And you thought Obama's temporarily managing GM was bad! Just imagine living in a "free," "capitalist" country where raiders can come in and literally steal your business and all its assets away from you by force!
Raiders even tried several times to seize the entire Port of Odesa (Ukraine's largest port) from its owners -- Ukraine's largest raid attempt ever.
Although Ukraine's attorney general is giving local police credit for stopping the raid, according to locals, what saved the Tavria cognac factory was hundreds of workers and town residents, who got the alert and rushed out to oppose the thugs hired and bused in. The town's economy is almost entirely dependent on this one factory.
It seems that one of the factory's clients, Logos corporation, owed 40 million hrivna (about $5 million) that he couldn't repay. Instead of trying to work out a payment plan, he hired thugs, bused them to the factory, and tried to seize it by force. Accompanying the raiders was the factory's "new" director, with forged documents in hand. Reportedly, Logos planned to seize all the wine and cognac in storage, and have the new director write off the $5 million debt.
Unfortunately, such raids, albeit on a smaller scale, are still too common in Ukraine, even though the "Wild East" of the 1990s is less wild today. Businesses without a krisha, or "roof," (protection from the mafia, government agency, or a private security company), are vulnerable to raiders. Often corrupt judges and bureaucrats are involved, who help create forged documents of sale or ownership, and/or adjudicate them genuine in court.
Chances are nothing will happen to Logos; only the thugs will be punished, because Logos probably has political connections. In this presidential election season, it is sad that none of the candidates are promising measures to prevent similar raids. Why? Because to some extent, all of the candidates are associated with, or funded by, businessmen who have benefitted from illegal raids.
This all goes to show that capitalism and "free markets" without security and the rule of law are an invitation to oligarchy and criminal rule. We in civilized countries too often take the importance of our laws, police, and independent courts for granted, especially when we're preaching reforms to others.
We too often advise, "Just privatize, liberalize, and lower public expenditures on pensions and education, and everything will be fine."
Skirmish and 39 injured men at cognac factory
September 4, 2009 | MIGnews.com.ua
Yesterday in the evening, on September 3 a skirmish occurred at the cognac factory Tavria in Novaya Kakhovna, Kherson Region. As a result, some people were injured, reported first deputy director general of the factory Ludmyla Nadtochy.
"150 people went by three buses. They damaged the gates and went to the territory. People dressed in black, in camouflage, in helmets, with knee-pads, handcuffs tried to seize the factory. Shooting, tear gas, injured men", she said. According to her, now these people are in the territory of the factory. "They are not militiamen and officials of the Security Service of Ukraine. They did not show their documents. By our accounts, they are gangsters from Crimea", she added.
According to an eyewitness, the new management of the company tried to go to the factory accompanied by the guards on the basis of the court decision which came into effect. According to him, after they crossed the control post, people in the territory of the factory began to shoot with a hunting rifle, most likely, with fowling pieces. As of 10:00 p.m. injured men were taken from the factory by the ambulance cars.
In turn, press secretary at the Ministry of Internal Affairs Inna Kysil claimed that the Minister of Internal Affairs Yuri Lutsenko is supervising the situation at the cognac factory. According to her, militia of Novaya Kakhovna blocked 150 people who rushed in the territory of cognac factory and began shooting.
As of 11:00 p.m. 50 militiamen were guarding those who went to the territory of the factory, protecting them from workers of the enterprises, Ukrainskaya Pravda cites the eyewitness with reference to Interfax-Ukraine as saying.
According to the Minister of Internal Affairs Yuri Lutsenko, militia detained 169 people unknown out of 180 who tried to get into the territory of cognac factory Tavria. Then on the request of the factory authorities 1,000 workers of the enterprise arrived to the site of occurrence. As a result of the skirmish 39 people were taken to hospital. The prosecutor's office opened a criminal case on the attempt to seize the enterprise, Ukrayinski Novyny reports.
02:01 p.m. According to Yuri Lutsenko, 116 apprehended people have been identified. "They do not belong to any guard companies. They are unemployed. They were employed at the price of US $50-100", he said.
According to him, an attempt to seize Tavria factory is "the largest raid attack since the times of attacks on ports in Odessa. It was a well-organized raid attack. We are trying to identify the organizer. The apprehended are saying that they were employed by people unknown".
03:51 p.m. Novaya Kakhovka mayor Volodymyr Kovalenko claimed that the attempt to seize the factory related to the assumption of new director's office.
According to him, people who attacked the factory reported that they have the court decision about the new director. However, they did not show them and acted without officials of the state executive service.
05:47 p.m. One of the biggest producers of cognac production in Ukraine Tavria is charging the First national wine-making holding (it joins Logos corporation) with an attempt to seize the company, is reported by Tavria press service.
The attempt to seize the factory involving 180 guards was organized by shareholder of the enterprise, president of Logos corporation Valery Shamotiy. "Thanks to the well coordinated work of guards at the enterprise and militia the storm of Tavria failed", the company reports.
The guards, officials of the Minister of Internal Affairs and 800 workers of the factory managed to surround people who had attacked the factory and forced them out.
Currently investigators of prosecutor's office and Security Service of Ukraine are working at the site of occurrence.
"Having owed Tavria more than 40 mn of hryvnas for production, shareholders tried to seize the factory. Having begun with misinformation in mass media, they came up to blood shedding and skirmishes," press service notes.
Tavria authorities are pricing the damage in the amount of UAH 1 mn. "All windows and doors are broken in the administrative office. Some offices are destroyed including computers and office equipment… Trying to avoid the bankruptcy, Shamotiy and the First national wine-making holding are ready to do everything to return control over the enterprise to resell it later", Ukrayinski Novyny cites Tavria as saying.
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