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To this end, an agreement was signed between the FBiH government and Aluminium Mostar management, and adopted (with amendments) in the FBiH parliament. It involved solving ‘open questions’ – namely, the strict legal rules and procedures on allowable privatisation methods, and ways to determine the company’s ownership structure. This agreement established new rules on the structure of state-owned capital in the company and on the privatisation methodology. Once privatised, out of the 88 per cent of the state-owned capital subject to privatisation, 44 per cent of the selling price would be given to the employees made redundant, while the remainder would be retained by the company itself. The agreement introduced an ad hoc committee in charge of implementing the agreement. As a result of this negotiation, the rules differ substantially from the current Law on Privatisation in FBiH.23 This agreement has set a precedent, and illustrates how business and political lobbies can persuade governments to amend laws and allow privatisation. The general observation is that the company carried out the privatisation process itself, in contrast to other FBiH companies, and in a sui generis compromise with the FBiH
government. In correspondence with TI BiH’s representatives, the FBiH prime minister, Nedžad Brankovic´, admitted that the Aluminium Mostar privatisation was a clear political compromise between Bosniak and Croat politicians in the FBiH.24 Nebojsˇa Milanovic´ and Aleksandra Martinovic´ (TI Bosnia and Herzegovina)
Additional reading Centre for Investigative Journalism; www.cin. ba. TI BiH, Bosnia and Herzegovina at the Crossroads: EU Accession or a Failed State? (Sarajevo: TI BiH, 2007). Advancement of the National Integrity System: Suggestions for the BiH Anti-corruption Strategy (Sarajevo: TI BiH, 2007). TI BiH and F. E. Stiftung, Bosnia and Herzegovina 2008: Role and State of Media (Sarajevo: TI BiH, 2008). US Department of State, Bosnia and Herzegovina: Country Report on Human Rights Practices – 2007 (Washington, DC: Department of State, 2008). TI Bosnia and Herzegovina: www.ti-bih.org.
23 Official letter from the FBiH prime minister, Nedžad Brankovic´, to TI BiH, 26 October 2007. 24 Brankovic´, 2007.