Mugoša's decision costs the citizens 4,5 million euros

Montenegro has lost another dispute before the European Court of Human Rights, and this time it will have to pay the Podgorica company "Kips" more than 4,5 million euros in damages.

This is how much the European Court assessed the damage caused by the fact that fourteen years ago, the then mayor of Podgorica, Miomir Mugoša, stopped the construction of a shopping center for Risto Drekalović's company at the Old Airport.

Yesterday, Mugoša did not want to comment on the court's verdict.

Although in June of last year a judgment was passed that several articles of the European Convention on the Protection of Human Rights and Fundamental Freedoms and accompanying protocols were violated in this case, yesterday the court passed a decision on just satisfaction.

Commenting on yesterday's verdict, defense attorney Predrag Savić said that it represented only partial satisfaction of justice and fairness.

"Because, given that the company 'Kips' has suffered continuous damage for fourteen years and is still suffering it, and that the lost profit was awarded and recognized only for the years 2006 and 2007, it is quite certain that the company 'Kips' will exercise his right to file the remaining legal remedy and request that the Grand Chamber of the European Court in Strasbourg review the said judgment. Especially since the company has irrefutably established evidence of the amount of that damage," Savić told "Vijesti".

The decision on whether this case will come before the Grand Chamber at all hinges on the position taken by the five-judge panel. The case becomes final if the panel does not send it to the Grand Chamber.

The case was initiated by a petition against Montenegro, which was submitted to the court in Strasbourg by "Kips" and its owner in mid-June 2006.

In 1998, the company signed a contract with the Social Fund for construction land in Podgorica, by which it acquired the right to use construction land of almost 11.500 square meters. The construction of a large shopping center and business premises was planned on that land.

The construction of that center was foreseen in the Detailed Urban Plan (DUP) in 2004, but in June 2005, the then mayor prohibited further construction in that area.

Instead of the Old Airport, Drekalović opened a shopping center on Cijevna at the end of 2007.

The European Court found that by refusing to issue a construction permit for a shopping center on their plot in Podgorica, which was marked by the DUP, the state violated the right to a fair trial, to an effective legal remedy and to property.

In the proceedings, "Kips" submitted to the European Court a financial analysis of the international consulting network "KPMG", on the basis of which it requested that more than 30,7 million euros be paid to it in the name of suffered material damage and lost profits.

"In particular, the first applicant requested the payment of 2005 euros for the compensation of lost profits for the 'period from 30.000.000 to an undefined period of business in the future', while in relation to the material damage suffered for the costs of obtaining a building permit, preparatory actions for the construction of the facility, purchase and delivery of the assembly of the concrete structure of the facility, payments for the purchase of dedicated equipment for the facility, as well as the costs of the PR Agency based on services to resolve the crisis situation, the lease of commercial space in the press in 2005 and 2006 for the purpose of public defense and printing of brochures in 2005 and 2006, demanded a total amount of 678,582.47 euros", it is stated in the statement delivered yesterday by the representative of Montenegro before the court in Strasbourg, Valentina Pavličić.

The European Court further noted that "Kips" did not originally plan to build TC Cijevna, and that it was built because it was unable to obtain a building permit for the construction of a shopping center at the Old Airport.

Bearing in mind that the second shopping center was based on the same plans, the European Court accepted that TC Cijevna was built instead of the planned shopping center at the Old Airport. As TC Cijevna was opened at the end of 2007, the court, starting from the main verdict and arguments presented by the parties in the proceedings, determined that the first applicant suffered damage due to lost profits only for the period of 2006 and 2007.

Pavličić states that the court therefore took the profit generated by TC Cijevna as a starting point for the assessment of the lost profit that the planned shopping center at the Old Airport would achieve.

"As in the submitted financial reports, the realized profit of TC Cijevna varied from year to year (e.g. for the first two years of operation, i.e. 2008 and 2009, it amounted to 5,346,093.87 euros and 2,177,714.71 euros), the European Court considered it fair to take the average amount as assumed profit per year, that is, the amount of 2,267,797.60 euros", explained Pavličić.

She added that the court ultimately determined the total amount of damages suffered due to lost profit at 4,535,595.20 euros and obliged the state to pay the said amount within three months from the finality of the verdict. When it comes to the claimed material damage and the rest of the claim for compensation for lost profit, the European Court rejected it as unfounded.

URA: Mugoša is liable for damages

The former mayor of Podgorica, Miomir Mugoša, should be immediately prosecuted and put behind bars just because the citizens will pay 4,5 million euros to the "Kips" company, the Podgorica URA board said yesterday.

"Arrogance mixed with incompetence and incompetence of the former mayor of Podgorica is gaining even more force with the final verdict from Strasbourg, and he should be held accountable for the damage caused to the state and citizens," the announcement states. They also add that they have no illusions that the prosecution will do anything regarding the prosecution of Mugoša. Mugoši is on trial before the High Court on the charge that he caused millions of dollars in damage to the city coffers during the sale of city construction land to the "Carine" company, which he denies.