The agreement with the Government of the United Arab Emirates (UAE), which Prime Minister Milojko Spajić plans to sign at the end of the week, suspends a number of Montenegrin laws and opens the door wide to money laundering, the NGO Sector Affirmation Network (MANS) announced today.
The Government of Montenegro has established an intergovernmental agreement with the UAE, Prime Minister Milojko Spajić announced the day before yesterday.
"Agreement on cooperation in the field of tourism and real estate development "It provides that land for selected projects will be provided 'without the need for public procurement, public tender or other procedures prescribed by national legislation governing state property.' This means that state land will be sold or leased through direct agreements behind closed doors, which opens up enormous scope for corruption," the MANS statement said.
The NGO added that the document was adopted on Monday evening, at an electronic session of the Government, and that it is not yet available to the public.
"Previously, an Agreement between the Government of Montenegro and the Government of the United Arab Emirates on Economic Cooperation was adopted, which contains general provisions on cooperation and was published on the Government's website. However, the second Agreement, which MANS reached, contains highly controversial articles. With this document, the Government undertakes to adapt Montenegrin legislation to the needs of selected projects, i.e. the interests of their investors," MANS said.
They stated that in addition to tourist facilities, the projects could also include the construction of "mixed-use properties," or apartments for the market.
"This is confirmed by the provision of the Agreement that allows for financing projects by selling real estate on the market before they are built. The Agreement also provides for the possibility of 'third party' investments in selected projects, without specifying who these parties may be and without clear criteria for selecting investors, which may open up space for the uncontrolled entry of suspicious capital into the country," said MANS.
The NGO said that it is particularly important to emphasize that this agreement does not only apply to the Velika Plaza project, but that it opens the door to all investors proposed by the UAE Government.
"Namely, it stipulates that the Emirates Government designates the companies whose projects will be the subject of the Agreement, and that the Montenegrin Government provides written consent to this. However, the Agreement does not stipulate under what conditions the Montenegrin Government provides consent, and when it may withhold it, especially in relation to determining the beneficial owners of the companies and the origin of the capital," the MANS statement reads.
They say that the agreement is contradictory when it comes to guarantees for investors.
"One part stipulates that the UAE Government guarantees investors, while the other explicitly excludes the Emirates' liability in the event that the selected investors fail to fulfill their obligations or are involved in questionable or illegal activities. This is particularly significant when we consider that the UAE very rarely cooperates with international institutions and other countries when it comes to preventing money laundering, and that there are grounds for suspicion that a significant portion of illegally acquired money was transferred from Montenegro to the Emirates. Due to all of the above, there is a real danger that this agreement will enable the return and laundering of money acquired through criminal activities in Montenegro," said MANS.
The Montenegrin delegation to the UAE, according to the agreement, will consist of Spajić, as head of the delegation, Adis Pepić - Secretary General of the Ministry of Foreign Affairs, Majda Adžovic - State Secretary of the Ministry of Spatial Planning, Urbanism and State Property, Branko Krvavac - Head of the Cabinet of the Prime Minister, Milena Milović - Advisor to the Prime Minister for Economic Policy, Milica Perišić - Advisor to the Prime Minister for Foreign Affairs and Veliša Jovanovic - Advisor to the Prime Minister for Media.
The agreement was drawn up by the Ministry of Foreign Affairs, headed by Ervin Ibrahimović.
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