Ivo Čović Announces Reorganization of Zagreb Holding

The President of the Management Board of Zagreb Holding, Ivo Čović, announced today at a Christmas gathering with journalists a major reorganization of the Holding by the summer of 2009.

He expressed satisfaction that for the first time in the three years of the Holding’s existence, they have established an organization of corporate functions, as its absence has caused difficulties in operations, confusion, and even in communication with the media. "Things are improving with the aim that the Holding operates transparently, without any negative phenomena or scandals," said Čović. He added that the newly established systematization will create space for the placement of new or existing people in new positions. He stated that the indebtedness of the city or the Holding is as much as is reflected in the books, and whether it is large or small is a relative question. "It is neither small nor alarming, but it is not a cause for panic, nor is it dramatic," said Čović. He emphasized that from those funds, five schools and kindergartens and emergency medical institutions have been built so far. "We know that we should not incur new debts and that we should not exaggerate in this regard, as the existing indebtedness is serious enough," he asserted.

He emphasized that he agrees with critics who claim that too little has been done in the organization of the Holding, that the existing organization is not good, and that changes are necessary. He pointed out that the synergy that the members of the Holding could have created through a common form of organization has been lacking, while synergy has been achieved in the financial markets, which allowed the Holding to issue bonds under very favorable conditions two years ago, enabling the realization of a number of significant projects. He highlighted the construction of a residential-business complex in Sopnica, significant investments in the reconstruction and construction of a new water supply network, drainage network, and gas network. What has been done in public transport is unprecedented – the procurement of 140 trams in two years and 214 new buses, which is more than half of the fleet.  (H)