10. 06. 2005

NOVOSTI PRIVATISATION

BELGRADE, June 10, 2005 – The Serbian government has put out of force the agreement on ownership rights of federal public media institutions. This agreement consigns to the federal authorities, among other things, the ownership rights and puts the daily Vecernje novosti at their disposal. Minister of Justice Zoran Stojkovic stated at the press conference held after the Parliament session, that the Serbian government decided to temporarily halt the privatization of the Novosti Company. Minister Stojkovic stated that this had been done in the interest of protecting the property of Republic of Serbia, since the ownership structure had not been properly established. He said there was no clearly defined structure of ownership relations within Novosti and that it was necessary to halt the privatization, so that the responsible body would establish the true state of affairs. Minister also said that the Government had decided to dismiss the Serbian public attorney Sead Spahovic for not protecting the interest of Novosti Company. Stojkovic said that Spahovic had been dismissed "so that a person who would take better and more active care of Serbia's property and its interests would take his place". According to the records of the Central Registry, the state owns around 30 percent of Novosti shares, while 70 percent is owned by the small shareholders. Director General and Editor-in-Chief of Novosti Company Manojlo Vukotic earlier proposed the halting of the privatization of Novosti until the Serbian government took over its part of the company. German WAC has offered 14 million euros for Novosti, but Vukotic said the company was worth much more.