Government gives a new company 3bn dinars and 621 land plots previously owned by PKB Corporation

On April 2, the Serbian government formed a new company, Agroindustrijska Korporacija – Nekretnine d.o.o., to which it transferred assets worth RSD 4.9 billion of the former PKB Corporation.

This includes RSD 3 billion (25 million euros)  in money transferred to the company’s account and land worth RSD 1.8 billion, i.e. 621 land plots of urban building land, agricultural, forest land and the assets of the former PKB Corporation. The new company will be engaged in the sale of real estate.

Agroindustrijska Korporacija is a new name for the former PKB Corporation, which it got in April 2021, two and a half years after the Serbian government sold 16,785 hectares of land in the municipalities of Palilula, Surčin and Zrenjanin, as well as buildings worth a total of EUR 98 million, in the process of privatization to the United Arab Emirates company Al Dahra in 2018. The entire agreement was worth EUR 104.7 million and it also encompassed the sale of equipment, spare part stock and the stakes in certain related companies.

At the time, the General Manager of Al Dahra, Vojin Lazarevic, said that the company would invest EUR 15 million in PKB by March or April 2018, which was half of the investment planned for the next three years. He also told Tanjug news agency that, under the agreement, Al Dahra had with the Government of Serbia, the company should invest EUR 30 million in the next three years and that now, half a year after PKB’s acquisition, it would invest 50% of that amount. 

However, a few years later, media reports came out, including several videos, that the livestock (namely cows) on the company’s premises had been severely malnourished, that workers had very low salaries, that the collective job agreement had not been signed and that the promises given by state officials that the company would prosper after privatization had not been fulfilled.

PKB Corporation was founded in 1945, with headquarters in Belgrade, the Federal Republic of Yugoslavia. It was the largest agribusiness company in the former Yugoslavia, offering a variety of agricultural services. At its peak, it had 42,000 employees.

(eKapija, 04.04.2024)

This post is also available in: Italiano

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