At its sitting held on 9 February 2006, the Privatisation Committee of the National Assembly of the Republic of Serbia endorsed the Report of the Ministry of the Economy on Activities of the Privatisation Agency for January 2006, along with the Agency’s Programme of Activities for February 2006.

The sitting also saw the endorsement of the Report of the Ministry of the Economy on Activities of the Share Fund of the Republic of Serbia and the Central Securities Registry, Depository and Clearing for January 2006.

Committee members discussed a set of the Privatisation Agency’s reports regarding several dairies throughout Serbia: the report on the fulfilment of contractual obligations at Pancevo-based Mlekara, the report on implementation of the contract on sale of socially-owned capital of Kragujevac-based Mlekara, Nis-based Niska mlekara, and Pirot-based Mlekara, as well as a report of the Share Fund of the Republic of Serbia on trading in shares of Senta-based Mlekara from the Share Fund portfolio.

After a lengthy discussion, the Privatisation Committee resolved to advise the Privatisation Agency to terminate sale and purchase contracts with Goran Ljubicic, the buyer of all five dairies. The Committee also advised the Ministry of Finance to refund part of assets raised through privatisation to the dairies, in order for damages caused in the course of privatisation to be recompensed. The National Bank of Serbia was also advised to consider prohibiting commercial banks from issuing guarantees for mortgages over assets of companies where privatisation has not been completed yet. In the opinion of Committee members, before registering mortgages over socially-owned assets, courts should seek consent of the Privatisation Agency.

Having discussed the report of the Ministry of the Economy on the regularity of a public auction, held on 27 October 2003, for the sale of Novi Sad-based Stan-progres, the Committee resolved to adopt a conclusion after proceedings initiated before the Supreme Court of Serbia finish.

The Committee also considered the report of the Privatisation Agency on the fulfilment of contractual obligations of the buyer of Nis-based Srbijaturist. The report states that the Agency had undertaken the obligation to take appropriate measures, after analysing documentation obtained in the course of inspection, within ten days; consequently, the Committee resolved to adopt a position on this issue after receiving a complete report from the Privatisation Agency.