Local company linked to Serbian corporate scandal

A CYPRIOT company looks to have got itself in the controversies that have recently arisen in Serbia.

The discovery, uncovered in Alithia newspaper, states that a Cypriot company called ‘Demeno Trading’ had bought a pharmaceutical company called Jugoremedija just over two years ago, via a Macedonian company which it also owns called JAKA 80, something which had upset the hundreds of employees belonging to Jugoremedija who are still striking in protest over the decision.

More trouble is set to kick in after it was discovered that the sale of Jugoremedija to JAKA 80 was not conducted in accordance with Serbian trade legislation.

In a report issued by the Anti-Corruption Council on the situation of Jugoremedija it was noted that controversial purchase of Jugoremedija and how it was not conducted via the stock exchange.

“On September 10, 2002, the Privatisation Agency sold the shares of the pharmaceutical factory ‘Jugoremedija’ belonging to the state auction, a total of 41.93 per cent of the shares.

“The sale of 41.93 per cent of Jugoremedija shares is the only case known to us in which the Agency used its legal authority to sell the shares at the auction, dodging the stock exchange. The agency prepared the auction dossier, performed a bidding, and chose the most favourable bidder, a company called Jaka 80 in FYROM.”