to sell the company should be called in March 2008. However, media reports suggest that the Ministry of Economy and Regional Development, headed by Mladjan Dinkic (G17 Plus) have "no knowledge" about the ongoing negotiations for the sale of the factory, which Trade Minister Predrag Bubalo (DSS) recently said were "underway with important partners," without giving any further details. Zastava tender: Two ministries send conflicting signals "Still, it seems things are not exactly as the minister said they were, since interested parties must first learn about the conditions, and then proceed to buy something." "As far as we are aware, a tender to sell Zastava has not been called," the Dinkic ministry sources told Belgrade daily Danas. At the same time, a list of companies that will be engaged in privatization negotiations for the struggling Kragujevac company has been reduced, to leave out Ford, which several days ago acquired a plant in Romania and is no longer interested in Zastava. General Motors, Fiat, TATA Motors and several Chinese companies are still said to show interest in taking part in the tender. As for the Zastava leadership, no comments were available on Bubalo's recent statement about the company's privatization, but the daily has unofficially learned that they, too, were caught by surprise by such news. Many flaws seem to be apparent in the procedure likely to be taken. Firstly, statements coming from the government that the tender will be announced in December, in other words, in two months' time, in effect make the move impossible, since gathering tender documents for such a large industrial system as Zastava takes much longer, at least six months, the company representatives said. They added that calling a tender in March 2008 would be "a good idea", provided preparations started right away. "What is currently being done with the company, as well as information coming from the government, is highly unprofessional, since the Privatization Agency has not yet even sent questionnaires to Kragujevac, necessary to start assembling the tender documentation," Zastava sources explained.

Zastava tender: Two ministries send conflicting signals

"Still, it seems things are not exactly as the minister said they were, since interested parties must first learn about the conditions, and then proceed to buy something."

"As far as we are aware, a tender to sell Zastava has not been called," the Dinkić ministry sources told Belgrade daily Danas.

At the same time, a list of companies that will be engaged in privatization negotiations for the struggling Kragujevac company has been reduced, to leave out Ford, which several days ago acquired a plant in Romania and is no longer interested in Zastava.

General Motors, Fiat, TATA Motors and several Chinese companies are still said to show interest in taking part in the tender.

As for the Zastava leadership, no comments were available on Bubalo's recent statement about the company's privatization, but the daily has unofficially learned that they, too, were caught by surprise by such news.

Many flaws seem to be apparent in the procedure likely to be taken. Firstly, statements coming from the government that the tender will be announced in December, in other words, in two months' time, in effect make the move impossible, since gathering tender documents for such a large industrial system as Zastava takes much longer, at least six months, the company representatives said.

They added that calling a tender in March 2008 would be "a good idea", provided preparations started right away.

"What is currently being done with the company, as well as information coming from the government, is highly unprofessional, since the Privatization Agency has not yet even sent questionnaires to Kragujevac, necessary to start assembling the tender documentation," Zastava sources explained.