Podgorica, 25 November 2010 – Yesterday’s announcement by the Ministry of Economy that the Central European Aluminum Company (CEAC) must first consent to the publication of the Equalization Agreement again highlights the commitment by the Ministry headed by Branko Vujović to continue its longstanding practice of keeping Montenegro’s citizens in the dark about such agreements. The current equalization agreement would see the state assuming a large number of shares in the Podgorica Aluminum Combine (KAP), which is owned by CEAC.
It is already well known in Montenegro that Branko Vujović is the record-holder for violations of the Law on Free Access to Information, illustrated by the hundreds of Administrative Court judgments against such decisions (starting with his period as director of the Agency for Economic Restructuring and Foreign Investments until today). It is because of this that Montenegro’s citizens still haven’t seen the full privatization agreements and/or their annexes in the sale of the Montenegrin Electric Enterprise (EPCG), the Nikšić Steelworks, Jugopetrol and a number of other companies.
In this instance, Vujović’s ministry is justifying its secrecy through the senseless excuse that CEAC needs to consent to releasing these documents (in spite of the fact that the Administrative Court has already established a clear precedent stating that the entirety of such agreements cannot be declared secret, as this would be contrary to Montenegrin laws). Even though this legal precedent has been established – precisely because of Vujović’s continued propensity to keep the privatization agreements of the largest state companies and their annexes secret – it seems that such judgments are insufficient to ensure the transparent functioning of the Ministry of Economy.
Given that CEAC is unlikely to consent to the public release of the agreement, the Ministry of Economy has gained a useful excuse for hiding the document from the Montenegrin public, thus placing the interests of the Russian tycoon who owns KAP ahead of those of its citizens.
It is an established practice of Montenegrin institutions involved in the privatization process to prevent access to privatization agreements and
their annexes, often with the excuse that the permission of the new owners was not secured for the release of these documents.
In all the agreements already mentioned, an article that specifically prevents their release without the consent of all parties to the agreement is included. It is perhaps unnecessary to point out that none of the new owners of privatized firms have given their consent to the release of the agreement, which will certainly be the case with the current leveling agreement as well.
In light of the financial assistance that KAP has for years been receiving from the government of Montenegro, through various subsidies (including, finally, through the current Equalization Agreement), it is evident that the Ministry of Economy is obliged to release these documents so that Montenegro’s citizens can familiarize themselves with the millions of their euros that were granted to KAP and to what ends.
We’re calling on the Minister of Economy Branko Vujović to cease with his multiyear tendency to violate the Law on Free Access to Information and hiding the privatization agreements, and to immediately release the Equalization Agreement between the Government of Montenegro and CEAC (KAP’s owner).
Radovan Terzić
Legal Program Coordinator
