The Association of Sea Captains of Montenegro (UPK) from Kotor expressed "deep concern and indignation" regarding the manner in which the ships "Kotor" and "Dvadesetprvi maj" owned by the company Crnogorska plovidba AD from Kotor (CP) were sold.
The UPK board of directors pointed out on the association's website this evening what they said were "a series of irregularities that point to the harmfulness and potential illegality" of the process of selling both ships of the company, which is 100 percent state-owned.
Last week, the government gave its approval at an electronic session for the sale of the ships CP "Kotor" and "Dvadestprvi maj" for a total of 13,2 million dollars.
The ships will be purchased by the Danish company K/S Navision Group. The purchase price for the ship "Kotor", built in 2012 in Shanghai, is set at $5.750.000, with a deposit of 39,12 percent in an escrow account and delivery of the ship to the port of Tyne (United Kingdom) no later than December 1, 2025. The purchase price for the ship "Dvadesetprvi maj", also built in 2012 in Shanghai, is set at $7.500.000, with a deposit of 30 percent and an obligation to deliver to the port of Paradip (India) by September 22, 2025, with the deadline for cancellation of the transaction being December 1, 2025.
The Sea Captains' Association emphasized that both ships were sold for a total of $13.250.000, "although their market value, according to reports from reputable brokerage houses, was at least $20.000.000."
"Also, in the Information sent by the Ministry of Maritime Affairs to the Government on this occasion, it was confirmed that the ships are worth at least 19.000.000 dollars. Specifically, it is stated that before the commencement of the procedure, a remote assessment of the value of the ships 'Kotor' and 'Dvadesetprvi maj' was carried out, which was based solely on insight into the available records and reports on the technical condition of the ships, without a physical visit and inspection on site. The assessments were allegedly made by international companies - Drewry Financial Research Services Ltd (UK) and Braemar Valuations Limited (UK) - which in July 2025 estimated the ship "Kotor" at the amount of 9.5 million dollars, and the aforementioned assessment results were used as a guideline when considering the value of the ship "Dvadesetprvi maj", which is the twin of the "Kotor". Therefore, by selling the ships for the amount of 13,25 million dollars, Crnogorska plovidba AD, but also the state as its largest creditor, were damaged by at least six million dollars", said the Management Board of UPK.
Therefore, they asked a number of questions to the authorities: whether the sale of the ships was contracted by direct negotiation or was it done through a broker; who was the broker in this deal and what was the commission; if the deal was contracted by direct negotiation, who were the names and surnames of the persons who contracted the sale.
"In this regard, are the allegations of the Turkish bidder EOS Group true that the communication was conducted by the State Secretary at the Ministry of Maritime Affairs? If so, based on what legal authorizations and which State Secretary," the Captains' Association asks, recalling the reaction of the Turkish company EOS Group, which, as it itself stated, was ready to buy both ships at a higher price, but CP suddenly gave up on concluding the deal for them, citing the alleged inability, due to annual holidays in the Montenegrin courts, to carry out the administrative procedure of placing a mortgage on the ship 'Kotor' in favor of EOS Group, in order to secure the down payment that the Turks would give it for the ships.
"Did the CP Board of Directors or the Ministry of Maritime Affairs hire a law firm with experience in the field of maritime law, which deals with representation in the purchase and sale of used ships? If so, which law firm is that and what are its references in the aforementioned field? Did the CP Shareholders' Assembly make a decision on the sale of ships, or high-value assets, in accordance with Article 13 of the Law on Business Companies," UPK asks, emphasizing that "the information published by the Turkish buyer EOS Group, which, according to its own statement, offered 16 million dollars for both ships, and was then eliminated from the procedure with the explanation that "the mortgage could not be registered due to vacations", is particularly worrying."
"Such an explanation is frivolous, unprofessional and indicates a possible deliberate avoidance of a better offer in favor of a second-ranked buyer who paid significantly less. The above is irresistibly reminiscent of the affair of the sale of the old AD Barska plovidba building," UPK points out.
They warned that Article 13, paragraph 1, item 8 of the Law on Business Companies stipulates that the Shareholders' Assembly shall make a decision on the disposal of the company's assets (purchase, sale, lease, exchange, acquisition or other disposal) whose value exceeds 20 percent of the company's book value (high-value assets), unless a lower participation is determined by the Statute.
"Therefore, it is easy to conclude that the Government did not have the legal right and authority to make a decision on the sale of the ships, but that the right was exclusively held by the Shareholders' Assembly by law. All of the above indicates that the ship sale contracts are not legal and that all competent authorities must be involved in this obviously illegal procedure in order to determine responsibility, who exceeded their powers and how the decisions were made by the Government, which does not have the legal right to sell the ships of the company Crnogorska plovidba. Therefore, we call on all competent authorities and other interested organizations to examine this harmful ship sale contract and to take legal measures. This primarily refers to the Special State Prosecutor's Office, but also to the control mechanisms of the Parliament of Montenegro," the sea captains stated, recalling that the state parliament has the possibility of "organizing a control hearing before the competent committees, in order to determine all the circumstances that led to the sale of the ships below market value, including the elimination of the competing offer from Turkey."
"The hearing would enable public clarification of the role of the Ministry of Maritime Affairs, the Board of Directors, possibly engaged brokers and legal advisors, and provide a basis for further institutional steps. Initiating a parliamentary investigation, as the highest form of oversight that the Parliament can implement, with the aim of thoroughly examining the legality of the procedure, determining responsibility for possible excess of authority, and proposing measures to protect public property and the maritime economy. Bearing in mind that this is a property of great value, the sale of which, according to the Law on Business Companies, is within the exclusive jurisdiction of the Assembly of Shareholders, there is a reasonable suspicion that there has been a violation of the law and abuse of authority," the UPK stated, calling on the Parliament of Montenegro to "react urgently, in accordance with its constitutional and legal competences, in order to prevent further harmful consequences and restore confidence in the management of public resources."
"Of course, we also call on the competent prosecutor's office to review the work of the Ministry of Maritime Affairs and the management structures of AD Crnogorska plovidba, as well as all persons who participated in this outrageous transaction. The Association of Sea Captains of Montenegro is at the disposal of all interested institutions and organizations, and is ready to submit reports from brokerage houses confirming that the ships were sold far below market value. After all, the Ministry of Maritime Affairs confirms in its information that the ships were sold far below market value," the UPK pointed out.
They emphasize that preserving the merchant fleet is a strategic interest of the state, and that "such actions must not be tolerated."
"This process of selling ships not only harms the company Crnogorska plovidba, but also undermines trust in the management of state assets," the captains said, adding that their Association "will continue to monitor this case and insist on transparency, legality and protection of the interests of the maritime economy in Montenegro."
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