MANS today filed to the Supreme Public Prosecutor’s Office a criminal complaint against Minister of Transportation Ivan Brajovic and Minister of Finance Radoje Zugic as responsible persons, on suspicion that they while signing contractual arrangements in relation to implementing the project of construction of section of the highway Bar-Boljare, on the unconstitutional way and with heavy abuse of the office power brought Montenegro in the subordinate position and dependent of the Republic of China.
In February this year Brajovic with representatives of Chinese companies “China Communications Construction Company” and its daughter company “China Road and Bridge Corporation” signed a contract on design and construction of the highway Bar-Boljare, sections Smokovac Uvac-Matesevo, while Zugic in late October with representatives of the Chinese EXIM Bank signed the contract on preferential loan.
By the complaint Brajovic is suspected of damaging actions while signing the contract on the design and construction of the highway on the basis of the preliminary and not the main project, which brings into a question the actual cost of investment, which was agreed in the amount of nearly 810 million Euros,
since only the main project can serve as a relevant documentary basis to accurately determine the real cost of the investment, while otherwise they run the risk that the actual cost of work in the end significantly exceeds the agreed price.
Despite that knowledge, there is a doubt that the Minister of Transportation consciously acted to the detriment of the economic interests of the state of Montenegro, and signed the contract on the design and construction with the Chinese partner, which is by the same contract exempt from paying a number of taxes, fees and charges. In this way the Chinese partner is favored and is given a series of financial benefits at the expense of the state budget that can be measured tens of millions of Euros, which the state state otherwise would be able to gain on the basis of the collection of taxes, contributions, customs and concessions.
Zugic is suspected of harmful behavior while signing the contract on preferential loan with the Chinese EXIM Bank. First of all, loan was made in US dollars, not Euros as official currency of Montenegro by which the state and its finances are exposed to a constant fluctuations of the dollar currency in relation to the Euro on the basis of return of the agreed loan. This may cause the return of the loan in a higher amount of contracted, close to 944 million dollars, especially when is taken into account the long repayment period of 168 months.
In addition, by the contract on preferential loan the state of Montenegro is brought in a subordinate position in relation to the state of China, which particularly confirms provision that the state, in the case if the contractual obligations are not fulfilled, guarantees payment by all of its assets, except diplomatic and consular offices and military equipment.
It was also agreed unfavorable clauses “pari passu”, which implies that all obligations of the state as a payment to any claims toward third parties will be equally ranked as the obligations on the basis of the loan contract, and in the case of a dispute arbitration jurisdiction is in China. Contractual conditions lead to the belief that the loan may be classified in the colonial contracts, which violates the sovereignty and international integrity of the state of Montenegro.
Brajovic and Zugic concluded unfavorable contractual arrangements beside the knowledge that the study of the British consulting company “URS” which is made in mid 2012 showed that the project on the highway construction in a full profile is economically inefficient in the manner and under conditions that is finally defined in the contract.
In fact, the study, requested by the European Investment Bank for the needs of the Ministry of Maritime Affairs and Transport, has showed for the Project
would be economically justified if the indicator of internal rate of return is greater than 8 percent, the net present value greater than 0 Euros, and the relationship
between the cost and benefits are greater than one. On the section Smokovac-Matesevo, an internal percentage of return is 4.5 percent, the net value of negative 158.6 million, and the ratio of costs and benefits 0.59 percent, which means that the section in terms of economic viability does not meet a single parameter, and
the study authors recommended the construction of much needed section Smokovac-Matesevo, but not as a full highway profile, but as semi highway project, and estimated that the implementation of that project would cost 698 million Euros.
The reported were made familiar with the analysis that the construction of the section: Smokovac-Matesevo is not economically viable, but they in spite of this knowledge, and violating the Constitution and legislation in Montenegro, undertook a series of harmful measures at the expense of the budget of Montenegro and signed a contractual arrangement, that the state of Montenegro leads into a subordinate position in relation to the state of China.
MANS expects that the Supreme State Prosecutor would, on the basis of submitted evidence, urgently investigate allegations from criminal charges and prosecute those responsible.
MANS
