Aluminij Mostar constituted a loss of 65 million BAM during the first six months of 2019, Federal Financial Police investigates

The Federal Financial Police of Bosnia-Herzegovina submitted a report on the operations of the former Mostar giant and aluminium smelter “Aluminij” to the Government, which refers to the period from 1^st January’14 to 10^th July’19.

The Federation’s Financial Police tracked down all cash flows, and now it is expected that the report will be submitted to the Prosecutor’s Office, on the existence of grounds for suspicion of committed crimes and perpetrators.

The report that was submitted to the Federal Government, states exclusively that the total value of the share capital of “Aluminij” Mostar is 190,110,000 BAM, however, the loss above the amount of capital is as much as 273,638,742 BAM.

To make things worse, the complete assets of “Aluminij” for 408,208,254 BAM are financed from other people’s funds in the amount of 100%, which means that this company does not have its own money at all and is over-indebted.

Furthermore, the aluminium company made a loss of almost 65 million BAM in the first six months of 2019 that exhibits; they made a loss of more than 10 million BAM per month.

The financial statement of the company showed that it has made a total loss of 293,015,492 BAM from 2014 until today. The biggest was in 2018, as much as 70.4 million BAM and the smallest a year earlier, 21 million BAM.

However, the huge losses that forced to the closedown of the company did not restrain the Management from continuing to pay high-paying directors. It was determined that the salary of the General Manager in 2014, when the loss was 49.1 million BAM, amounted to 12,167.96 BAM.

In 2019, when the company collapsed, the director’s salary remained 6,659.93 BAM. The control determined that in the period from 2014 to 2018, the cost of electricity was the highest in 2018 and amounted to 180,078,016.56 BAM, for 121.61 BAM, which is the highest price, paid in the last five years.

Financial checks established that the Management of Aluminij in most cases concluded contracts with customers caused damage to the company in “the way that the selling price of the product was formed at a level below the economically justified price.” All of this resulted in a loss of product sales.