{"id":2870,"date":"2013-06-06T09:24:43","date_gmt":"2013-06-06T08:24:43","guid":{"rendered":"http:\/\/www.mans.co.me\/en\/?p=2870"},"modified":"2013-06-10T09:30:40","modified_gmt":"2013-06-10T08:30:40","slug":"mans-disproves-of-legal-amendments-freeing-tycoons-from-utility-payments","status":"publish","type":"post","link":"https:\/\/mans.co.me\/en\/?p=2870","title":{"rendered":"MANS Disproves of Legal Amendments Freeing Tycoons from Utility Payments"},"content":{"rendered":"

\"\"(Podgorica, 6 June 2013)<\/strong> \u2013 The Government of Montenegro has submitted a draft Law on Amendments to the Law on Spatial Planning and Construction<\/em> to the parliament. The proposed law totally annuls the requirement to pay utilities on \u2018facilities of general interest\u2019 (whose definition is significantly broadened).<\/p>\n

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In light of the disrepair of communal infrastructure in nearly all Montenegrin municipalities, the government\u2019s decision to rid itself of an enormous source of revenues in order to secure the interests of so-called \u2018strategic investors\u2019 is incomprehensible. This, at the same time, means that the building of communal infrastructure will either be financed from the budget (at taxpayer expense) or through further indebtedness with local banks or international financial institutions (which will once again negatively impact citizens, as was done most recently with the \u2018KAP tax\u2019).<\/p>\n

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Particularly problematic is the fact that the government, through this proposed amendment, has broadened the list of facilities that should be considered \u2018facilities of general interest.\u2019 Included on this list now are facilities for the production of electrical energy from renewable resources, meaning that the future builders of hydroelectric power stations and wind-power stations won\u2019t be paying the state a cent for utilities. Some companies that are close to the Government and that are involved in these deals include Bemax, \u010celebi\u0107 and Zetagradnja. It isn\u2019t clear why the private facilities of these companies would have the status of \u2018facilities of general interest,\u2019 since the benefits will accrue only to their owners. MANS has previously noted that the producers of electrical energy are already subsidized through lower tax rates. This measure thus represents further concessions at the expense of the state budget (which will be paid for by citizens).<\/p>\n

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Additionally, in the existing version of the law, five star hotels are included under the category of \u2018facilities of general interest\u2019 that are exempt from paying utilities. The government has now decided to include four star hotels as well in this category, as well as smaller hotels, hotel resorts, boutique hotels, tourist settlements as well as wild beauty resorts, eco-lodges, and ethno-villages. This essentially frees a considerable portion of most buildings on the coast, as well as many in the north of the country, from having to pay for utilities.<\/p>\n

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This is particularly problematic in the north of the country, where the infrastructure that needs to be financed from utilities is either non-existent or poorly developed. Instead of financing the necessary infrastructure through utility receipts, the costs will be covered by further public indebtedness (which will be paid by all citizens).<\/p>\n

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In so far as such draft amendments are adopted, hotels of \u2018general interest\u2019 would include those owned by Naser Keljmendi in Ulcinj, the tourism complex owned by Vlatko Rakocevic (the controversial former ANB official), as well as the illegally built and retroactively legalized hotel Polar Star in Zabljak (partially owned by the family of former Prime Minister and the current Minister of Foreign Affairs, Igor Luksic).<\/p>\n

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The infamous Zavala development will also become a \u2018facility of general interest,\u2019 since it is still classified as a tourism settlement, even though we\u2019re essentially dealing with an ordinary housing colony.<\/p>\n

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The government\u2019s proposed amendment predicts that the change in planning documentation dealing with such \u2018facilities of general interest\u2019 will be carried out through an expedited procedure, opening up ample room for these objects be treated differently (of course, for the benefit of tycoons that have illegally built it).<\/p>\n

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In justifying such solutions, the government has cited its low rankings in the World Bank\u2019s Doing Business <\/em>reports when it comes to the issuing of building permits, including the intention to stimulate tourism development in the country\u2019s impoverished north. The text mentions as a potential example the area of Bjelasica and Komovi whose development they argue would be facilitated by freeing developers of the obligation to pay utilities. When we consider that the plan for this area was done by the RZUP company, owned by the Prime Minister\u2019s brother, Aco Djukanovic, who also owns substantial property in the area, and that other members of the family as well as close friends also own property in the area, it is no wonder that the government is now deciding to free such \u2018strategic investors\u2019 of the obligation to pay utilities.<\/p>\n

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At a time when citizens are facing increasing VAT charges, in order to fill gaps in the budget resulting from the unsustainable policy towards the KAP (including paying the debts of Russian tycoons), we believe that such a forsaking of revenues for the benefit of domestic and foreign tycoons is shameless, and that it will lead to the further indebtedness of citizens.<\/p>\n","protected":false},"excerpt":{"rendered":"

(Podgorica, 6 June 2013) \u2013 The Government of Montenegro has submitted a draft Law on Amendments to the Law on Spatial Planning and Construction to the parliament. The proposed law totally annuls the requirement to pay utilities on \u2018facilities of general interest\u2019 (whose definition is significantly broadened). In light of the disrepair of communal infrastructure<\/p>\n

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