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From the Serbian Press | Serbianna.com For the world politicians, that have been quelling "local emotions" during their mandates, Serbia has become a fruitful ground for business.

Instigate, reconcile then make money

Origianl: Glas Javnosti
May 14, 2004

BELGRADE - Engaging politically pays by the multiple. If anything, during that period one makes professional and personal contacts that can be monetized once the official function ends. If this thesis needs any proof, then it is with the world politicians that have been tailoring the fate of ex-Yugoslav states but now are in the area installing themselves as businessmen.


Bodo HombachBodo Hombach is owner of a chain of east European newspapers, including 2 in Serbia

Madeline AlbrightMadeline Albright is the chief advisor to the Kosovo Internet provider IpkoNet

William MontgomeryWilliam Montgomery, retired US Ambassador to Serbia, has been rumored to take up a consulting position at Philip Morris tobacco subsidiary in Nis, Serbia. He denied the rumors.

Douglas HeardDouglas Heard brokered the sale of Serbia's Telecom

George SorosGeorge Soros financed political opposition in Serbia and the cable system and may do the same in Kosovo. Buying a mine may be a reward for him

Bernard KouchnerBernard Kouchner brokered a deal with Alkatel granting them an exclusive mobile telephone license in Kosovo.

James LyonsJames Lyons has been accused by Forbes Magazine to run a parallel business while a chief rep for the International Crisis Group funded by Soros

Richard HolbrookeRichard Holbrooke is not directly involved in the Balkans but is busy advocating independence for Kosovo and selling influence that may be rewarded if John Kerry wins the presidential election in the US.

The news that Madeline Albright has entered the mobile telephone business in Kosovo is not surprising at all. Her consulting firm the Albright Group has been selected to provide business advice to the president of the Board at the Kosovo's Internet provider IpkoNet that plans to make a mobile telephone offering in the province.

The world is saturated with advisors but the Balkan market is only at the dawn of development so exploiting contacts is a boom. Apparently, with friends among the Albanian leadership including Hasim Taci Albright also entered this game.

Ex-UK Foreign Policy Minister, Douglas Heard also could not resist the telecommunications sweet-deals so he brokered the sale of Telecom Serbia to the Italian group.

Coordinator for the Stability Pact, Bodo Hombach who was also the executive director of a German media house VAZ, created a mixed partnership with the Belgrade based Politika after the expiration of his term as the Stability Pact chief. Rumor has it that he began the partnership negotiations back in 2001, during his mandate, and his investments in Serbian media are attributed to his close friendship with the assassinated Serbian Premier Zoran Djindjic.

VAZ did not buy Politika because of high investment risk. Politika was in bankruptcy proceedings so the salvation was found with a mixed partnership where each party owns half. Politika brought its brand to the partnership that is valued at 25 million German Marks and includes its daily and about 15 original magazines. VAZ was supposed to bring in that much value also yet, even if the money was infused it is unclear what it was used for. There was talk of raising wages but they have not been substantially raised. Some new computers were bought, few offices have been remodeled and supplies have been paid off that have been ordered previously.

VAZ has a presence in 8 countries in the Eastern and central Europe and owns 28 dailies and among these are Montenegro's Vijesti and Serbia's Dnevnik.

George Soros has never taken part in the American establishment, but through his Soros Foundation that has been financing opposition parties in the previously socialist countries of the Eastern Europe, he helped install western-oriented politicians in the transition countries.

Soros is a businessman so he does not hide his willingness to pour money in a risky terrain such as Kosovo. Soros has already invested into the Cable system in Serbia so speculations abound that he wants to do the same in Kosovo. Often mentioned is his interest in buying the Trepcha Mines that is still under government ownership.

Soros has allegedly spent $50 million on lobby efforts to buy the mine. Domestic finance specialist value the Trepcha Mines at $10 billion because of its huge reserves of coal, zinc, lead and other metals. Foreign observers value the mine at $5 billion.

Maybe it is a coincidence, says Nenad Vasic, an analysis from Kosovo, but it is Bernard Kouchner, a Frenchman and second civil commander of Kosovo, that brought the French Alkatel to Kosovo with a monopoly-type grant from the PTT Kosovo to run mobile telephone system Valja 900. Two years ago, Alkatel had 300,000 subscribers with about $200 million in revenues.

Director of the Center for Free Markets, Miroslav Prokopijevic says that it is a "Standard procedure that functionaries in the western countries do a job and after it get a reward with opportunities and money".

"While they are serving their political function, they cannot do any business, but later come at the back door. The rules in the West are strict and it prohibits mixing politics and business, so business is done after their mandate. Officially, there is no conflict of interest here, especially if the business gets hatched in banana republics" says Prokopijevic.

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