Serbia to Reveal Smederevo Steel's New Boss

Prime Minister Aleksandar Vucic said Serbia's government would decide who won an important bid to manage a troubled steel mill on Tuesday.

"Privatisation advisors will deliver their decision, which will then be discussed by the Privatisation Agency commission. The government will then hold a session and deliver its decision, while the contract will be signed within three days," Vucic declared on Monday.

Serbia invited bids for a managerial contract for the Smederevo Steel Mill after failing to reach a strategic partnership deal with the US-based form Esmark on February 17.

On March 7, it was announced that six companies had applied to run the mill. The names were not divulged but Esmark confirmed that it had applied for this bid as well, after the privatization talks failed.

The company also said its former partner, Slovak businessman Peter Kamaras, was running for the same post as a competitor.

Esmark filed a lawsuit against Kamaras at the US court on March 4, claiming he had sabotaged the talks with Serbia's government on the privatization of the steel mill.

In the lawsuit, which BIRN has seen, Esmark seeks more than $100 million in damages, alleging that Kamaras convinced Serbian privatization officials to vote against the deal.

"Kamars knew his companies had been supplying ?elezara Smederevo Steelworks with sub-standard iron ore and other materials at above-market prices, and such pricing practices and deceit regarding the quality and content of the materials were not part of Esmark Europe's plan to revitalize the ?elezara Smederevo Steelworks," Esmark wrote in a press release.

BIRN failed to reach Kamaras for comment on the lawsuit and Esmark's claims.

Serbia's government has since said the dispute between...