Government of Republic of Srpska to cancel contract with "Delta-Zekstra"

Government of Republic of Srpska (RS) made the decision today (May 8, 2009) to cancel the contract with Belgrade-based consortium "Delta-Zekstra" on sale of department store "Boska" in Banja Luka.

The Minister of Trade and Tourism of RS, Predrag Gluhaković, said to the press that the Government had estimated that the buyer had not been fulfilling the obligations from the contract, and he announced that that contract would be cancelled “in the following period”.

He said that, according to the contract, consortium "Delta-Zekstra", and not the Government of RS, should have resolved the ownership-legal relations with the private owners of office space within the department store, but the consortium had failed to do so.

Gluhaković announced that the representatives of the Government of RS would have the meeting with the trade union of "Boska" in few days in order talk about situation in the company and further destiny of about 250 employees in that department store.

According to his words, introduction of bankruptcy proceeding in "Boska" would be the worst scenario.

The Government of RS signed the contract with “Delta-Zekstra” in October 2008 on sale of 58% of state-owned capital in department store “Boska” at the price of 3m EUR, but that money had not been paid even after two extensions of the deadline.