The Minister of Physical Planning, Construction and State Assets, Darko Horvat, said on Wednesday that the Uljanik and 3. Maj shipyards would get no more concessions for their mistakes, stressing that the next mistake they made would lead them into bankruptcy.

Responding to questions from the press during his visit to the northern city of Varazdin, Horvat said that after a financial inspection in 2017 the government had put an end to the poor management of the two shipyards, stopping the outflow of money from the state budget that was used for “building fictitious ships that were never delivered.”

Horvat said that the situation at 3. Maj in Rijeka was now completely different. “Today 3. Maj operates under the strict supervision of different control mechanisms, including the Supervisory Board which receives transparent monthly reports on the shipyard’s operations,” he said, adding that life was slowly returning to Pula’s Uljanik as well.

“These two economic operators won’t have an excuse for another mistake. The first mistake they make will lead them into bankruptcy,” the minister said.

Horvat said that the government had paid for “the sins of the past” without rescuing the two shipyards with grants. They have been granted loans and are required to pay them back, he stressed.