05. 12. 2005

NECESSARY, BUT NOT HASTE, PRIVATISATION OF RTK

KRAGUJEVAC, December 5, 2005 – Radio Television Kragujevac (RTK), the leading electronic media southbound from Danube and Sava rivers, will soon enter the privatisation process. The Government of Serbia gave the consent in October this year for the privatisation of this media company, initiated by the former management of RTK, headed at that time by the Democratic Opposition of Serbia (DOS). The consent of the Serbian Government for initiating the privatisation of this media unsettled the company, but also the Kragujevac City Council, a founder and main financier of Radio Television Kragujevac. Mayor of Kragujevc Veroljub Stevanovic and his associates strenuously criticized the decision of the Government to start the process of privatisation of RTK. Such their position was also supported by the unions and the majority of workers of this media company. The mayor and media staff warned the Serbian Government that RTK was loaded with problems and lawsuits, litigious contracts signed between the company and the cable distributive network SBB, disputable business conducts and financial transactions of the former management, and that as such, the company was not ready for the privatisation. The Serbian Prime Minister then demanded from the government to put the privatisation of RTK ad acta, until the favorable conditions for the continuation of the process were created. On the other hand, part of the local public and people from RTK warned the local government that the privatisation of this media would be illogical before the decision of the Broadcast Council on the frequency allocation. The leading authorities in Kragujevac and RTK believe that the privatisation of this media house would be transparent and realistic only with the frequency and clear relations and finalized lawsuits. Only then the company could be sold for the right price to a buyer who would continue the current operations of the broadcaster. However, others think the city authorities want to sell RTK at any cost to keep it under their control at least until the next local elections. The authorities denied having such intentions, saying that they would gladly get rid of the ballast called the financing of the radio television Kragujevac that costs the government around 500.000 euros a year. They also noted that the city and the people in Kragujvac had invested in this media greatly over the years, and defended it in 1997 in the fierce clashes with the police (when the socialist party wanted to append RTK to RTS), so they did not want to see the company sold for nothing to certain tycoons who have already appeared as potential buyers, but had never had anything to do with the media. The appeals of the city and RTK management to the Government of Serbia had no effect. The Trade Minister Predrag Bubalo recently confirmed the decision of the government to initiate the privatisation of RTK, adding that the “decision itself does not mean necessarily the privatisation”, and that “the problems pointed out by the city of Kragujevac could be attended after the elections of the consultant for the privatisation”. “The Trade Ministry is aware of the damaging contracts and unclear relations in the RTK. We understand that the ministry shares our opinion that without clarification of these issues, the privatisation of the Radio Television Kragujevac could not be concrete and successful. Therefore, the privatisation of this media, which we do not oppose, will not be done hastily after all”, said the Kragujevac deputy mayor Sasa Milenic.