Motovelo to be nationalized

Motovelo will be given to Minsk City Executive Committee; the Republican Commission will be created.

Leanid Afimau, Head of State Control, said today after the visit to the plant, AFN reports.

According to him, a breach of agreement conditions is the reason for nationalization..

ATEC Holding controlled by Muraueu brothers and registered in Austria bought Motovelo at Br15.6 billions in 2007 promising to retain the trade mark, redeem enterprise's debts and invest about $20 millions in production.

"In its palmy days the plant could produce 1 million of bicycles and 200 000 of motorcycles. In the first quarter of 2015 there was produced only 10 000 of bicycles and few of motorcycles. Former owners dismantled and sold more than 2 thousand pieces of equipment, and only assembling left. Although the investor promised a release of 550 thousand products a year", - Anfimau stated.

According to him, the investor failed his obligations; he sold the equipment to a Lithuanian firm at the price of scrap-metal, as well as more than 1000 sq. m of plant's premises. The number of employees decreased 6 times, the company accumulated huge debts on credits and is almost on the verge of bankruptcy.