Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2013
Bankruptcy and public-support controversy
KAP's bankruptcy after reported liabilities of approximately €383 million prompted criticism of the privatization, state-backed financing, electricity arrangements and the cost of preserving the plant because of its importance to employment and exports.
2006
Dispute over the accuracy of privatization accounts
After the 2005 privatization, CEAC said that an accounting review had identified undisclosed debts and obligations and inaccuracies in representations concerning working capital and other assets. The claims became a major source of conflict between the investor and the Montenegrin state.
Environmental criticism over red-mud residue
The plant has been criticized for pollution in the Zeta Plain. In particular, its red-mud pond was reported to release dry red dust that could be carried by wind into nearby villages.
Dispute over electricity consumption and preferential pricing
KAP faced criticism for consuming a substantial share of Montenegro's electricity and for receiving power at reduced rates while citizens faced higher prices and reported shortages.
Political criticism of the sale and shareholder treatment
Political opponents argued that KAP was sold below its value and raised allegations concerning the owners' reporting and business practices, including claims that annual losses were used to avoid dividend payments to minority shareholders.