PM: Agrokor is functioning normally, gov't is conducting consultations to appoint a new emergency administration

Prime Minister Andrej Plenkovic said on Wednesday that the process of emergency administration and talks on a settlement in the ailing Agrokor food conglomerate would continue, that the government was conducting consultations so that it could recommend the appointment of a new emergency administration to the Commercial Court, and that until then, Ante Ramljak would continue doing his job, as well as that there would be no government reshuffle.

"My main message to all employees, creditors and suppliers is that the process of emergency administration and the settlement process are continuing and that Agrokor is functioning normally together with all its companies. The government is conducting consultations so that it could make a recommendation to the Commercial Court to appoint a new emergency administration. In the meantime, Mr Ramljak will continue to do his job as he has until now and there will not be any suspension of the company's operations or emergency administration and there is no danger whatsoever of the entire process being destabilised," Plenkovic told a news conference after talks on Agrokor at the government headquarters that lasted all day on Wednesday.

The talks were prompted by public discussions about fees charged by Texo Management, Ramljak's former employer hired by Alix Partners as a subcontractor consultancy in the process of Agrokor restructuring, which amount to HRK 250,000 per week.

After this information came to light, Ramljak on Tuesday offered his resignation, for which Plenkovic said that it did not surprise him.

Plenkovic did not give a straightforward answer when asked if he would have replaced Ramljak had he not tendered his resignation, and he confirmed that now deputy emergency administrators could be appointed, something that was not done when Ramljak was appointed.

Appointment of deputy emergency administrator possible

"We did not do it last year, but the current situation may require additional forces," the PM said.

Speaking of what has been achieved over the past ten months, Plenkovic thanked Ramljak and all other experts involved in the Agrokor restructuring process.

Because of that and for the sake of stabilising the national economy, I want us to do our best in the coming period, in line with the Law on Emergency Administration in Systemic Companies, so that a settlement is reached, he said.

The PM also said that he did not ask Ramljak to withdraw his resignation and that they agreed that his resignation was the right thing to do.

Plenkovic said the new emergency administrator would be appointed "within a reasonable time."

"It will happen soon," he said.  

Dalic to continue doing her job, no government reshuffle

Asked about the status of Economy Minister Martina Dalic, Plenkovic said that she would continue doing her job.

"My relationship with the Deputy Prime Minister is very good and she will continue doing her job," he said. 

He dismissed the possibility of a government reshuffle.

"There will be no reshuffle. A government reshuffle can happen if I conclude that the ministers are not doing their job."

Reporters also wanted to know why he had waited for two weeks after being given documentation on the hiring of Texo Management, and Plenkovic said that that was not the only topic he had to deal with lately and that there was no need for urgency.

The PM also said that the government was conducting negotiations with Agrokor's temporary board of creditors and consultants, and when asked if Alix Partners would continue to provide consulting services in Agrokor's restructuring, he said that given that negotiations were well under way, he believed that there should be no other major changes in the structure of the stakeholders.

When asked why the Law on Emergency Administration in Systemic Companies did not contain provisions banning the emergency administrator from hiring someone he is connected with, Plenkovic said that there was a possibility that the law would be amended to improve it in the part concerning conflict of interest.

Asked about the hiring of Ramljak's former employer to provide consultancy in Agrokor's restructuring and the amount it was paid for those services, Plenkovic underlined that he had not been aware of the amount of consultants' fees until he saw the documentation in question.

Asked if there was any criminal activity involved and whether criminal reports would be filed, the PM said that in this case a private company had hired another private company and that he did not see how one could draw such a conclusion.
 
Responsibility rests with gov't and ruling majority 

Asked if the government controlled the Agrokor crisis, Plenkovic said that he made sure his decisions were in the best interests of the state.

"That refers to this situation as well... It's not my role to make problems more difficult, my role is to solve them.

"My actions must be well-thought-out and responsible, notably so as the entire (restructuring) process is being publicly questioned due to a situation that could have been avoided and should not have happened. That's why I'm being cautious," said Plenkovic. 

Eventually, responsibility will rest with the government and the ruling majority, he said.

"We aren't looking for any excuses. A major problem has occurred during the term of this government. I have been trying to solve it in the best way I can. A mistake was made and I reacted the way I should have reacted. I didn't react in such a way to escalate the crisis, quite the contrary, and I believe we will all learn something from this situation," said Plenkovic.

Text: Hina

News | Andrej Plenković