Rokšped sold the site of Hotel Galeb in Ulcinj to Sunny Palace for 6,850,000 euros, 16 years after buying it for 5,750,000 euros in 2006, according to Government documentation on privatization and the transfer of investment obligations. The resale price was 1,100,000 euros above the original purchase price, but the contracted investment was not made and no replacement building was constructed.
The 2006 purchase contract required Rokšped to invest a further 15,399,790 euros, in addition to the price paid for the hotel. The documentation records that this commitment, worth more than 15.3 million euros, remained unfulfilled.
Hotel Galeb was demolished in 2008, instead of being renovated and developed as a hotel complex. No new building was ever erected on the site, according to the records.
The privatization generated revenue from the sale of state property, but its expected investment and development effects were not achieved. The case raises questions about oversight of contractual commitments after state asset sales, safeguards for public interests and how the hotel could be demolished without the promised investment being carried out.
