The Government of the Federation of Bosnia and Herzegovina (BiH) and the Federal Ministry of Energy, Mining and Industry issued a statement regarding the situation in the defense industry company Pretis.
They stated that “unfortunately, recently, for reasons unknown to them, false information has been circulated, which clearly aims to undermine the reputation of companies in the defense industry, especially Pretis, thereby directly threatening the shared vision for this company to become a leading defense industry firm, not only in BiH but beyond.”
“Joint decisions for the success of companies”
“From the very beginning of the process of saving the defense industry, we have paid special attention to appointing capable and responsible staff to the company managements – people who will act lawfully and transparently. The results are visible through the multiple increases in revenue these companies achieve today, which confirms the correctness of our approach,” the Federal Ministry of Energy, Mining and Industry added.
They emphasized that, as a ministry, they maintain continuous contact and dialogue with co-owners of defense industry companies, with the goal of building partnerships.
“We make decisions jointly, in the interest of a successful future for our companies. Examples of this approach include Ginex, Pretis, Igman, TRZ Hadzici, and others. Through this practice, we also achieved cooperation with the company Regulus from the very beginning, including several of their team members. Meetings were held both in Sarajevo and Washington, whenever possible. The last meeting was held in Washington two months ago, when we also met the company owner. In most cases, our thinking was the same – that Pretis and Binas must have their own development concepts. As a responsible government, we are aware of the need for additional communication with Regulus management. After receiving several documents from that company in recent weeks containing false information, we immediately informed them and presented the facts,” the statement said.
“False information aimed at undermining the reputation of defense industry firms”
The proposals they submitted for improving Pretis’s work, as added in the statement, are precisely those which the FBiH Government itself supports in all defense industry companies – stronger contribution to development by management, strengthening management with additional members, transparency in operations, audit of past business periods, and other important activities.
Following this, the FBiH Government last year, as a sign of commitment, with the consent of other co-owners, expanded the number of management board members in Igman, and recently did the same in Pretis, in order to more effectively implement further development through a broader and more responsible management structure.
“It is important to emphasize that in Pretis, there was no expansion of the Supervisory Board, as was falsely stated in some reports. Whether such an expansion will occur in the future will depend on the joint assessment of the co-owners,” the statement said.
They pointed out that recently, false information has been spread “clearly aimed at undermining the reputation of defense industry companies, especially Pretis, thereby directly threatening the shared vision for this company to become a leading defense industry firm, not only in BiH but beyond.”
“Who and why is bothered by Pretis’s initiated development path, which is manifested through the opening of new plants, modernization of production, and stronger integration with other defense industry companies, remains to be seen in the time ahead. One thing is certain – neither the Ministry nor the Government will allow it,” the statement emphasized.
Audit of all defense industry companies
They specifically noted that the Federal Ministry of Energy, Mining, and Industry initiated a comprehensive audit of the operations of all defense industry companies in the FBiH by an international auditing firm. The aim is to determine legality in operations over the past years, identify possible omissions, and better plan future development.
“We are aware that our decision for the integrated development of the defense industry has disrupted the interests of many speculators. That is why we want to inform the public about some specifics of business processes, which those speculators know very well. Namely, in certain companies, like Pretis, due to the nature of cyclical business processes, it happens that during phases of investment cycles, a temporarily less favorable accounting/balance sheet position occurs compared to the previous period. However, after the complete production cycle and additional investments, the situation stabilizes and significantly improves,” the Federal Ministry of Energy, Mining and Industry said in the statement.
“Pretis is not in serious trouble”
In addition, it is stated that last month a bonus was paid to employees, which is certainly an indicator that Pretis is not in serious financial trouble, as is being suggested. The financial status recorded on a single day is not a true reflection of a company’s success but often a tool for manipulation. Another indicator that Pretis is on a development trajectory is the fact that 20 new workers will soon be employed directly in production.
They emphasized that the process of recovery of defense industry companies has begun and that a detailed analysis of the supply chain in all our defense industry companies will follow, with the goal of further improving operations and financial standing.
“The public must know that in the coming period new successes await us: Binas, Pretis, TRZ Hadzici, BNT Novi Travnik, Ginex Gorazde – all these companies are actively expanding capacities and investing in development, which is essential for the future of these firms. Part of these investments is financed from regular business operations, and part directly by the Government of FBiH,” the statement adds.
In the upcoming period, they expect significant investments to be realized as a joint financial venture with other co-owners. They stated that the ultimate goal is to attract serious business partners to BiH.
