Monitor weekly, 11 March 2011
Djukanovic's Clan Property
The state donated in the most beautiful Montenegrin town of Kotor thousands of square meters, including - cultural monuments, to Aco Alexander Djukanovic, brother of the former prime minister1SIZ! On the magical location, in Dobrota, on the beachfront. It is rumoured that he will move there.
Djukanovic obtained in Dobrota, according to the Real Estate Agency data, approximately two thousand square meters of land by decisions of state authorities, and he bought as much. They ceded him a two-storeyed building of DPO and DSZ SIZ2 a monument of more than 290 square meters and three ancillary buildings - also cultural monuments. He, therefore, owns at this place, in cultural heritage monuments alone, a total 614 square meters! Why is state owned cultural heritage ceded to a private person? Maybe for Djukanovic's young revolutionary merits, in those years when he played music in rain at rallies of his brother's DPS3
Aco's nephew Edin Kolarević also indebted somehow the country. Son of Ana Kolarević, sister of the bi-decennial prime minister and president, has in Dobrota 11 797 square meters, which are registered on his firm Sublime developments. All this land, Kolarević obtained through a decision of state authorities. Its value reaches millions of euros. .
Decisions of state authorities did not do well to Djukanovic's clan only in Kotor. In Ulcinj, their's is the shore. At Port Milena, more than two and a half thousand square meters were ceded to the First Bank of Aco and Milo Djukanovic by decisions of state bodies. The land is under control of the Coastal Management Agency. It's not all. In this town, in the beachfront zone, Djukanovic's Bank owns 23 000 square meters, part of which are also under the control of the Coastal Management Agency.
As if the sky is their limit. Assets in Kotor and Ulcinj are only a fraction of an impressive list of real estate registered on the closest relatives of the sacrosanct leader. According to available documents, of all family members, Aco Djukanovic has the most in Montenegro.
He started from scratch. According to his own words, Aco earned his first cash by carrying bags at the Titograd railway station in the late eighties, near the building where he lived with his parents, brother and sister in a modest flat in gray urban neighborhood. And then, he says, he began to think
The transition from physical to intellectual work coincided with the conquest of power by his brother Milo. Accidentally. Unemployed, Aco earned his first generous fees as a producer - jury member of the Montenegrin state television in 1991, at the last joint appearance for the European Song Conquest, before the death of Yugoslavia. The winner was Baby Doll, who sang Brazil. Djukanovic was recommended to the jury, perhaps, by the sound and other technical details for which he was responsible at pre-election rallies of his brother's party, which had almost plebiscitary support of the people and Slobodan Milosevic.
TRANSACTIONS AND ACTIONS: After Baby Doll, Aco had a ball. As the older brother would say – he managed. According to the U.S. ICIJ, the wealth of the younger Djukanovic is estimated at 167 million dollars. It is not, however, clear on the basis of which methodology the Institute came to that figure. According to the data available to Monitor, his property in Montenegro alone, according to the Cadaster records and data from the Central Depository Agency (CDA) - is enormous and exceeds by far such estimate. How much and what Djukanovic owns outside our country is difficult to determine
Most often mentioned is the Djukanovic's ownership of the First Bank, in which he owns 46.48 percent of shares where, together with his brother Milo and sister Ana Kolarević, he has the majority stake and control.
The shares in the Nikšić Bank, which he later renamed the First Bank of Montenegro founded in 1901, Djukanovic bought for next to nothing. He was the only buyer who appeared at the auction through his Montenova company, that previously owned 12 percent of the bank's ownership. The 30 percent of shares, which the state was selling for 3 millions euros, he paid million and a half in cash and the remainder in frozen foreign currency savings bonds.
Within a year, the bank has simply flourished and became the second largest in Montenegro. American ICIJ underlines that the year before privatization, the government deposits in the bank totalled only 23 million dollars, and in September 2007, after privatization, 127 million dollars.
In the 11 months of operations in 2007, First Bank achieved a fantastic 390 percent growth rate. A lesser part of this should be credited to the business art of younger Djukanovic, while a much greater to the cosmic conflict of interest, about which the U.S. officials reported in the messages obtained by daily Vijesti through Wikileaks and the Europeans in the recently adopted Resolution of the European Parliament.
Large public enterprises and ministries of Milo Djukanovic's government transferred their accounts to the First Bank In just two years, the shares have risen over hundred times. Aco's capital in the bank grew in September 2008 to over 100 million euros. With the growth of capital and deposits, also rose the credit activities.
The problem in this, however, is that Djukanovic approved a large number of loans to friends and party loyalists, with poor or no collateral, so that the Bank quickly got in trouble. Aco, for example, approved credits worth several dozen million euros to Stanko
Subotic Cane, a business friend of Milo Djukanovic, who is suspected of smuggling cigarettes. Vuk Rajkovic, a business partner of former Prime Minister, got a five million euros credit. Among the friends who withdrew loans from the Bank are Goran Sito Rakocevic, the best man of former prime minister and member of the first board of the First Bank, and Radmila Vojvodic, a close friend of Milo Djukanovic, also a member of the first Bank's board. Aco, himself, borrowed from the Bank.
To save the First Bank from disaster, the government helped with a 44 million euros loan, which was returned in a strange way, through suspicious transactions in which one million traveled eleven times from the Pension Fund to the State Treasury in just one hour.
The government was not the only one to help in the crisis. At rescue also came the public companies. All transactions for the sale of electricity utility EPCG shares to the Italian A2A went through the fraternal bank. Out of approximately the 400 million euros transaction paid through the First Bank accounts, some 50-100 million euros remained in the bank on the basis of which it maintains liquidity.
COAL MINE, EPCG, INSTITUTE: Aco Djukanovic and A2A are together in the Coal mine. He has 10.5 percent of shares, A2A 39.49 percent, and the state 31 percent. Aco Djukanovic has over 75 percent of the Institute for Urban Planning and Design, whose spacious building is located on one of the nicest and most expensive locations in Podgorica, near the U.S. embassy. Djukanovic obtained the ownership of the Institute and its valuable real estate for only 2.7 million euros. Here again, he could pay part of the price by means frozen foreign currency savings bonds.
At the moment when Aco overtook the Institute in 2007, this institution operated well and had a positive balance sheet. Otherwise, the Department has a long tradition; it was established in 1946 and was the most prestigious national institution in the field of spatial planning, design and engineering. Why was it privatized and what did the institution gain since?
When Aco Djukanovic assumed control over the Institute, the same has received more lucrative business from Milo Djukanovic's government. A number of projects worth millions piled up, such as the one on the construction of a submarine cable under the Adriatic Sea, which the former prime minister agreed in direct negotiation with Silvio Berlusconi. Conflicts of interest did not stop here, they just multiplied.
REAL ESTATE: NGO MANS accused the Djukanovic's for having a conflict of interest in the spatial planning for Bjelasica and Komovi, undertaken by the Institute. The only problem is not that the state commissioned the work, but that Aco has over 275 000 square meters of land in this area, while his nephew Edin has more than 45 000 square
meters. A close family friend, Dragan Bećirović, has 147 000 square meters. Bećirović is the owner of the company Beppler and Jacobson, suspected to belong partly to Djukanovic's. Vektra, a company of Dragan Brkovic, also close to Djukanovic's, has 38 000 square meters.
In Herceg Novi, Aco's Invest nova (whose capital according to data from the Business Register is estimated at close to 12 million euros) owns seven parcels of about five thousands square meters. In Bar, the same company has two building lots on the prestigious Topolica location of about five thousands square meters.
In Podgorica, the younger Djukanovic has thousands and thousands of square meters in land, residential and business premises. In the heart of the city, at the stadium of the Soccer team Buducnost, he has several thousand square meters of office space which, interestingly, according to the cadastral data, is owned by the Government of Montenegro. Does this mean that Djukanovic was a rentier to the government of his brother?
Monitor wrote earlier, and this was not denied, that the Government of Montenegro gave Aco the right to use 7637 square meters of state land in Podgorica where the police building is located, including the right to become the owner.
In the Brace Zlaticanina Street, in the city's downtown, Aco Djukanovic purchased a two storeyed building which belonged to Montenegrin PTT, now under mortgage for restitution. Media reported that the new owner got a square meter in this prestigious location for much less than the market price.
In the Vuk Karadzic Street, also in the city's downtown, Djukanovic has over 1,300 square meters of business and residential space. In this building is the seat of his First Bank. The building was built in the Karadjordje's park, which the building usurpated.
Djukanovic also has a stake in the residential / commercial building complex Krusevac. There, he has rented the office space to the electricity utility EPCG. Our rentier does not have to worry – he acquires easily the tenants, state institutions and public enterprises, which are safe payers. Rentier capitalism.
BIG BROTHER AND SISTER: Sister Ana in Podgorica, according to the Real Estate Agency, owns four apartments and two commercial units, totalling 623 square meters. Unlike her brother Aco, whose properties are not encumbered by mortgage loans, Kolarević's property is under mortgage due to large loans.
Kolarević, a former judge, now has a successful law firm at a prestigious address in St. Peter Cetinjski Boulevard, in the center of Podgorica. The law office Kolarević has been proclaimed several times to be the best in Montenegro by some western institutes. Whatever she takes, she gets done. She boasted herself to have a monopoly – she
registers more than 80 percent of foreign companies in Montenegro, to many of which her brother Milo made possible to get a job.
Although British sources claim that he is among the 20 world's richest rulers, Milo Djukanovic officially owns much less than his brother. A flat of about 200 square meters in Podgorica is registered on his name. His university (University Donja Gorica - UDG) extends over some impressive 12 000 square meters of land, received as a gift in Donja Gorica, while the building has more than 14 000 square meters. In UDG, Djukanovic has one quarter of the property. The property is under mortgage, since Djukanovic and partners raised multimillion credits for the construction of the university from two Montenegrin banks - CKB and Montenegro Bank. According to Monitor sources, Milo Djukanovic has problems in repayment of this credit.
This is not the only credit of the multiple Montenegrin prime minister. For the 20 000 square meters of land in Budva, purchased through company Global Montenegro together with his partner and best man Vuk Rajkovic, he borrowed five million euros from Hypo Alpe Adria Bank. Milo Djukanovic, according to our information, also has a problem with the servicing of this loan.
According to former prime minister's property file, his wife Lydia does not own real estate property. His son Blažo got as a gift from his uncle office space of 459 square meters in Podgorica, and has a flat of 124 square meters in Zabljak.
It is known that autocrats hold at home only a fraction of their assets. When they step out from power, one usually finds outside wealth that is often measured in billions, in real estate, secret bank accounts, offshore companies of mysterious ownership structure, shares of foreign companies .... Just the businesses for which Milo Djukanovic was a suspect in Italy brought, according to various estimates, billions of dollars. Where did that money end up? It is suspected that the Montenegrin prime minister had a stake in some major privatizations, KAP4
How much possess abroad the heroes of our times? At this point, we only know that Ana's son, Edin, as a student, bought an apartment in Manhattan for $ 900 000. He also sacrificed himself for democracy - by donating $ 250 to Barak Obama during the campaign. Just a bit for Djukanovic's, a lot for America. , for example, but there is no evidence for it.
1 Milo Djukanovic, Montenegrin former prime minister and president 1991 - 2010
2 Local public institutions
3 Democratic Party of Socialists – DPS, Montenegrin ruling party
4 Aluminium Industry Podgorica, the largest industrial company in Montenegro