HIGH REPRESENTATIVE OPPOSES PRIVATISATION PLAN IN BOSNIA

( Editorial: --> 6627 ) SARAJEVO, 28 Aug (Hina) - The Office of the High Representative (OHR) in Bosnia-Herzegovina has serious objections to the privatisation model proposed by the authorities of the Croat- Muslim Federation, an OHR spokesman said Friday. The OHR has also requested an investigation into privatisation and financial restructuring processes which were carried out in some companies during the war, especially on the territory of former Herzeg-Bosnia, OHR spokesman Simon Haselock told reporters in Sarajevo. Another special cause for concern is the plan the Federation authorities intend to use in returning debt to demobilised members of the Bosnian army and the Croatian Defence Council (HVO). According to that plan, instead of military foreign currency savings books demobilised soldiers would be given certificates as means of payment in the privatisation process. Certificates would also be given to those citizens whom entity authorities owe money on the basis of their old foreign currency savings or general claims. The most important problem is the state's debt to soldiers, Haselock stressed. The Federation authorities are estimating this debt on a completely unrealistic basis, Haselock said adding the Federation was planning to allocate even DM nine billion worth of certificates to demobilised soldiers. According to business experts, this move would in the start decrease the value of certificates considering the relatively small quantity of assets which are worth privatising and at the same time bring into an unfavourable position those citizens who have the right to certificates on other bases. The move is obviously politically motivated and aimed at securing voters' support, Haselock said. It is our position that this will block the privatisation process, he added. High Representative Carlos Westendorp has already warned about this by sending a special letter to the director of the federal Privatisation Agency in July but has received no reply, the OHR spokesman said. Disregard for these warnings could prompt the High Representative to take additional measures in the form of a decision on shutting certain categories out of the privatisation procedure, Haselock said. Haselock recalled cases from the recent past when the privatisation process was violated through false property value assessments. It was small groups of investors with strong political connections who profited from those cases while citizens who participated in the establishment of companies were duped, Haselock said. Such cases happened all over the country, especially in Herzeg- Bosnia but also in Sarajevo, he said. (hina) rml 281702 MET aug 98