Koprivica: Hiding the actual sale price of shares in the Možura wind farm caused direct tax damage to Montenegro

Hiding the actual sale price of the stake in the Možura wind farm caused direct tax damage to Montenegro, announced the Deputy Prime Minister for the Political System, Judiciary and Anti-Corruption, Momo Koprivica.

According to him, given that the Inquiry Committee discussed the state's tax revenues from the Možura project, instead of manipulation, citizens need to know the truth and facts.

"First, the phantom company "Spic Ronghe International Montenegro Limited" from Podgorica, which pumped 40 million euros into Možura wind park, from which it repaid loans for the purchase of turbines, generators and other equipment for the wind farm, avoided paying as much as 7.183.634,25 euros in VAT in 2018, while operating precisely in the Možura project. Its tax liability was determined, appeals were legally rejected, and the aforementioned tax liability was never paid, the account was blocked, and the company has no assets even though it had an incredible 40 million euros in one transaction. The only transaction that this company carried out was precisely the one in the Možura project and in connection with which it avoided paying the aforementioned amount of VAT. A classic fraud and enormous damage to the state, which defenders of the corruption of the former government do not mention when they talk about the "effects" of the Možura project," said Koprivica.

He added that citizens should ask themselves how many public goods could have been financed with such a sum of money.

That company, as Koprivica stated, still ranks 3rd on the Black List of Tax Debtors, and the total unpaid debt to the state with interest has grown to 12,8 million euros.

"The facts about the damage caused to the state best testify to the quality and success of that project, but also to the intentions and preferences of those who defend it. Secondly, since the "performance" of the Možura wind park company and its tax payment are being defended, citizens should know about its credibility and success that the company attempted to evade 6.942.447 euros in VAT, which was paid after conducting proceedings before the second-instance body, the Administrative Court and the Supreme Court, and only after the removal of the former government were definitive and valid tax decisions issued and the money collected. A credible investor does not avoid paying taxes, does not expose the state to the costs of conducting lengthy procedures, and is able to pay taxes from the project's income, if it is economically justified," he pointed out.

Koprivica said that hiding the actual price at which shares in the Možura Wind Park company are sold and to whom is not only contrary to the legal order, harmful from the perspective of undermining trust in institutions, but also directly economically harmful to the state of Montenegro. It is easy to explain to someone for whom the public interest is above all else.

He added that hiding the actual sale price of the shares in the Možura wind farm caused direct tax damage to Montenegro.

"Instead of using the actual value of the transaction of 10,3 million euros as the basis for calculating taxes, the competent authorities were shown a much lower price of 3,5 million euros. In this way, the tax base was reduced and it was possible for the million-dollar profit to be redirected through an intermediary offshore company, beyond the reach of the Montenegrin tax authorities. The difference of almost seven million euros is not only a matter of a hidden corrupt business transaction, which is contrary to the contract, but also a matter of deprived public revenues that belonged to the citizens of Montenegro. This case shows how concealing the actual value of transactions can lead to serious damage to the state budget and requires a full determination of the responsibility of all participants in the transaction," he said.

Koprivica pointed out that the Internal Audit Report in Malta, which, he claims, he submitted to the Inquiry Committee so that all MPs would understand the extent of the corrupt network, clearly states that the Vujović law firm pointed out in an email dated December 17, 2015 that "this can also be interpreted by the Tax Administration as an attempt to avoid paying the full amount of capital gains tax."

"And that is precisely what was done by causing damage to the state of Montenegro, according to a perfidiously designed plan, so it is surprising how some MPs, admittedly in the heat of defending the corruption of the former regime, also do not notice or misinform the public in order to protect the luminaries of corruption from the former regime, confirming their continuity with those socially harmful commitments. Also, that Report, in addition to many other relevant things, contains data on hidden income and breach of contract by the domestic company "Čelebić", whose owner is also a business partner of former Prime Minister Đukanović, and the DPS MPs want, contrary to elementary logic, to convince the Montenegrin public that Milo Đukanović's business partner was making deals behind his back with Spanish and offshore companies, playing up the contract signed with the Government headed by Milo Đukanović," he said.

He also said that, in addition, the aforementioned Report contains data on the hidden income of the company Adriatic Capital Advisory doo, which, as he claims, despite the lack of real economic activities, has enormous income and attractive locations in the cadastral municipality of Donja Lastva, which numerous Montenegrin journalists have factually written about.

"It is particularly worrying that certain politicians and protagonists of the former government are investing more energy in relativizing and defending harmful activities than in demanding that the full truth be fully established and the damage caused to Montenegro be examined. Instead of insisting on transparency, accountability and the protection of the public interest, they are acting as lawyers for the structures and interests that are participants in the corruption in the Možura project. Citizens have the right to know where every euro ended up and whether the state budget was damaged by millions of dollars. Anyone who tries to divert attention from these issues or to abolish those responsible in advance sends a message that private and political interests are more important than the interests of the state. Montenegro must not be held hostage to silence, justification of corruption and harmful activities and political protection of those who should be held accountable for their socially harmful actions," he concluded.