The privatization of the “New tobacco conglomerate” is one of many that Council for Privatization and Capital Projects implemented completely non-transparently, because in secret negotiates with interested buyers “Montenegro Tobacco Commerce”, a company associated with controversial Tobacco factory in Mojkovac, which has been under investigation for several years on suspicion of smuggling illegal cigarettes.
Council for Privatization in December last year announced tender on which bidders could bid for the purchase of all shares of “New tobacco conglomerate”, which are worth about 7.6 million euros, and are owned by the Government and the City of Podgorica, or for recapitalization through the investment program. Qualification requirements were unacceptably low and tenderes were required to have five years of experience in the tobacco industry, or to have an annual income of 10 million euros in the last business year.
In February this year it was announced that “Montenegro tobacco commerce” from Mojkovac is the only bidder. This company has offered recapitalization of the “New tobacco conglomerate” through the investment program worth 8 million euros for the factory construction and production organization, of which 3.5 million would be invested in fixed assets, 1.2 million in working capital, and the rest in buildings.
Since the Council and this privatization considered a secret, negotiating conditions in terms of the management contract “New tobacco conglomerate” are not known, and in particular by which the company from Mojkovac guarantees the fulfillment of the proposed investment program of 8 million euros. In particular it is the separate question of the origin of the money that would be invested in Tobacco conglomerate , especially when you bear in mind that there is a suspicion that the cigarettes are illegally smuggled from the Tobacco factory in Mojkovac.
In fact, according to official data, the founder of “Montenegro Tobacco Commerce” is Zeljko Bulatovic, who is also CEO of the “Montenegro tobacco conglomerate”, which manages Tobacco factory in Mojkovac. Montenegrin State Prosecutor’s office had earlier processed whether in Mojkovac fake cigarette brands are made for smuggling, but has never officially stated how, and whether the investigation was completed.
On the other hand, it is not only controversial a potential buyer of the “New tobacco conglomerate”, but also it is very problematic and the decision of the Government to enter the privatization of the company, established in late 2011, when through non-cash share invested part of claims that had toward the former “Tobacco conglomerate”, while at the same time damaged minority shareholders leaving them with nothing.
In the “Tobacco conglomerate” originally was introduced bankruptcy and its exclusive location, near the Clinical Center of Montenegro, literally was given as a gift to the construction tycoon Blagota Radovic and his company “Zetagradnja”. Bankruptcy was introduced in May of 2010, and bankruptcy manager Veselin Raicevic sold to “Zetagradnja”, less than a month after, the land for 13.2 million that has about 43 thousand square meters with buildings in total of 20 thousand square meters.
MANS has previously announced that “Zetagradnja” sought to oblige by the contract the Government and Capital to adopt a planning document in accordance with the requirements of that company for future construction, while the purchase price should be paid in three parts – the first in the amount of five million, another 1.4 million, and the rest during the property handing in April 2012. As by that date the property was not handed over, in May of the same year, was signed an annex to the contract according to which “Tobacco conglomerate” for delay each month is required to pay to “Zetagradnja” penalties of 98 thousands euros, which will all be deducted from the third installment. Location until today has not been handed over.
Furthermore, when the Government established the “New tobacco conglomerate” from the property completely illegally excluded minority shareholders of the “Tobacco conglomerate”, while at the same time the capital city issued a planning document that enables to “Zetagradnja” the construction of about 146 thousand square meters of residential and commercial buildings, which means that the the market value of the complex is almost 100 million euros. Minority shareholders subsequently filed a lawsuit seeking annulment of the decision of the sale of the “Tobacco conglomerate” assets.
Divestiture of the “Tobacco conglomerate” and damage of minority shareholders represents one of the first-class examples of misuse and corruption in privatization, and by declaring a secret the latest privatization of the newly established company “New tobacco conglomerate” the Government obviously tries to finish the job which began several years ago with as little public attendance as possible.
We believe that this privatization should urgently suspend not only because of suspicions in buyer’s criminal actions, but also for a reason of a series of previously taken steps by the Government of Montenegro, which are to the detriment of workers and minority shareholders, actually the public interest in favor of domestic construction tycoon. We also urge the State prosecutor to pull out from the drawer the criminal complaint that MANS related to this case filled two years ago, and to determine the suspicion of the existence of elements of criminal responsibility.
MANS
