Click
here for the NIJ Archive
Issue No. 164 - March 6, 2000.
Contents:
1. Croatia: SOMEBODY IS YET TO BLAME
By Goran Vezic
2. FRY / Kosovo: RAMBOUILLET - PROGRAMMED MISTAKE ?
By Jasna Bastic
3. Bosnia and Hercegovina: UPCOMING ELECTIONS - NEW
CHANCE FOR CHANGES
By Radenko Udovicic
4. The Czech Republic: THE GOLD PARACHUTE AND CZECH
BANKS
By Petruska Sustrova
Croatia: SOMEBODY IS YET TO BLAME
By Goran Vezic
Tihomir Blaskic, a general of the Croatian Defence Council (HVO) who
became chief commander of this military organisation of the Bosnian Croats
in 1994, was convicted by the International court for war crimes comnmitted
in the former Yugoslavia countries (ICTY) to 45 years of prison. The sentence
judged him responsible for war crimes against Bosniak civilians in Croatian-Bosniak
war in Bosnia and Herzegovina during 1993-1994. He has already served four
years - it was 1996 when ex-commander of HVO voluntarily surrendered
to the Hague court. The court promised him speedy and just trial. It was
not expedient, there is a question of how just it has been.
Blaskic, a former Yugoslav army captain and an HVO general is a scapegoat
for the politics which pushed him first to fight
Bosniaks - Moslems in mid-Bosnia and later extradicted him to the Hague.
It became evident that Blaskic was a naive soldier who was sentenced in
Zagreb, before Hague. Zagreb - intelligence services headed by Miroslav
Tudjman, son of the late first Croatian president - convinced Blaskic to
surrender four years ago. It was somewhat cunning - it was taken into account
that Blaskic is the most innocent of Croatian culprits for war crimes comitted
during 1993 and 1994 in Croatian-Moslem war. Blaskic enjoyed support of
Zagreb and a status of national hero who succeeded in keeping military
control over a Croatian enclave in mid-Bosnia, Lasvan valley. However,
Blaksic didn't maintain his control over all Croatian military units. Some
of them committed heavy crimes, like the one in the village of Ahmici when
116 civilians (children, women and old men) were killed in a day. Blaskic
didn't order the massacre, but he was sentenced as objectively guilty.
He didn't punish the criminals. He probably couldn't.
When Blaskic and his attorneys saw that there was heavy punishment looming
ahead, Blaskic started to fight for his life and became more talkative
about the subjects of his informatin and role of him and others in war
with Bosniaks/Moslems. Since that
moment, Zagreb, president Tudjman and Croatian government have turned
their backs on him and haven't given defense documents which could be positive
for Blaskic. General became a scapegoat, abbandoned and without documents
which could prove the guilt of others for deeds ascribed to him. Also,
one of the HVO generals Milivoj Petkovic worsened Blaskic's situation in
his court testimony.
Blaskic can still file a complaint. It seems that part of the process
will be the most interesting. New Croatian government
promised to cooperate with the Hague court. Even the newly appointed
Croatian president Stipe Mesic was a Hague witness,
which caused a Croatian media witch hunt against him. The turn was
announced on 6th March by Croatian prime minister Ivica Racan. "We have
found an extensive evidence in Zagreb about the war in Bosnia and Herzegovina.
It casts a new light on the events, which have been blamed on Blaskic.
According to the first insights, we can identify real executors who committed
certain crimes like Ahmici. Former government possesed documentation but
failed to give it to Blaskic's defence. This government will do otherwise,
in compliance with our attitude that the truth, no matter what it is, should
be made public" - said Racan,stressing that documentation calls into question
arguments for verdict.
For now we can only guess what documents have been found, but - since
the former government was hiding them - it is rather
certain that they could prove responsibility of now late president
Tujdman and defense minister Gojko Susak, as well as other people from
the former top Croatian political and military echelons. They accepted
Milosevic's plan to divide Bosnia and Herzegovina and tried to implement
it with ethnic cleansing.
In the war between Croats and Bosniaks, some military and paramilitary
formations of Bosnian Croats were directly submitted
to political, not military structures. Croatian democratic union (HDZ),the
leading party of Bosnian Croats, has been functioning as a sister branch
of Croatian HDZ headed by Tudjman. During war with Moslems, chief of Bosnian
HDZ was Mate Boban, a certain Hague candidate were it not for his early
death. Boban was publicly saying that he is no HDZ B-H president but a
mere executor of Tudjman's orders. After Washington Agreement, which created
peace between Croats and Bosniaks, Boban was forced by American pressure
to retreat from politics. He was suceeded by Dario Kordic, the man who
is now awaiting his fate in the Hague prison and who will - if he ever
talks- have a lot to say about the Zagreb role in Bosnia and Herzegovina.
Croatian public is shocked with Blaskic's verdict that has been a bone
in the troath also for the new government. Socialdemocrat - liberal government
stressed several times that cooperation with the Hague is not a political
but a judicial
issue. Drastic verdict against Blaskic is in Croatia considered to
be politicly motivated. There are many who ask for evaluation of further
cooperation with Hague court. They will have their foothold for as long
as the most responsible persons for war and
slaughter in ex-Yugoslavia remain free. Until it happens, the verdict
against general Blaskic will be just a revenge to war pawn
for crimes committed by the lords of war.
***
FRY / Kosovo: RAMBOUILLET - PROGRAMMED MISTAKE ?
By Jasna Bastic
A year after Rambouillet negotiations and NATO intervention in Kosovo,
it is now possible to piece together at least some of the events that show
that the negotiations in Rambouillet have been meant to fail and that NATO
had an altogether different motives for intervention and subsequent placement
of its troops on Kosovo than the so-called "humanitarian intervention"
and aid for Albanian refugees.
The whole background behind the events in Rambouillet and the double
documents that have formerly been unknown, according to current information,
even to some Contact group members, is now more or less well-known
and was first published last year by Andreas Zumach, corespondent of a
Berlin newspapers "Tages Zeitung" at the UN Geneva office. "Rambouillet
was a manipulation. The way attacks on human rights in Kosovo were used
as an argument in NATO propaganda, especially by German politicians, is
a clear case of manipulation", claims Andreas Zumach. For the record, on
18th of February last year, USA middleman Christopher Hill handed Serbian
delegation in Rambouillet a document that was different from then current
document used as a basis for negotiations. According to the new document,
NATO forces should have been allowed to position themselves on the whole
territory of FR Yugoslavia and to have unrestricted access to all airports,
sea ports, roads, etc., without any limitation. Serbian delegation was
asked to sign the document the same day, which it refused. And that point
was the key moment in negotiations, which failed after it.
It is certain that not only would the Serbian delegation, as it was,
decline to accept such procedure presented in the form of
ultimatum and the document which practically means handing over its
sovereignty to foreign troops, but the same would have done any other country.
Andreas Zumach claims that two American journalists which reported from
Rambouillet confirmed alleged statement of an American delegation member
who said "we have placed such an obstacle in negotiations with Serbs that
they would never be able to go over it". It was also published in American
magazine "The Nation".
Americans knew very well that it was doubtful whether Serbian delegation
would accept presence of NATO troops on Kosovo itself and were certain
that Serbia would never allow NATO presence on the whole of its territory.
It seems that the negotiations were meant to disable Serbian side to sign
the agreement. In such way, NATO got legitimization for its military action,
which was the real aim of Rambouillet, not just to punish Milosevic. "There
is no doubt that the basis of agreement lies in NATO's leading force" -
categorically stated Madeleine Albright on 21st February, in a CNN interview.
Also, general knowledge is that negotiators in Rambouillet used every
diplomatic option before decision to use military
force, which Andreas Zumach claims to be untrue. "One thing is very
clear for future record. If Germany and other western
government claim they have done everything they possibly could, they
are simply lying. It is not true". Zumach adds: " On 4th of
August 1998 (during election campaign) Gerhard Schroeder visited Washington.
There he met with president Clinton and Madeleine Albright. When they talked
about use of force in Kosovo conflict, Schroeder said he would prefer to
have a UN mandate for it. Albright countered, saying 'No, we cannot
use UN for this under any circumstances'. " During Rambouillet negotiations,
there was not even an attempt to talk about possibility of a UN mandate
for military presence on Kosovo, nor on the possibility of any UN military
troops to go there. Since the beginning, only one option has been open
- NATO, which, as we have already cited Albright, couldn't have been brought
into question.
Disregarding all problematic situation in Kosovo, where practically
nothing is functioning yet, which is blamed on inefficient UNMIK, NATO
is proclaimed the only true winner of this war thus becoming the only functioning
security element that has
to exist further. By NATO intervention in Kosovo, UN have been definitely
discredited as a factor which can stabilize crisis
locations with military force.
A question remains: why did the USA so eagerly want to exclude UN from
military mission in Kosovo, and favored NATO instead? Was protection of
human rights just an excuse for military intervention and were casualties
of Albanian refugees manipulated so that NATO could have started its military
mission in Kosovo?
Hard and immediate evidence for these doubts is building of a grandiose
military airport in south-eastern part of Kosovo, near
Sojevo village, 3-4 kilometers far from Urosevac. Airport is built
with exclusive USA troops, not NATO. Construction works at "Bondsteel camp",
as Americans call the airport, started immediately after the arrival of
NATO troops in Kosovo, mid-summer last year. There is no team of architect
geniuses that would be able to prepare plans for building so big military
airport and base in just a few days or months. Nor are there universal
plans for airport base which could be used in every geographic and climate
conditions. Plans for building this airport have existed earlier than when
discussions about the need for presence of foreign troops in Kosovo ever
started. According to our sources, plans for building bases on Kosovo were
finalized in 1989, when it was clear that the communist regimes were imploding
and Warsaw pact breaking apart. Investment worth hundreds of million US$
and over 750 acres of land occupied by American airport near Urosevac certainly
won't be used only as living quarters 5000 American soldiers in their control
sector in Kosovo.
Similarly, the kind of attacks against Yugoslav army and its infrastructure
as well as insisting on complete retreat of both
Yugoslav army and Serbian police from Kosovo are certainly connected
with disabling the Yugoslav army from maintaining its
presence on Kosovo and its possible endangerment of American and NATO
military bases. UN mandate and placement of UN troops on Kosovo without
military intervention would probably have meant further presence of YA
in Kosovo, as was stated in the first negotiations' paper. A very important
aim of NATO intervention was the building of the airport near Urosevac
and bases on Kosovo, that are linked to a more wider geo-strategical concept
and political interest than human rights of Albanian refugees. In such
light, genius manipulation in Rambouillet becomes somewhat clearer. Violence
and crimes committed by Milosevic's regime against Kosovar Albanians and
media pictures of exiled persons and human tragedies served as an excuse
and good motive to incline public opinion to accept military intervention
of NATO and don't question it at all. That NATO spin doctors succeeded
in their plan has been shown by the fact that NATO intervention was approved
by most social-democrat and leftist parties and groups in Europe. They
have been traditionally opposed to this military block.
According to all estimates, new Kosovo airport should replace airport
and base in Aviano, north Italy. The reason for change of location shouldn't
be looked for in financial obligations, taxes, complicated administration,
and other obligations towards the
country where a base is located, although there is a great advantage
in Kosovo since NATO can use its bases there for free,
has unlimited range of control and isn't responsible to any management
there. Building airport with subterranean installations, launching pads
etc. is far more important than can be deducted from the first sight, and
judging by characteristics of the base and other indicators, there is a
well-founded doubt that the base will even have nuclear arms.
The answer to the question - why Kosovo, not somewhere else - is found
in geographic and strategic characteristics of this
region. Bases in Kosovo are much easier to defend than other bases
in Turkey, Greece or Hungary. Bases in Turkey or Greece also mean a certain
security risk due to possible terrorist attacks coming from Iraq, Iran,
Lebanon or Palestine. Military airport and bases in Kosovo are easy to
defend, well-connected with all major communication routes and, compared
to others, the cheapest. In some dark scenarios estimates say that the
radiation range, if attacks on Russia would come from bases in Kosovo,
wouldn't reach most important European centers, and on the other hand,
Russia couldn't strike Kosovar bases since radiation would expand to its
territory. Also, Russia is surrounded by bases in Hungary, Turkey, soon
Romania and Bulgaria, and that bases could intercept its missiles. In NATO
slang, Russia and southeastern Europe are called "unfinished business".
Episode with intrusion of 200 Russian soldiers on Kosovo, when in the
night between 10th and 11th of June Russians occupied
Pristina airport and a possibility of direct military confrontation
between Russia and NATO which cost general Wesley Clark his position
arose, has shown that stakes are high. According to Russian newspapers
"Komersant", the aim of the action has been to capture subterranean airport
near Pristina. Russians have got their information from the Yugoslav government
too late,
newspapers claims, when it was already clear that NATO troops would
enter Kosovo. Russians immediately dispatched 200 soldiers stationed in
Bosnia in a wish to prevent NATO from getting control of the airport and
to probably secure their control sector in Kosovo. Russian army was ready
to send 2.500 paratroopers as support to the airport units, but neither
Bulgaria nor Romania allowed flyby of Russian airplanes loaded with paratroopers.
That was insisted by NATO officers in Brussels. Eventually, the whole
action failed, and if the airplanes with Russian paratroopers had flown
without permit, Bulgars or the NATO would probably have shot them down.
It is obvious that Kosovo has a very high geo-strategic importance
for NATO and that its troops will stay there for a very
long time. With bases in Bosnia and Kosovo, NATO now has complete
control over Balkans as the most unstable region in Europe, but also strategically
very important due to traffic connections with the Middle East. United
States Secretary of State Madeleine Albright stressed the importance of
Kosovo in Brooking Institution in April 1999: "This region is a major artery
between Europe and Asia and the Middle East. Its stability directly affects
the security of our Greek and Turkish allies to the south and our new allies
Hungary, Poland and the Czech Republic to the north". Explaining American
interest in this region on another occasion, Madame Albright said: "(To
understand why that is,) we need, as President Clinton has repeatedly argued,
to consult the map. Kosovo is a small part of the region with large historic
importance and a vital role to play in Europe`s future".
Control over Balkans means control over roads to Middle and then Far
East , which is a very important reason fop military
protection of the shortest, cheapest and most easily defended roads
leading from Europe into Asian east and vice versa. Whoever controls
this roads, including Morava-Vardar valley, controls general commerce and
oil pipelines on Europe-Asia route, and that is one more step towards Caspian
sea and rich oil platforms in that area. USA certainly want to maintain
that control before the EU. Control of territory in, for example, still
Montenegro or Bulgaria and Romania means connecting for the first time
over land all countries members of NATO and geographic sphere of interest
of Western Europe and Middle East. With the exception of Milosevic's Serbia
as an isolated island, NATO now has a complete military control over the
whole of Europe.
In any case, as a result of military intervention in Kosovo, USA definitely
and efficiently secured their military presence in
Europe, and NATO come out of it as main instrument of the US in proving
American leading role in Europe and world. Along the USA mostly profited
Germany, which for the first time since WWII, really got rid of the burden
of the past, stepped with its army outside its borders and proved that
it is a new great force, not only in an economical, but also political
and military sense.
At the end of Cold War, when Warsaw Pact was disbanded. NATO had to
prove its new strategy, "crisis management". Strategic political aim of
NATO was to prove its credibility at any cost. Exactly on its 50th anniversary,
came Kosovo - excellent chance for it, which basically didn't carry too
much a risk. Disbanding NATO would have endangered leading role that the
United States play in Europe, and every strengthening of UN as a truly
decisive military and political factor of security in the world would have
automatically included Russia and China into chain of command. The United
States would have lost their decisive role. Even in NATO, American troops
are under "ultimate command of American officers and president of the USA
and supreme military commander".
United States consider Europe a partner, but also a possible competition,
especially if we take into account strengthening of
EU (new member states, new mutual money, need for separate military
forces, etc.) With Kosovo intervention, USA proved to EU that NATO is the
only security institution that is functioning at the moment and that it
is necessary to keep it further. Nobody talks or mentions permanent military
UN forces . After debacles in Bosnia, UN and their role in military missions
are no longer a discussion subject for anyone.
However, before UN failed, it had been systematically obstructed, mostly
by USA, in the spheres of financing UN missions, its initiatives, staff
and equipment. USA are among major debtors towards UN and have been blocking
for a long time creation of permanent UN quick response troops meant to
act in crisis hotspots. USA are also blocking creation of UN department
for preventive diplomacy. Also, USA didn't sign the document about creation
of permanent international crime court, together with only 6 other countries,
while 102 states have already signed it. NATO officials have publicly proclaimed
that intervention of NATO forces doesn't need to be backed by UN mandate
and have thus completely discredited world organization that was created
after WWII to be a guarantee of world peace and stability. Public have
already completely accepted that the UN cannot grapple with crisis situations
and that NATO, led by USA what is always stressed by them, the only functioning
instrument of security in Europe and world. We can only try to discern
earnings of American military industry, since all NATO member countries
have to apply to standards set by USA with its sophisticated equipment
and technology, which other members have to buy from US.
***
Bosnia and Hercegovina: UPCOMING ELECTIONS - NEW
CHANCE FOR CHANGES
By Radenko Udovicic
On April 8th, local elections are to be held in Bosnia and Herzegovina.
Although authority of Bosnian municipalities are only minor and mostly
deal with local relationships and infrastructure issues, the importance
of the elections is huge. They will, in fact, reflect current political
situation in the country and indicate popular sentiment before general
elections which will be held in September. International community doesn't
try to hide the general elections will finally change power of national
parties in Bosnia and Hercegovina and make road for true democratization.
However, before it comes, estimates say that IC needs to "pave the way"
in numerous Bosnian towns where present authorities control everything
that happens. Many cases have shown that the biggest pressure on media
and other institutions is made on a local level, by ***** city mayors and
other local lords, far from international institutions. That disables creation
of a democratic atmosphere that is necessary for radical changes on
a national level.
Traditionally, many political parties will participate in the elections
- as much as 68, seven coalitions and 17 independent candidates. As all
previous elections, this one is also organized by OSCE, an organization
which used its authorization and disqualified two parties. Both belong
to extremely right option - they are Serbian patriotic party (SPAS)
and Serbian radical party (SRS). Many that disqualification, especially
of SRS; has been a risky move since SRS is an extremely popular party.
United in a coalition with Serbian democratic party (SDS), it enjoys government
in half territory of the Serb Republic (RS). The party was disqualified
after it had made many insulting statements towards international community
and rejected some Dayton accord provisions. However, SRS peacefully, which
is rather strange, accepted its disqualification, commenting that "Bosnia
and Herzegovina is occupied by international community and it is an honor
not to participate at quisling elections".On the other hand, SRS' coalition
partner SDS is participating in local elections and seems more ready than
ever before to cooperate with international community. Estimates say that
SRS voters will vote for SDS in order to prevent abstination of Serbian
voters and thus prevent Bosniaks from Serbian republic to achieve majority
in some municipalities. Although there have been no serious polls, analysts
think there should be no significant changes on a local level. However,
current clash within SLOGA Coalition with Socialist party on one, and Dodik's
socialdemocrats and Plavsic's SNS on the other side, could have a
negative impact strengthening SDS positions, which would make work hard
for prime minister Dodik. Also, strengthening of SDS would not be met with
approval among the representatives of international community who consider
that party nationalist, despite certain positive change of course towards
acceptance of Dayton accord.
On the other hand, power in almost all municipalities of Federation
B-H is divided between Bosniak SDA and Croatian HDZ. The only exceptions
are Tuzla, second largest Federation city where governs Socialdemocrat
party (SDP) and Velika Kladusa, led by monolithic Democratic national community
founded by Fikret Abdic, former Bosniak separatist. SDP enters these elections
with great expectations, encouraged by opposition victory in Croatia. That
the struggle between SDA and SDP will be fierce has been shown by beginning
of election campaign. SDA president and Bosniak member of tri-partite B-H
presidency, said in Sarajevo at the first election rally of his party,
that "SDA opened an era of reedom in this country". "We have destroyed
totalitarianism and introduced democracy" - stated Izetbegovic, saying
to opposition Socialdemocrat party that it exists only thanks to democracy
of SDA. As highest achievements of his party, Izetbegovic mentioned defense
of Bosnia against aggression, creation of Army B-H and Dayton peace. Izetbegovic
also added that SDA created an identity of Bosniak people which has not
existed during Tito's Yugoslavia. Statements made at SDA's first election
gathering stirred political response.
Socialdemocrat party reacted immediately, accusing Izetbegovic's speech
as a proof that SDA privatized the state and collected all national values.
In its leading commentary, opposition daily newspapers Oslobodjenje accused
"Young Moslems", once led by Izetbegovic, for collaboration with fascists
during WWII. "At the time of struggle for bare survival of Bosnia and Herzegovina
and Bosnian nation, Izetbegovic and his Young Moslems discussed pan-Islamic
ideas while thousands of Bosniaks bled and died in partisan resistance
movement" - wrote Oslobodjenje.
It is therefore clear that the struggle for power will also deal with
values from near, as well as distant past. Although SDP is partly multi-ethnic
party since it also has its supporters among some Serbs and Croats living
in parts of Bosnia with Bosniak majority, it is clear that this party will
chiefly fight over Bosniak votes and that is opposed only to Party of democratic
action (SDA). Serbs in the Serb Republic don't support multi-ethnic parties,
and similar is on territory where Croats have a majority.
Although SDP nominated its candidates in thirty municipalities in the
Serb Republic, current estimates say that the number of votes it will get
there is insignificant. A reason for it could be found in the fact that
some leaders and members of SDP support revision of Dayton Accord and have
never truly accepted Serbian republic. Such views are met with resistance
among population in RS, who are scared that Serbs would be minorized by
the loss of their entity.
Among Croats in Bosnia and Hercegovina, HDZ is still ranking best,
despite election defeat in Croatia. Croatian opposition
parties were completely defeated at the last elections, and current
analyses still show their support is not great. However,
domination of HDZ could be eliminated by faction led by JadrankoPrlic,
minister of external affairs of Bosnia and Herzegovina, and Neven Tomic,
vice-president of the Bosnian government. Although both issued formal denials
against rumors that they were about to leave HDZ, they want to make democratic
transition within the present party. However, sources close to the two
politicians claim that, if the transformation fails, Prlic and the so-called
liberal faction will start a new party. Such a possible division is too
late for the local elections, but many take it into account for general
elections in September.
In Federation B-H another possible relevant political power is Party
for B-H led by Bosnian former vice-premier Haris Siljadzic. This party
is still forming a coalition with SDA, although it decided to be alone
in some municipalities' elections. According to polls conducted by newspapers
Slobodna Bosna, popularity of the Party for B-H, especially its president
Silajdzic, is growing. It is interesting that Silajdzic is one of the fiercest
supporters of the revision of Dayton Accord, claiming that the document's
form presents obstacle to normal functioning of the state. Siljadzic even
suggested postponing local elections since, he said, elections will not
bring any changes, but will cement national division of Bosnia and Hercegovina.
However, the proposal wasn't backed by any political party, or the national
community.
Local elections are also important for integration of Bosnia and Hercegovina
into Europe. In mid-April, Council of Europe will be deciding whether to
accept B-H or not. Bosnia was given several conditions regarding democratization,
respect of human rights, adoption of tax and customs laws as well as adoption
of permanent Election law, which hasn't been done yet. However, Europeans
don't hide their support for present left opposition in Federation
B-H and ruling Coalition "Unity" (Sloga) in Serbian Republic, which they
want to strengthen. European Union have been sending signals that only
such political government in Bosnia and Herzegovina can make the country
enter Council of Europe. However, due to only partial fullfilment of all
conditions necessary to enter that institution, Bosnia can hardly enter
CE in April, even with the new authorities. However, it is clear that the
old don't want to fulfil set tasks.
***
The Czech Republic: THE GOLD PARACHUTE AND CZECH BANKS
By Petruska Sustrova
During the past week the media and the public in the Czech Republic
have been observing a scandal: Jan Kollert, Director of
Commercial Bank, one of the biggest finance institutions in the land,
was forced to resign his post after less than two years in office. This
alone would not have aroused the indignation of public opinion. People
are furious that under the terms of a contract, signed when he took up
his post, he is due to collect severance pay, called "the golden parachute"
- amounting to several million crowns. The exact sum has not been made
public: There is, however, talk of between fifteen and thirty million crowns,
in other words, approximately between half a million and one million dollars.
Politicians comment this, furious listeners phone to radio talk shows,
readers are writing letters to newspapers. The Prime Minister of
the Czech social democratic government made the following tactless remark:
"We shall simply refuse to give Mr. Kollert all that money, let him go
to court if he thinks he is entitled to it." However, soon one of
his advisers with a higher legal awareness, pointed to the clumsiness of
such a remark, so that the Prime Minister somewhat mitigated his statement.
Even commentators maintain that contracts must be honoured, and wonder
how such a contract could have been signed in the first place.
But why did such an extraordinary discussion even arise? And why did
politicians at the top echelon get involved? After all, politicians must
be aware that contracts of this kind are quite normal, that top managers
of major finance institutions are well paid and secure should they have
to leave their position. The main problem lies in the fact that in the
past Commercial Bank granted a large number of irretrievable credits. Now
the bank is at long last on the eve of its privatization but if the Czech
government is to find someone interested in this finance institution, the
latter would first have to put its house in order. The government already
agreed to rescue Commercial Bank financially so that it becomes fit for
marketing. The critical credits are to be transferred to Consolidation
Bank which the government (at the time a right-wing government under Vaclav
Klaus) set up precisely for this purpose. However, it soon became
evident that the sum, burdening Consolidation Bank after a transaction,
will reach possibly as much as sixty thousand million crowns. This is roughly
one-tenth of the state budget: in other words, Commercial bank was run
in a truly foolhardy manner.
It should be pointed out that the management of the bank was corrupt
not only when it was run by Jan Kollert but even long before; a number
of credits beyond retrieval date back to the early 1990s. It
must, furthermore, be recalled that Commercial Bank is not the only big
Czech bank with state assets, bedeviled by similar problems. The Czech
government recently privatized the Czech Savings Bank (or rather, completed
the privatization, that is to say, it sold off its package of shares to
the Austrian Erste Bank which decided to enter the Czech Savings Bank as
a new majority owner), where the majority of Czech citizens have their
deposits. The Czech Savings Bank, too, had to be rescued prior to its sale;
in this case, Consolidation Bank took over the burden of bad credits to
the tune of ten thousand million crowns. And it now transpires that this
financial injection was not sufficient to solve all the problems - the
new owner points out that almost 40% of all credits of the Czech ngs Bank
falls into the category of classified credits (credits where it is not
certain whether it will be possible to retrieve them from the debtor).
But the contract on the sale contains a formulation under which Erste Bank
will be able demand of the Czech state to take over once again these credits
- that is to say, Consolidation Bank.
A simple addition of all data published in the press tells us that
up till now the Czech state had to rescue the banks privatized only in
part (and under bad management) with the total sum of 300 thousand million
crowns - e.g. thirty thousand crowns per head of population, including
newborn babies. The average income in the Czech Republic is slightly above
12,000 crowns (approx. 350 dollars). A newspaper commentator had this to
say on the subject: this money would be sufficient to build 300,000 cheap
flats, in other words, a decent large town.
But let us come back to Jan Kollert, to his "golden parachute", and
to the question why even politicians are interested in it. If we remember
the state in which Czech banks find themselves, we shall no longer be surprised:
for example, why the major banks have not been privatized a long time ago,
so that today, ten years after the collapse of communism, the state would
not have to make up for their financial mismanagement. All three coalition
parties, making up Klaus's governments (1992-1997), had the privatization
of finance institution in their programmes, and they would now have to
explain why it in fact never took place. The social democrats, in
turn, would have to explain why they did their best to stifle every debate
on the privatization of banks with the participation of state assets, claiming
that "the Czech national silver was being sold off". (They maintained this
position almost to the day they formed the government in the summer of
1998). The Czech National Bank wou ve to explain why it supervised the
Czech banking sector so inadequately, although this is precisely what it
is supposed to do under the law. And the entire political summit, without
any exception, would have to explain why it did nothing to change the management
of the Czech National Bank which, when it came to supervision, failed to
carry out its duties under the law.It goes without saying that no one feels
like indulging in that kind of explanations: the parties do not want to
admit their mistakes, or a simply afraid of losing their voters. Under
those circumstances, it is far easier to claim to the public that the most
important problem is to spend a few millions on the "golden parachute"
for Mr. Jan Kollert and push all substantial issues to the background.