Nepotism and clientelism in Montenegro
Last month’s attack of Miomir and Miljan Mugoša on the photographer and Deputy Editor-in-Chief of Vijesti daily, Boris Pejovic and Mihail Jovovic has another unusual dimension. Podgorica is one of the rare places in Europe whose residents can experience to be attacked with fists and firearms: Member of Parliament, Mayor, member of the highest echelons of the ruling party, a diplomat, the President of the Assembly of a bank and the head of the greatest football club. And all this is embodied in two persons who are also nearest blood relatives – father and son.
The fact that family relations in holding important public offices are not only the characteristics of Podgorica, or the Mugosa family, is shown by a similar case from the Montenegrin coast. In Budva, the official “metropolis of Montenegrin tourism”, and the unofficial Mediterranean capital of illegal construction, all strings of urban construction are pulled by the family of Svetozar Marovic, Vice President of the Democratic Party of Socialists, and more recently, Vice President of the Government. His brother Dragan Marovic is appointed as Municipal Secretary for Investment. He has jurisdiction over demarcation of urban construction plots, survey of constructed facilities, conclusion of contracts with investors regarding utilities, their billing and payment. “Obtaining a Decision on location and a building permit is a procedure that can take from 473 days to 734 days. If you can see any blame in that, then one of the main culprits for this is me, because many projects were initiated without a building permit.
I ignored the calls from the Ministry to stop construction… If you find pleasure in asking for resignation based on those errors, step out and say so. I will not mind at all,” said Dragan Marovic on one occasion and kept – his position.
ANA KOLAREVIĆ: Yes, I am very powerful and influential!
UNDER THE MAGNIFYING GLASS: Did family ties help you in your business arrangements, given your family status?
KOLAREVIC: I don’t know what you mean by “family status”. If it is viewed from the aspect of me being the eldest child of my father, who has spent almost his whole professional service in the judiciary, then it certainly did help me. It is wonderful when you arrive here as a novice, with your desires, ideals, ambitions and wherever you happen to be in the judiciary, you hear – this is the daughter of the honorable, honest and reputable judge Radovan Djukanovic. This is an excellent starting point, but also a responsibility, to follow in his footsteps and not let him down. I tried to be like that from the first day and I continue to do so to this day. You know, I’m still the eldest of his three children. I’ve beaten my path and gained a name for myself a long time ago. I do not know if I‘m supposed to satisfy the public by working somewhere as a cleaning lady, which is also an honorable profession, in order to avoid the stories of family status and family ties. No, I cannot give up on my family, on the contrary, I am proud of it, but in my work, my progress, I’m sure, the decisive factor was my professionalism, my knowledge and expertise.
UNDER THE MAGNIFYING GLASS: How do you comment the statements that your engagement and influence is the most evident example of nepotism and clientelism in Montenegro?
KOLAREVIĆ: Starting from the definition of nepotism and clientelism, I believe that I do not belong to either on any ground. Certainly, as someone who has devoted his entire life to “the rule of law,” I support the adoption of the Law on Prevention of Nepotism, and the abolition of a discretion right in employment and definition of clear criteria for employment.
I have never been politically engaged, and I have never had that kind of political or functional power. If I had been in need of functional power at least, I wouldn’t have voluntarily given up the office of a judge with the Supreme Court at the peak of my career, and ”placed my knowledge on the market.” The fact that this knowledge and experience were recognized by some people, which is constantly, even “maliciously”, ignored in my case – is not my problem, but of those who behave that way. If they cannot face up to the fact that I perform my job quite professionally, honestly and that I am renowned for it, although not in Montenegro and by its politicians and ”editors of social relations”, yet it is their problem, not mine. All those who claim – nepotism, clientelism, brothers, family – let them continue, and I’ll do as I’ve always done. Exactly as I was assessed on the basis of those criteria that led them when they gave me the New Economy Award for the best business attorney of 2009 and classified me among the best, most competent, and reputable citizens of the world.
And I’d say to all this: Yes, I am very powerful and influential!
Dragan’s aunt, Mirjana Marovic is Head of the Regional Unit for Real Estate in Budva. Her jurisdiction includes registration of rights over buildings and land, cadastral survey and issuance of real estate certificates.
Perhaps it is a coincidence, but this series should be supplemented with the fact that, in moments of rest between two state offices, Svetozar Marovic has also tried out his entrepreneurial skill by participating, as co-owner of the Moninvest Company, in the construction of the tourist and residential complex Zavala, whose construction was initiated completely illegally, without any permission. His brother and aunt did not create any obstacles to that business, and the judiciary has still not made any declarations regarding criminal charges brought against Marovic brothers and other participants in illegal construction filed by MANS NGO as early as April 2008.
According to Vujaklija dictionary, nepotism is “a term that indicates the behavior of individuals, mostly holders of political, economic, military or other power and influence who, because of their privileged position, provide benefits and other advantages to members of their families, relatives or people close to them as opposed to other people.” Are the listed examples proofs that nepotism is an integral part of our everyday life? The Human Resources Management is one of the addresses where we should seek the answer to that question.
The problem, however, is that Svetlana Vukovic, Director of Administration, has an ill reputation in the public to have been appointed to that position owing to the power and influence of her husband, Miodrag Vukovic, long-time official of the ruling DPS.
“Your question stresses in a very suggestive way the possibility of the existence of nepotism, especially in my case,” said Svetlana Vukovic for www.podlupom.com. “In this way, I am brought in an unenviable position of defending myself and my work from very superficial accusations that completely ignore the achieved results of the Human Resources Administration… I think that the best way to respond to your question as to whether “there can be any reference to nepotism in my case” is to highlight the results achieved so far by the Administration which I am Head of, which have so far been the only and best recommendation for my appointment,” says Vukovic, adding that “her appointment was the fruit of a clear procedure that can be verified very easily”.
Nepotism and clientelism, however, do not necessarily imply violation of procedures since, according to technical literature, “they do not necessarily have to involve illegal dimensions, but they are verging on the illegal. If we add to this the fact that Montenegro is “a society in transition”, which is the favourite excuse of the local officials when talking about such phenomena and the accompanying corruption, with the famous mantra of “limited human resources”, which apparently stem from the fact that we are dealing with a country with less than 700,000 inhabitants, we reach the merry-go-round of Montenegrin human resources based on protection and loyalty because of kinship, friendship and party connections.
On such a seesaw it is possible for the Secretary General of the Montenegrin Parliament, Milan Radovic, after submitting his resignation, to earn his subsistence as Director of the Institute for Serving Prison Sentences and Sanctions (ZIKS). His predecessor Bozidar Vuksanovic, at the same time, was transferred from ZIKS to the position of Director of the Customs Administration. He will take along, as announced, the majority of his closest associates from the Spuž Prison.
Dragan Djurovic is building his career according to the same recipe. Former representative of DPS, then director of the state Publishing Company Pobjeda, and subsequently Deputy Prime Minister and Minister of Interior Affairs, he was recently appointed to the position of Director of the Agency for Civil Aviation Control. The most responsible person for this appointment, according to the media, is the President of the Agency Council Željko Šturanović, former prime minister, current Vice President of DPS and the Parliament, and – marriage witness to Dragan Djurovic.
There are indications, jurists would say, that family ties have also played a significant, if not decisive, role in Sturanovic’s career. At a time when Milo Djukanovic decided to temporarily retire as Head of the Government, he and Svetozar Marovic as the two most powerful men in the ruling party long sought mutually acceptable solutions regarding Djukanovic’s successor. Rumour has it that the decisive factor was that Sturanovic, just like the current Prime Minister, originates from Niksic, whereas Marovic’s aunt mentioned at the beginning of this text – is his mother-in-law. The rest is history…
How these human resource combinations seem in the eyes of international officials, we have clearly learnt from Thomas Schmidt, the former Ambassador of FR Germany to Montenegro. Departing from Podgorica, Smith stated that Montenegrin society works on sponsorship and friendship ties. “Acting as witness (sponsor) at somebody’s baptism or wedding and nurturing ties is still deeply rooted in the Montenegrin society, but for the European Union such a system is not relevant and must be changed.”
Although they are reluctant to admit it, Montenegrin officials are also aware of this. The Ministry of Finance is drafting a law on integrity in the public sector which should, as it was announced, put an end nepotism and clientelism in state services. The fact that, sooner or later, this law will be passed is guaranteed by constant demands from the European Commission, which has imposed this obligation on state institutions, as part of the Action Plan to Curb Corruption and Organized Crime.
The content of the law and its implementation is a different story. The Law should be drafted by the Ministry run by Deputy Prime Minister Igor Luksic. At the same time, his wife works at the Ministry of Tourism. An important contribution to the preparation and adoption of this Law, by definition, is expected from Zarko Sturanovic, Secretary of the Government (who was appointed to that position while the Government was led by his paternal first cousin Zeljko) and his wife Radmila, Assistant Secretary of the Secretariat for Legislation with the Government of Montenegro. That is, if they are not distracted by other duties, as the Secretary of the Government also acts as President of the Board of Directors of the Public Institution The Official Gazette (with the fee of Euros 700 per month), member of the Commission for Decorations and Honours (Euros 250 per month) and a member of the Privatization Council (Euros 550 per month), while his wife, the second person in hierarchy of the Secretariat for Legislation, earns her fees on the Board of Directors of the Clinical Center and as member of the State Election Commission.
The harmonization of the proposed law with EU norms will be the charge of Gordana Djurovic, Minister for European Integration. She will not be affected by the fact that during her term of office with the Government, her husband Saleta Djurovic was elected President of the Council of the Agency for Electronic Communications (Euros 3,330 per month) and member of the Board of Directors of the state-owned Montenegro Airlines where he monthly earns little less than Euros 1.500…
Finally, it is expected that everything should be confirmed and verified by the Prime Minister Djukanovic. In this affair, great assistance may come from the newly appointed Chief Economic Advisor Petar Ivanovic, who is also Director or the Agency for Foreign Investment Promotion. And what recommended Ivanovic for the prestigious title of Chief Economic Advisor?
Economic analysts remember him as the author of a statement at the beginning of 2008, whereby he tried to belittle the warnings of the World Bank and IMF experts, that our economy is threatened by “overheating” and free fall: “Some tell us about overheated economy, and every lady who can cook knows that something cannot be overheated if you previously do not put a lid on it. We all know that our economy is open, which is to say that no overheating can occur.” Time has shown who was right.
Nevertheless, Djukanovic and Ivanovic are long-time associates, not only through operation of the mentioned Agency, where the first one acts as the Head of the Board, and the latter is appointed as Director. Those with better memory recall that Ivanovic was Vice Chairman of the Hypo Alpe Adria Bank at a time when Global Montenegro Company, whose owners are Vuk Rajkovic and Milo Djukanovic, was granted a loan of Euro 5 million without a pledge, and with a multi-year grace period. The loan, as the Prime Minister explained later, was covered by a mortgage on the lot of land that was partly purchased from obtained funds. The explanation, however, arrived after Ivanovic was dismissed from his position with the Hypo Bank.
Their cooperation lasts to this day – Petar is the President of the Board of Monte Adria Broker Dealers which, after the Government and the Italian company A2A signed an agreement on privatization and recapitalization of EPCG, won the exclusive right to mediate in trading operations between the Italians and small shareholders of the Power Supply Company, with the commission whose amount they themselves determined. All money gained from this transaction will go through the account of the Prva banka CG (First Bank of Montenegro), where brothers Aco and Milo Djukanovic are majority owners. At the same time, Prva banka has 49 percent of shares of Monte Adria.
Apart from their economic advisor, Prime Minister Djukanovic and his Government can rely on professional help from Prime Minister’s sister Ana Kolarevic in drafting the Law on Integrity in the Public Sector. Despite many controversies that accompany her work in Montenegro, Kolarevic, won “The Best Business Attorney of 2009” Award from the British journal The New Economy earlier this summer. The paper argues that the award is a recognition of the fact that the winner represents 80 percent of foreign companies and individuals doing business in Montenegro, and advises potential investors that “Ana Kolarevic is your guide to making Montenegro work for your business.” The British journal does not specify how much of the success of its laureate is affected by the fact that her brother is the Prime Minister.
But the list of her (major) client looks like a copy of company lists that have cooperated or still cooperate with the Government of Montenegro. It includes Jugopetrol, Telecom, Steelworks, Hypo Bank and Monte Adria Broker, etc. Is this the key evidence for a thesis that nepotism and clientelism rule Montenegro, or just another in a series of coincidences that may confuse those unacquainted with the circumstances?
