Podgorica (23 February 2011) – Today MANS submitted criminal charges against Daniel Brol to the Chief State Prosecutor on the basis of allegations that he gave false testimony on 10 February 2011 as a witness before the Basic Court in Podgorica in trial proceedings against Vanja Ćalović (a case that was initiated by *MNSS BV* from Amsterdam and the *Nikšić Steelworks AD*).
In his testimony, Brol stated that the *Nikšić Steelworks* had paid all its taxes and contributions on time in 2009.
Such a claim is false because Brol, as one of the directors of the *Nikšić Steelworks*, knows full well that by the end of 2009 the company owned over 10-million euros in taxes and contributions. The proof is to be found in the individual and consolidated financial statements for the company from 2009, documents that Brol himself has consistently cited (thus proving his familiarity with their contents).
During his testimony Brol claimed that he hadn’t spoken publicly about the content of the case that he was acting as a witness in.
Such claims are also false because he composed and sent out a press release following the press conference that is the basis of the criminal proceedings. Furthermore, Brol was a guest on the *TV Vijesti* program “Načisto” on 8 July 2010, when he again publicly discussed the contents of the case in which he is a witness.
In his testimony Brol also stated that *Nikšić Steelworks’ *subsidiaries were used for two or three transactions that were carried out during the banking liquidity crisis. He also stated that by establishing subsidiaries, the *Nikšić Steelworks* probably hadn’t reduced its costs nor had they been increased.
Again, such statements are false because Brol had on several previous occasions stated that the establishment of subsidiaries had resulted in savings. Additionally, he noted that he was one of the directors of the Steelworks who made the initial decision to establish a subsidiary in Amsterdam, which means he knew what the *Nikšić Steelworks* had to pay in administrative costs tied to the establishment of a company and that the *Nikšić
Steelworks* had to pay salaries in that company – even if they were only for its director. Furthermore, the legal representatives of *MNSS BV* in Amsterdam and of the *Nikšić Steelworks*, the lawyers Vanja Mugoša and Vlado Vuković, publicly stated that with the formation of the subsidiary company their costs were effectively reduced and that this was a reason for its establishment.
During Brol’s testimony he also mentioned that the consolidated financial statements of the *Nikšić Steelworks* included transactions between it and its subsidiaries.
This is also false since the consolidated financial statements of the *Nikšić Steelworks *don’t include data on transactions between it and its subsidiaries in Amsterdam, which is explicitly noted in the statements themselves.
Brol also claimed that it was because of MANS’ statements that the installation of new equipment in the *Nikšić Steelworks* had been delayed.
He has also blamed MANS for the fact that the company’s development isn’t at the expected level since the people that the company had been doing business with lost confidence in it. As a result the Steelworks has suffered a 6 or
7
week delay in its financial negotiations with creditors.
Again, such statements are false in their entirety, since it is generally known that the delays in installing equipment and the loss of confidence in the company were caused by the bad business practices of the Steelworks itself. Furthermore, Brol claimed during his testimony that the Government of Montenegro had guaranteed that credit and that there isn’t a single bank in the world that would approve a loan for the *Nikšić Steelworks*.
Therefore, Brol knows very well that the *Nikšić Steelworks *does not enjoy the confidence of banks because of its poor performance and not because of MANS’ statements. The falsehood of his statements is further confirmed by the undeniable fact that the Steelworks had its loan approved in May 2010.
In his testimony before the Basic Court, Brol stated that he wasn’t sure if the registration of a BV company in Holland is tied to specific tax obligations.
Once again the statements are false since Brol had previously stated that he is one of the Steelworks’ directors that had taken the decision to establish a subsidiary in Amsterdam. He must have been aware as to whether or not the registration of a BV company in Holland implies specific tax obligations, just as he knew that BV companies are limited liability companies and that the BV designation is largely used for the registration of offshore companies.
Therefore, Brol offered false testimony by bringing forth a series of untrue statements and denying a series of facts. Furthermore, all his false statements are exclusively linked to facts that might influence the eventual ruling in the court case in which he was testifying.
In fact he acted with direct intent, since he was aware that his statements were false and he deliberately attempted to mislead the court in establishing the facts relevant for a ruling in the case.
Considering that the question of the* Nikšić Steelworks’* business dealings is subject to the review of the State Prosecutor’s Office – given grounded allegations that criminal acts may have been carried out (which could not have been done without the active participation of Brol as a Steelworks
director) and that they relate to a foreign national with no ties to Montenegro – we’ve also requested that Brol be remanded in custody.
