The government of the Federation of Bosnia and Herzegovina (FBiH) – the largest shareholder in Bosnalijek, with 19.3 percent of shares – voted unanimously Wednesday to seek the removal of Edin Arslanagic from his post.
Concerns about two decades of Arslanagic’s management led to an 8 month long of investigation into the company’s financial dealings commissioned by the FBiH. Government authorities found what they say is evidence of financial irregularities in Bosnalijek such as damaging contracts and duplicate invoices.
“Our first conclusion was to call the supervisory board to organize an urgent session and decide to remove the whole management of the company,” said FBiH Prime Minister Nermin Niksic at the March 7 government session.
He stated that the losses sustained by Bosnalijek and its shareholders due to Arslanagic’s mismanagement cannot be precisely determined at this point.
“We are demanding that the financial police investigate the business of Bosnalijek, as well as some other related companies like Brstanica, Rhea and Royal Express,” Niksic added.
Government officials met with the supervisory board of Bosnalijek a month ago, asking board members to fire Arslanagic and other top company employees including his son.
The government will need the support of other shareholders. Niksic said that if the board does not remove Arslanagic, it would ask the other all shareholders to vote to remove the director.
In 2011, Bosnalijek’s revenue was US$73 million.
