130 million is "hanging" due to (non)work

The Ministry of Finance has room to collect about 130 million euros, which is why there would most likely be no need for the state to borrow more this year, however, due to the (in)action of the authorities in the state system, this collection is difficult.

We are talking about money in the amount of 40 million euros, which companies in the majority ownership of the state should have already paid into the state budget, as well as 90 million euros from the economic citizenship project.

The problem arose because 13 state-owned companies did not comply with the Government's decision to transfer 30 percent of the profit from 2021 and 70 percent of the profit from 2022 to the state budget.

At the same time, decision-making on requests for submitted applications within the economic citizenship project, which is mostly the job of the Investment Agency and the Ministry of Internal Affairs, has been slowed down, with the Agency having all applications resolved, while the Ministry of Interior has not.

The Minister of Finance pointed out this problem yesterday Aleksanar Damjanović at the Government session. At the proposal of this department, the Government adopted the conclusion that state companies should be given until August 25th for the Shareholders' Assembly of these companies to make decisions on the payment of profits, about which the Ministry will inform the Government by September 1st, and if this is not respected, the procedure for replacing the board of directors in these companies should be initiated in accordance with the Law on Business Companies (Article 171).

In addition, the Agency for Investments and the Ministry of Interior are tasked to act as a priority on requests related to the decision defining obtaining a Montenegrin passport for investing in some of the development projects, as well as to report to the Government once a month, together with the Ministry of Economic Development, on the implementation of this decision.

"On these two bases, we have 130 million potential money until the end of the year and Montenegro has absolutely no need for a cent of debt until the end of this year. With the 100 million we have borrowed this year and this potential money, we are very close to sustainability without additional debt," said Damjanović.

Two companies complied with the conclusion

According to the Ministry of Finance, only 40 million euros or 3,9 percent of the 10 million euros were paid to the state account. That money was paid by the Montenegro Bonus (30,577 thousand) and the Montenegrin Elektroprenosni System (CGES), with the fact that CGES has paid the obligation from 2022 so far.

The companies, 12 of them, which indicated that they could not comply with the conclusion due to the accumulated losses from the previous period, and in accordance with the law on companies, are Aerodromi Crne Gore, Barska plovidba, Bisnismontenegro, Crnogorska plovidba, HTP "Miločer", Ulcinjska riviera, Luka Bar , Montekargo, Railway infrastructure, Railway transport, Zeta energy and Project-consulting.

The Science and Technology Park, Technopolis and the Center for Ecotoxicological Research pointed out the legal restrictions arising from other special laws, due to which they cannot comply with the conclusion.

"The companies that were obliged to act according to the conclusions of the Government and which are not subject to legal restrictions are the Montenegrin operator of the electricity market, Elektroprivreda (EPCG), Budva Riviera, National Parks, Morsko Dobro, Marina Bar, Post of Montenegro, Radio and Television of Montenegro, Regional Diving Center, Regional Water Supply, "Sveti Stefan" hotels and Space Protection of Montenegro", said Damjanović, who reminded that in the previous period, due to the crisis, the Government exempted state-owned companies from paying dividends, which was a big concession.

State Secretary in the Ministry of Capital Investment Admir Šahmanović said that it is about a large number of companies under the jurisdiction of this department, that he understands Damjanović's position that the money should be poured into the budget, but that he has a reservation because of the "linear approach" to the payment of profits because not every company can pay in order not to jeopardize business, while the Minister of Health Dragoslav Šcekić said that state-owned companies should not be allowed to behave like a "state within a state".

The agency processed all applications

According to data related to the economic citizenship program, which was closed last year, a total of 113 applications for the acquisition of a Montenegrin passport were submitted.

Damjanović clarified that as of July 17 of this year (analysis by the Investment Agency) there are 45 applications for replenishment at mediation agents, 114 at international suitability assessment agents, 10 at the Prime Minister's Office, 340 at the MUP, and 23 are waiting for the transfer of applicants' money from ESCOW accounts and 12 are being checked by an external auditor, which reduces possible financial effects, bearing in mind that a large amount of money is in ESCOW accounts (special accounts) intended for donations to less developed municipalities and for development innovation policies.

"A total of 90 million euros. I will remind you that the State Audit Institution ordered that the money that was in a special account be transferred as budget revenue, which was done. The money is transferred successively. Beyond this 90 million direct revenue for the budget, we have 156 million for projects in tourism and a little under a million euros for projects in agriculture, which would have indirect effects for the Montenegrin economy," said Damjanović.

He added that reprocessed applications are checked unnecessarily because they have all passed rigorous checks, that the slowness of processing leads to the withdrawal of applicants and it is necessary for everyone in this chain to make an effort to resolve the applications as quickly as possible.

State Secretary of the MUP Radovan Popovic said that they have 250 applications under processing and another 92 which will be processed are being delivered. He said that they are guided by the Government's decision regarding this project, and that all applications must be checked by ANB and Interpol, as well as checks by the Ministry of Justice and the Basic Court, which are under their jurisdiction.

The standstill drove away 10 applicants, resulting in reduced income

As of July 17 of this year, 43,5 million euros were paid for the costs of the procedure (fees), 53,3 million for the development of less developed municipalities in a separate account and another 41,8 million with the competent authority, for the purpose of donations for 37,4 million was paid into a special account for the development of innovation policy.

For the purposes of investing in one of the development projects, 156,15 million was paid to a special account (tourism and agriculture, while 120,21 million was paid to investors.

In the Analysis, it was indicated that 10 applicants failed due to the length of the processing process, as a result of which money was drained from special accounts for donations for less developed areas and the development of innovation policy and from accounts for investment in projects. It is a sum of 4,6 million euros.

"If significant steps are not taken to speed up the processing of the procedure, we can expect a progressive increase in the withdrawal of applicants and the withdrawal of money from special accounts.