The club paid with loans or donations

The Tivat mayor accuses the SDP official of being involved in embezzlement

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Arsenal FC auxiliary field, Photo: Municipality
Arsenal FC auxiliary field, Photo: Municipality
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Mayor of Tivat Željko Komnenović submitted to the Basic State Prosecutor's Office in Kotor a "supplement to the notification with elements of the criminal complaint", which refers to the operations of the football club Arsenal from Tivat at a time when it was headed by a prominent official of the Tivat SDP and the former vice president of the Tivat Municipality. Krsto Bošković.

He is the head of Arsenal, which is owned by the Municipality, from mid-December 2020 to mid-April 2021, when the local administration of Tivat appointed a new convocation of the club's Assembly and changed its leadership, electing a new Board of Directors of FC Arsenal headed by Dejan Kandić. Previously, the city administration initiated the process of internal audit of FC Arsenal's operations at the time of the former DPS-SD-HGI administration of Tivat, when the head of the club was a Tivat businessman close to DPS as president of the Board of Directors. Rado Gago Arsić. That procedure was carried out by the Internal Audit Service of the Municipality headed by Jelom Mrdak, showed numerous irregularities and illegalities in the club's operations, as well as the actions of the former mayor Siniše Kusovac (DPS) and former municipal secretaries for youth, sports and social affairs Darke Ognjenović (DPS).

The Special State Prosecutor's Office, which opened an investigation, has been dealing with the findings of the internal audit regarding the illegal operations of Arsenal and the possible interests of the Municipality as the owner of the club, the harmful actions of the former club and the city administration, since a few months ago. SDT investigates the operations of FC Arsenal for the period 2018-2020. years, and related to the possible illegal disposal of the property of the Municipality by the management of the club, the possible conclusion of harmful contracts on the release of that municipal property with a third party, and the possible illegal financing of FC Arsenal from the budget of the Municipality, in addition to the funds provided for by the Budget Decision, and all of which resulted in damage to the Municipality, which is measured in hundreds of thousands of euros.

Ten days ago, Komnenović (NP) sent to the ODT in Kotor, based on the supplementary findings of the municipal Internal Audit Service, an amendment to the criminal report for several controversial things that happened in the operations of FC Arsenal in the period when, after Arsić's sudden resignation, Krsto Bošković came to the club president in mid-December 2020.

In a letter to the ODT, Komnenović states that he thereby fulfills his obligation under the Criminal Procedure Act because "he was informed that there is a suspicion that several criminal acts have been committed in the financial operations of FC Arsenal", and he submits additional evidence to the Prosecutor's Office in the form of the latest report of the Internal Audit Service and two controversial decisions by Bošković on "loans" to Arsenal at the time when he was at the head of the club. In a letter to the ODT, Komnenović states that the report on the audit of Arsenal's operations "was done very professionally, according to the rules of the profession and science, and from it arises the suspicion that criminal offenses have been committed that are being prosecuted ex officio".

"As the Municipality of Tivat does not have the resources and staff that could properly qualify possible criminal acts, which the Internal Audit Service rightfully pointed out, it was decided to inform the competent Prosecutor's Office in accordance with Article 254 of the Criminal Procedure Law. The competent Prosecutor's Office is expected to determine which responsible persons from FC Arsenal should be prosecuted", the mayor's letter to the Kotor ODT reads.

The internal audit service is reviewing the operations of FC Arsenal for the period from the end of November 2020 to the end of March 2021, when it was headed by Bošković (appointed by the same Assembly of Arsenal, in which most of the representatives of Tivat DPS sat, and which previously led the club Arsića), stated that Bošković continued the controversial behavior of his predecessor and that the club was managed and operated outside the regulations governing that area. Thus, among other things, the audit established that during the handover of the duties of club president between Arsić and Bošković, no financial report with a balance sheet and income statement was submitted, as well as that Bošković was never, because he did not meet the conditions stipulated by law, in the Ministry of Education. of culture, science and sport registered as the new legal representative of FC Arsenal.

Despite this and the fact that the club assembly where he was elected as the new president was not held in accordance with the Arsenal FC Statute, he signed certain acts and decisions on behalf of the club - among them were two "decisions on the completed loan" made on March 22 2021. One is in the amount of 2.088 euros "for regular financing of friendly and championship matches", but it is not clear whether these are borrowed funds and from whom they were borrowed, because in the same "decision on the executed loan" it is stated that those funds "donated". In another decision made and signed by Bošković as club president, it is stated that due to the fact that the founder (Municipality) "has not financed the club since October 2020 - despite our several requests for the transfer of dedicated funds, we have not generated income on that basis". businessman Rado Arsić allegedly loaned Arsenal a total of 20.470 euros "for regular financing of player salaries and their compensation for 2020 and 2021".

The report of the Internal Audit Service states that these decisions "are not legally valid" and that they "indicate suspicions of fraudulent activities", which they immediately informed the new management of Arsenal headed by Kandić, as well as Mayor Komnenović. All the time that Bošković was formally at the head of Arsenal, according to the findings of the interim audit, all orders to withdraw money from the club's giro account in the bank were still signed by the former president Arsić "because Bošković could not have a deposited signature, nor could he be registered as president Board of Directors of the club".

Bank statements were submitted to the audit service, but not the documentation confirming and justifying the expenditure from the account of the withdrawn money. That documentation, as the audit concluded, was not used by the competent municipal secretariat, nor by the commissions that dealt with the distribution of funds to fellow organizations and the control of the use of that money.

"In the report on the work of the Commission for reviewing the financial reports of sports organizations for 2020, which consists of the president Kristina Petrović and members Dragana Francesković i Aleksandar Dakovic, it is stated that FC Arsenal was granted 120.000 euros, which the club justified. According to the President of the Commission, the documentation on which they concluded this is the statement of the banks from which they collected the amount of 120.000 euros, so they did not have to provide us with the documentation on the basis of which they confirm this. It is not clear to us the way of work of the Commission and the situation they stated without valid supporting documentation", the audit report says.

They also note that the second, the Commission for the distribution of funds to sports organizations for 2021, which was then also headed by Kristina Petrović (DPS), made a decision to allocate an additional 60.000 euros to FC Arsenal "due to the high costs of the competition", but in the explanation of that decision, the Commission does not state at all that FC Arsenal does not meet the conditions of that competition because at the time of applying, the club had almost 13 thousand euros in unpaid tax debts. It is interesting that despite such actions of the former management of Arsenal, the only member of the SDP in SO Tivat Aleksandar Djurovic strongly opposed the adoption of the Decision on the appointment of the new Arsenal FC Assembly at the session of the local parliament on March 19 last year. With that decision, the previously almost excluded DPS-composition of the club's Assembly was replaced, which a few months earlier, at a session held illegally, as it now appears, appointed Đurović's party colleague Bošković as the club's president. The latter then, as the audit findings show, continued with the illegal and harmful way of managing FC Arsenal, which is already being dealt with by prosecutorial and investigative bodies.

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