Franz Kafka, “The Trial”
Following the arrests in August 2010 media stated (B92, RTS, Večernje novosti, Blic, Politika, Press, Vreme) that in January 2010 the Privatisation Agency cancelled the privatisation contract with Tomislav Đorđević for Hotel Prag because of his failure to meet contractual obligations.
In July 2009 the Privatisation Agency informed Tomislav Đorđević that the privatisation contract was going to be terminated due to alleged lack of continuity in the prevailing business activity for which the hotel is registered. This notice is sent by the agency on the due date for payment of the third instalment of the purchase price, and it de facto terminates the contract following the expiration of the 60 days notice period.
In its notice the Agency argues that business continuity is not achieved because revenues in 2009. were less than revenues in 2008. The Agency is not concerned by the fact that the hotel was completely refurbished during 2008 and 2009, at a cost of almost three million euro.
The very interpretation of business continuity through turnover levels is deeply problematic because, as such, it is not mentioned in either the privatisation contract or in the Law on Privatisation.
Interpreting this move as an attempt by the Agency to unjustly deprive him of his property, Tomislav Đorđević in October 2009 filed a lawsuit against the agency to the competent commercial court. Without waiting for the outcome of the dispute in court, thereby taking on the role of the court, the Agency declared in January 2010 that the privatisation contract is terminated, declaring Tomislav Đorđević as acting in bad faith.
More on how the Privatisation Agency is able to bypass the law and competent courts, can be found here.
The details and documents from the commercial disputes between Tomislav Đorđević and the Privatisation Agency regarding Hotel Prag can be found here.
Details of the criminal proceeding for alleged abuse of office in Hotel Prag can be found here.
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