Serbia's privatisation agency has cancelled its agreement with Bulgarian company Bulcvet on the sale of local cosmetics company Nevena, based in the southern town of Leskovac, Serbian news agency BETA said on October 27 2010.

The termination has been prompted by the buyer's failure to fulfill its social responsibilities stipulated in the contract, according to the factory's trade union.

The information was confirmed by Bulcvet's spokesman Miglena Yordanova.

"I do not know the reason for the termination of the contract, but we will surely appeal," she said.

According to BETA, Serbia's privatisation agency has so far terminated deals for 13 out 15 companies controlled by Bulcvet's owner, Bulgarian entrepreneur Hristo Kovachki.

Meanwhile, daily Glas Yavnosti wrote that the business had been given 15 consecutive deadlines before the contract’s cancellation.

"The suspension of this contract put an end to the agony of 257 workers, who hadn' t been paid in months", Nebojsa Petrovich, Nevena factory union leader, said.

Bulcvet owns 70 per cent in Nevena since 2007, while the remainder is held by minority stakeholders. The deal was estimated at 2.2 million euro.

Belgrade's decision comes several days after Kovachki’s coal-fired power plant Brikel was granted another deferral by the Economy Ministry.

Since the spring of 2010, the briquette factory has been violating European Union environmental requirements and had to be shut down. Kovachki said he would pay the fines and promised to upgrade the plant.





Source: Dnevnik.bg