Government to Sell 60 Million Kuna Worth of Properties This Year

Total Croatia News

The State Property Minister has accused state-owned companies of agreeing to unfavourable contracts.

The State Property Ministry has announced the sale of 44 state-owned properties. State Property Minister Goran Marić said that approximately 60 million kunas in revenues are expected from this tender, reports Večernji List on 3 August 2017.

“So far this year, we have already received income in the total amount of 20 million kunas. This means that the total income for the year will be around 80 million kunas. Considering the total budgetary expenditures, that is a relatively small amount, but when comparing it with the budget allocation for the Ministry itself, then it is a substantial sum of money since the whole Ministry has the annual budget of just 50 million kunas,” said Marić.

Responding to questions about leases of business premises for state institutions, Minister Marić said that many illogical contracts had been discovered.

“Leasing office space is a normal thing and it is necessary. But, some of the clauses that have been concluded in these lease agreements are really difficult to comprehend for a reasonable person,” said Marić.

The Minister also said that Plinacro, a state-owned company, was involved in suspicious business dealings. According to Marić, the company signed very unfavourable contracts whose termination would lead to damages in the amount of a whopping 240 million kunas, which would have to be paid by the company.

“We have tried to refinance these loans, together with the Supervisory Board and the Board of Directors of the company. We have already found much lower interest rates, up to two-thirds lower than previously, which would save us about 100 million kunas just with regards to the interest rates. However, the contract is such that we have to wait for its termination,” said Minister Marić.

“We also have to wait for the termination of the contract signed by the Ministry of Justice for a building in Zagreb, which has been concluded for a period of 13.5 years. But, wherever possible, we have already implemented changes, and we have saved about 40 million kunas just this year on lease agreements between ministries and agencies on the one hand and individuals on the other,” concluded the Minister.

Translated from Večernji List.


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