The criminogenic background of the establishment of GEOLP, a company of Elektroprivreda BiH: SIPA is investigating the case

Autor: Direkt Aktuelno Društvo Ekonomija
12 minuta čitanja
Već je potrošeno više od 300 miliona KM collected information about the company that needs to take care of workers from FBiH mines. The unions hired lawyers. Behind the story are hidden relations with private companies such as Lager and the payment of huge sums for the purchase of coal

Već je potrošeno više od 300 miliona KM
Written by: A. Dučić/Fokus

The State Agency for Investigation and Protection (SIPA) formed a case in which it investigates the events related to the formation of the company GEOLP, which is 100 per cent owned by Elektroprivreda BiH. As Fokus learns, the investigation was launched after information was presented about shady activities aimed at the circulation of huge amounts of money in the context of coal procurement.

SIPA stated for that “respecting the fact of the secrecy of the work of police officers, concrete measures and actions cannot be disclosed to the public”.

Namely, Elektroprivreda BiH founded GEOLP on July 30, 2021, with a capital of 4.1 million KM, in order to take care of redundant workers in it, and as part of the restructuring process of coal mines operating within the Elektroprivreda BiH concern. Also, GEOLP was formed to take over a number of activities from the mine, such as laboratory tests.

However, this has not happened to date, and the background to everything is, to say the least, criminogenic. According to Fokus’ knowledge, SIPA officials visited Elektroprivreda BiH and several other entities last year and then found that this company has only one employee and that it does not have the necessary conditions to do what the adopted decision and statute require it to do. These are, among other things, geological research, laboratory research, design, training, protection, and rescue.

One of the key ones is the laboratory testing, and the decisions that were made with the aim of taking over the laboratory at the end of 2022, as our portal has learned, led to a rebellion among the miners, especially “Kreka” and “Kaknja”. These two mines have accredited laboratories for testing the quality of coal, which are now being moved to the new company GEOLP.

The Assembly of the “Kreka” Mine, as we have learned, brought changes to the Ordinance on Organization before the very New Year, on December 29, 2022, in which they delete or shut down a number of services in this mine, namely for technical and laboratory tests. Also, the new ordinance abolishes the service for design, as well as for exploratory drilling and drainage wells. So, we are talking about activities that are intended for GEOLP.

The amendment of the Ordinance would not have been so controversial if this decision had not been made without the knowledge of the trade union, which was bypassed in this case, which should not have happened for several reasons, especially when it comes to the systematization of jobs and taking care of redundant employees. On January 9, 2023, as confirmed to us, the Board of Directors of the Independent Union of Mine Workers of FBiH met. In the conclusions that were reached, among other things, it is indicated that the new subsidiaries of the concern (meaning GEOLP) are still a huge unknown to the workers, which is why, as stated, one gets the impression that the establishment of “imaginary companies is intended to carry out the final the devastation phase of brown coal mines”.

In the conclusions, it is also pointed out that the management of the EPBiH in the past period implements unilaterally determined decisions related to the labour law status of workers. Also, the trade union organization of the “Kreka” coal mine hired a lawyer to initiate a court case to protect the rights of workers. They state that the goal is to oppose the “illegal legal actions of the employer, the EPBiH, the director and the procurator of the ‘Kreka’ Coal Mine”.

The president of the “Kreka” Mine union, Zuhdija Tokić, tells that the subsidiary company GEOLP is an absolute stranger to this union, and notes that the “Kreka” Mine Assembly, while completely ignoring the union, adopted changes to the Ordinance on Organization in which a number of services are extinguished.

– The fact that activities such as designing, laboratories and drilling, which are taken from the mine, are given to some kind of imaginary company, is devastating for the union. In the Collective Agreement that is in force, in Article 39, paragraph 2, it is said that the employer undertakes not to assign the tasks of the registered activity to other legal or natural persons whose assignment would cause the termination of the employment contract of the workers employed by the employer. This is a classic violation of the Collective Agreement”, states Tokić.

He adds that the problem is not the subsidiaries, but the problem is that the acts that are in force are violated. He points out that the workers who need to go to these companies have no idea what kind of environment they are going to and under what kind of collective agreement.

– What will happen to their rights without a union? They have already sent the workers to declare whether they accept or not to be redistributed to that company. They have already started it. What will happen to the worker who refuses? When it comes to sampling, you have a negligible cost of coal in the mines. The average selling price that we placed on the thermal power plant is 50.15 KM, and the production costs us 83.50 KM. Imagine now when the taking of samples will be strictly in that dependent company GEOLP and when they will then start delivering us a negative bonus, so it will be in the millions, says Tokić for

He notes that neither the statute nor the regulations of GEOLP have been presented to the workers and that they have no insight into precisely defined rights and obligations.

– We are asking Novalić, Đindić, Andelia for official information, and an urgent meeting with all the mining unions. It concerns hundreds of workers who have families and children. We have no communication with the management of the “Kreka” Mine, which does not communicate with the union. We will sue them and win, but those who run EPBiH and the company will not be held accountable, but the mines and workers will bear all the damage”, he says.
As we have researched, the background of this story is also hidden in the relations of Elektroprivreda BiH with private companies both in Herzegovina and in the territory of the RS, headed by influential businessmen, to whom the state enterprise EPBiH has paid for coal, machinery and services in the past years in huge amounts. The goal of the new company is to expropriate the mines and enable even more efficient “cooperation” with private individuals.

This is also the information that was previously presented to SIPA officials, who, during their visit to Elektroprivreda, established that the newly formed company GEOLP, in addition to a number of deficiencies, does not even have adequate laboratories. It was for this reason, it was confirmed to us, that before the end of 2022, the management of Elektroprivreda BiH submitted requests to the BiH Accreditation Institute to place two accredited laboratories, those of RMU “Kreka” and “Kakanj”, under the authority of GEOLP.

This institute told us that, except for the information they publish publicly or in the case of an agreement between the accreditation body and the conformity assessment body, all other information obtained during the accreditation process is considered protected and must be treated as confidential, which is why they could not give us the information. They referred us to the list ( of accredited bodies for compliance assessment, which was published on December 27, 2022. There is no GEOLP on it, but on the other hand, the laboratories in the “Kakanj” and “Kreka” mines are still on this list.

It is interesting that in the Elaboration of the techno-economic justification for the formation of GEOLP, obtained by Fokus, it is stated that “coal control can only be carried out by a company that meets the standards and that has the accreditation of a test laboratory and an inspection body of type A”. This is exactly not GEOLP, since the type A inspection body is an independent third party and only inspects others, and GEOLP is a subsidiary company 100 per cent owned by Elektoprivreda BiH, which owns the mines, and whose ores should GEOLP examine?!

Taking all this into account, the question arises why the Management Board of Elektroprivreda BiH, headed by General Director Admir Andelia, makes a “back-and-forth” decision in order to train the new company GEOLP?

The answer to this question lies in the business cooperation between Elektroprivreda BiH and the company Lager from Posušje. Namely, the state-owned Elektroprivreda BiH has been paying fabulous sums for the purchase of coal to this private company, which has been burdened with numerous scandals for a long time. That’s how EPBiH, according to Žurnal, for the procurement of 100 thousand tons coal in December 2021 paid 9.9 million KM.

Last year, on April 29, Lager was again paid 20.2 million KM for 150,000 tons of coal, and on October 7, 2022, EPBiH signed a contract with Lager for the supply of even 600,000 tons of coal! The work is worth 105.1 million KM (without VAT).

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