A judge’s ruling may spell the end of more than 100 years of history for a Jajce firm, Elektrobosna, once a giant of Yugoslav manufacturing. Much of the firm’s assets will be sold at auction in April.
New East, a British firm that promised to put 21 million KM into the financially ailing Elektrobosna, but actually put in only about 4 million.
Before the war, Elektrobosna employees had plenty of safety equipment. Today, serious injuries can result from lack of items as inexpensive as a 10KM pair of work gloves.
A list of major owners and creditors of Elektrobosna.
For seven years, prosecutors got tips and information from outraged workers and former officials urging them to act against criminal activity within Elektrobosna. Federation financial police found that the complaints had merit. Yet, with the company now in financial collapse, no prosecutor ever went to court in the case.
|Story 2: Financial police find blame |
The financial police of the Federation of Bosnian-Herzegovina audited Elektrobosna and Elektrobosna-N at the request of state prosecutors, and in an administration report last year blamed 13 people for the company’s problems.
Elektrobosna once employed 3,000 workers and brought prosperity to Jajce. Workers felt taken care of when company managers paid for medical care. Now, injured workers find they must pay for their own care.
A new chapter in the century long saga of Elektrobosna opened when a Bosnian businessman living in Germany wrestled control of the bankrupt company this year from the Croatian businessman financial police suspect tried to gut it. CIN looks at the power struggle that helped turn one of Bosnia’s brightest hopes into a financial disaster.
Elektrobosna subsidiary is sold at auction to a company shareholder who promises to start up production and bring back workers in a month. The new owner will not have to pay most of the company’s huge debt.