THE RISE AND FALL OF "NOVA MAKEDONIJA"

AIM Skopje, December 15, 1998

The largest press and publishing house in Macedonia is living through its hardest times. It is crumbling down under the burden of enormous losses and debts which, according to some sources, amount to as much as some DEM 30 million, while its privatization has de facto, and soon, most probably, de iure as well, turned to nothing. The circulation of its issues, as well as the number of their pages are reduced because of the shortage of news-print. During electoral campaign its editions practiced Goebbels' editorial policy in favour of the Social-Democratic Alliance of Macedonia and its coalition partners and satanized the opposition. Now that the opposition has won and is in power there is a growing opposition towards the management and Pande Kolemisevski, General Manager of "Nova Makedonija", who is expected to resign at the extraordinary Shareholders' Assembly scheduled for the last but one day of this calendar year.

According to the old proverb about rats leaving a sinking ship, information on a private firm which the first man of the firm and his closest associates have established with the intention of issuing their own paper, has already reached the public. For a long time it was considered, and there were no doubts in that respect, that the development of the press-publishing house "Nova Makedonija" went hand in hand with that of Macedonia's statehood. To make things even more ironic, such was the title of a monograph issued on the ocassion its 50th anniversary. Namely, "Nova Makedonija" was created at the end of the National Liberation War, in October 1944, in the village of Gorno Vranovce where the party and military leaderships of the partisan movement were stationed. Under the old regime, with the blessing of the party and the state, this house published practically every paper in Macedonia. It was also the only one which had a modern printing press and a monopolistic distribution network. Late eighties and early nineties, which marked the departure of the old regime, did not affect this empire. What is more, the entire huge edifice in the centre of Skopje, which was originally planned as a Press Centre, went to "Nova Makedonija", an institution which, under new social conditions, went hand in hand with (now new) the state.

Because of the stalemate which ensued after the first parliamentary elections in 1990, it seemed that the editions of "Nova Makedonija" (the only dailies "Vecer" (Evening) and "Nova Makedonija, and magazines: "Fljaka e vlazrimit" in the Albanian language, "Birlik" in the Turkish language, and the then started news-magazine "Plus" which came out only three times a week) reached their peak. Rid of influence and interference of old communists who had left the political stage, and without a new boss who would take over their role, editions of "Nova Makedonija" had a chance of carrying out their task professionally. However, it turned out that the new political era did not formally change many things. And journalists, especially those in the state-controlled media, such as "Nova Makedonija" and MRTV (the Macedonian Radio and Television) were, remembered their previous status of "socio-political activists" with sadness and tried to get it back as it made them equal to politicians with whom they could build the new system in all fields, just as they had built the old one. To put it simply, they would act as middlemen between those running the state and the broadest population strata which have to be directed and told what their wise leaders were doing, which was a temptation the Macedonian state journalists could not resist.

The emergence of numerous electronic media after the nineties, as well as bashful announcement of new papers, the establishment of a foundation for assisting the independent media, the launching of the first private rotary press, etc. did not shake the monopoly of the old state favourites who still lived off the budget. Moreover, from the inauguration of the Social-Democratic Alliance of Macedonia and its coalition partners as rulers, despite the emergence of two new dailies in the Macedonian and a third one in the Albanian language and several new influential weeklies, "Nova Makedonija" was still the sacrosanct master of the Macedonian printed media space and its frontmen so powerful and influential that they were feared even by the authorities.

These are the circumstances under which the dubious privatization of the printing and publishing house "Nova Makedonija" was carried out. The share of the state in the new shareholding company was assessed at some thirty percent. Formally, together with a package of shares obtained through a "privatization of the Ante Markovic type" (slightly over 20 percent), the employed undertook the obligation to pay for the shares from their own pockets over a six-year period after which they would gain the control. The state Privatization Agency and the competent government commission gave their approval and the house was formally transformed into a shareholding company. However, the troubles started after the last parliamentary elections. It was clear that after the change of power, someone within the house would have to take the consequences for the propaganda editorial policy pursued in favour of the SDSM and its partners at that time. Many thought that because of its Goebbels-like treatment of the then opposition, the new authorities would be vindictive. But, it turned out that they had no intention, at least as far as "Nova Makedonija" was concerned, of interfering in what was going on there. Admittedly, the often repeated statements of the new Prime Minister Ljupco Georgievski in that sense, came after the events which heralded the collapse of the great "Nova Makedonija" from within.

It turned out that the management of "Nova Makedonija" made several mistakes in the course of privatization process. One of the obligations of the workers of "Nova Makedonija" was to pay first four installments to the Privatization Agency within two years as of the beginning of the privatization process. Although in the last couple of years it had troubles with regular payment of already low wages, and despite the fact that it did not pay any contributions on such wages, the solution of the management consisted in the shareholding company itself, instead of its shareholders, paying for the shares. It meant that the house treated its employees by making them owners of shares for which they did not give a single denar. Naturally, this move was not to the detriment of shareholders, but...

Then came the elections, change of power and the competitive media discovered how the first two installments had been paid. In all this, the house management did not even think it fit to keep up the pretense and show the payment as funds relinquished by the employees for the purchase of shares, nor did it secure the approval of the workers for whose account such shares were bought. Both moves were in contravention of the Law on Privatization which prohibits the purchase of shares for the employees with the company's funds...Things got even more complicated when "Nova Makedonija" failed to secure funds for the next two installments, while as a result of electoral changes, the position of the management was also shaken. Quite unexpectedly, the employed expressed their distrust and refused to transfer their shareholding rights to the management, as well as give their approval for installments already paid to the Privatization Agency "post festum". First misunderstandings arose in the management which was unanimous until then: editor-in-chief of the daily "Vecer" with the highest circulation, was summarily relieved of duty when he announced the secession of this paper. Individual business sections and columns in "Nova Makedonija" also rose their voice against Pande Kolemisevski, the first man in the firm.

The firm's Supervisory Board brought a decision requiring the Management Board of "Nova Makedonija" to call an extraordinary Shareholders' Assembly. It did so by calling it for the very end of this year (December 30). Practically speaking, "Nova Makedonija" has not been privatized in accordance with the existing Law on Privatization. It is a question of days when that fact will be formally established and the house given back the status of a public enterprise. It is also evident that the house is breaking apart from within at all seams. It is now clear that "Nova Makedonija" is burdened with losses and debts ranging between DEM 13 (according to the management) and 27 (according to some media) million. There is practically no hope that someone from outside would come to its rescue with fresh money: many strong firms which used to give financial shots to "Nova Makedonija", and to which it owes astronomic figures, are no longer willing to give anything, all the more as "Nova Makedonija" no longer has a benevolent Government on its side to force them to do it, nor banks willing to extend credits to a firm riddled with debts and falling apart...

The new Government is sitting on the fence and refusing to interfere in the personnel policy of this house, but also making it clear that with its share of 30 percent it will try to take over the printing works and distribution network, which are now the only source of income for "Nova Makedonija". The announcement of the new Government that it will no longer finance printed media from the budget, but aim to create conditions in which papers will be able to survive on the market (lower printing costs, more favourable distribution, tax exemptions, etc.) will further harm this firm. It seems that all this heralds the last days of "Nova Makedonija" as we used to know it.

AIM Skopje

ISO RUSI