File of MONTENEGRO AIRLINES – DOOMED FLIGHT brings forth a series of accounts which testify how the state-owned company was systematically destroyed while being funded form the state budget in order to artificially maintain the monopoly in the “Montenegrin skies”. The file reveals how politicization of the administration, absence of individual responsibility and attitudes towards company’s resources turned Montenegro Airlines into an expensive toy on the verge of collapse.
Daliborka Pejovic
The Special State Prosecutor’s Office (SDT) has been examining if there were abuses of business of the current management of Montenegro Airlines (MA). The SDT, headed by Milivoje Katnic, has confirmed this.
“Preliminary investigation into the events concerning taking official actions of the current management of Montenegro Airlines is in progress. The prosecution has been collecting the necessary information on the basis of which the decision will be made. In the interest of the preliminary investigation, no further details will be provided”.
At the same time, this was the reply Vijesti and MANS Investigation Center received to the questions regarding SDT’s launching preliminary investigation into the business of the current management of MA, the progress made in relation to the case, the period the investigation covers and the current investigation results.
According to the media, preliminary investigations into the business of the new management, chaired by Daliborka Pejovic, from June 2013 to September 2015, was launched since there was a suspicion that the company had suffered a multi-million loss due to the alleged unconscionable conduct.
When asked why the preliminary investigation against a former director and president of the board of directors, Zoran Djurisic, and the rest of the managerial staff was suspended, which had been launched on the basis of the 2013 audit report, the SDT responded that there was no ground for prosecution.
“The preliminary investigation into audit report on business performance of Montenegro Airlines for 2013 showed that there was no reasonable grounds for suspicion that any person had committed any offence to be prosecuted ex-officio. The procedure was suspended on 2 July 2015”, the SDT replied.
The current management, running MA since June 2013, has failed to respond to questions on their business performance and the suspended procedure against the former management. When asked about their expectations concerning the SDT’s preliminary investigation against the current management and their opinion on the fact that the investigation against them was suspended, they replied that they did not want to comment the prosecution’s work.
The preliminary investigation was opened after the new management submitted an audit report of the independent audit firm MV Consult to the prosecution, where, as they claimed, they had found irregularities related to losses and debts in the financial reports for previous years. The financial report was adopted by the shareholders’ assembly of the company and the government as the owner was familiarized with it. The Djurisic’s management team claimed that the company did ”business in accordance with law and international standards”. In May 2015, Djurisic was subject to a hearing in the prosecution in the capacity of a citizen, but it was not officially acknowledged why.
The next check of MA work was conducted following the old and new management of the national air carrier exchanged notifications on business of the loser company, burdened with debts of dozens of millions of euro, despite the state aid. At the close of 2014, the airline showed an uncovered debt of €40.5 million, whereas the current year’s loss stood at €9.5 million, thus reaching the sum of 50 million.
Djurisic was ousted in June 2013 through the government’s decision, after nearly 20 years of running the company. During a four-year investigation against the former MA management since 2006, alleged embezzlement were €44 million at first, then €11 million and then fell to a couple of thousands. The prosecution brought an indictment which was not supported by evidence, the Basic Court in Podgorica estimated. This was the first indictment this court sent back to the prosecution and ordered a more extensive investigation. Afterwards, the prosecution acknowledge that due to lack of evidence it would suspend the investigation against Djurisic and one of the then directors of MA sector, Vladimir Djelevic.
At that time, Djurisic, the husband of the DPS official Milica Pejanovic, filed charges against the prosecution and police for ”fixed affair”. The Police Directorate rejected the responsibility for tarnishing the company’s reputation and responded that MA was well aware of the reasons why the investigation was suspended by the competent court”. In 2010, he demanded from the government to find the responsible individuals within the police and prosecution that directly caused the damage worth €3.2 million.
When the investigation was in full swing, the shareholders’ assembly supported the company’s management in activities that were, as they put it, directed at conducting successful business policy”. The fact that Djurisic was appointed as the president of the board at the time of the investigation was explained by the claim that he had performed the company director’s role successfully.
Ivana Gudovic
Ines Mrdovic
Failed to check old investigation and completed procedure
The Supreme State Prosecutor’s Office (VDT) officially responded that the Special Prosecutor’s Office did not check the suspended investigation-the procedure in the old case against Djurisic and one of the then directors of MA sector, Vladimir Djelevic.
The VDT reminded that on 15 July 2009, the Basic Court in Podgorica indicted both, Z. Dj. and V. Dj. for the criminal offence of abuse of official position and against V. Dj. for the criminal offence of negligent performance of duty.
“Based on the complaint of the defense counsel against the indictment, the criminal panel of the Basic Court in Podgorica rejected the indictment requesting more supporting evidence. After the investigation was completed, the deputy prosecutor said that he was withdrawing from further criminal prosecution against the said persons, because there was no evidence that the accused committed designated offenses or any other criminal offense which is prosecuted ex officio. On this basis, on 2 July 2010, the investigative judge of the Basic Court in Podgorica issued a ruling on suspending the investigation”, pointed out VDT, led by Ivica Stankovic,.
By the request for investigation, Djurisic and Djelevic were charged with abuse of official position in the following areas: founding the company Master Airways, procurement without adhering to the Law on Public Procurement, writing off bad debts and write-off and selling of spare parts. The police filed a criminal complaint in June 2006, and Djurisic and Djelevic were charged, among other things, with concluding harmful agreements on lending aircraft with the daughter company Master Airways, which was rejected due to lack of evidence, as well as other charges.
In 2006, during the investigation into MA affairs, among others, the then members of the board of directors Ranko Krivokapic, Rifat Rastoder and Jusuf Kalmperovic, made statements to the investigative judge and repeated that they were not familiar with management members‘ harmful agreements. On that occasion, Krivokapic said that he did not attend the sessions at which the questionable decisions were adopted.
Pursuant to the Statute of MA from 2002, the board of directors is responsible, among other things, for making decisions on permanent business cooperation, collaboration with other business organizations, adopting investment decisions, setting up business units…
They claim that corruption was not present in the case of Cayman Islands
Investigative authorities were especially interested in the finance leasing of Embraer 195 with BNDES and in the agreement which was purchased by Cayman Islands-based company Montenegro Aviation Leasing Limited, whereas the former management, which had acquired it, claimed that no corrupt elements were present.
“There are no corrupt elements in the aircraft purchase, which was confirmed by the competent authorities”, claims the former management, headed by Zoran Djurisic.
The former management points out that the aircraft was purchased from the manufacturer, the company Embraer, for €32.9 million, on the basis of a twelve-year loan given by the Brazilian export bank BNDES and Brazilian national treasury. The overall price of the aircraft, including interest and guarantees requested by the Brazilian party, is $47.7 million.
They emphasize that MA received the loan from Brazil in 2010 ”at the time when this kind of loan arrangements were suspended due to a global financial crisis worldwide.”
