How Miloš Medenica earned a villa - with the help of his godfather up to 684.000 euros

The son of the former president of the Supreme Court Vesne Medenica, Milos Medenica, at the beginning of last year he sold his unfinished villa in Krašići for 700.000 euros, and he only invested 16.000 in it, while the rest was financed by a businessman from Tivat Rado Arsic.

These are the data from the sales documents obtained by the Research Center of the Network for the Affirmation of the Non-Governmental Sector (MANS).

In mid-2012, the Ministry of Sustainable Development and Tourism (MORT) issued a building permit to Miloš Medenica, Rado Arsić and their business partner. Željko Kovinić, enables the construction of three tourist villas on the coast of the Tivat settlement Krašići, with a total gross area of ​​about 440 square meters. This permit referred to cadastral plots that were owned by Medenica and its partners.

The documentation obtained by the Research Center of MANS shows that it was Arsić and Kovinić who introduced Miloš Medenica into this business, by selling him parts of their plots, with a total area of ​​2006 square meters, in 160, making him the son of Vesna Medenice got its place in this investment. The sales contracts show that Medenica paid only 16.000 euros for this plot.

Medenica invested two plots of land that he bought from Arsić and Kovinić

After the construction permit was obtained and the works started, in September 2016, Arsić and Medenica subsequently concluded a contract on joint investment construction, which regulated the financing of the construction of Miloš's villa in Krašići.

The contract stipulates that Medenica, as his stake in this business venture, enters two plots of land that he previously bought from Arsić and Kovinić, while Arsić's obligation was to build the building.

With this contract, Arsić undertook to bear the costs of developing the project and paying fees for the development of the land, as well as obtaining all consents and permits. Arsić's obligation was also to prepare Miloš's plot for construction, to regulate the connections for electricity, water and sewage network, to bear the full costs of carrying out all the works...

On the plots of Miloš Medenica, the construction of a tourist villa with a total area of ​​116 square meters was overlooked. The agreement on joint construction stipulated that 75 percent of the constructed square footage would belong to Arsić, and Medenica the remaining 25. Arsić and Medenica agreed that the investment for the construction of the aforementioned villa, together with the plots that Miloš brought into the project, would amount to only 69.000 euros.

From a quarter of the building to the sole owner

Although the contract stipulated that he would receive only one quarter of the built villa, Miloš Medenica, with the consent of Arsić, was registered as the sole owner of the entire building in 2018. The situation on the ground showed that Arsić built a building that is about 50 square meters larger (167 square meters) than was foreseen in the project, which is why the note "exceeding the building permit" was entered in the real estate list.

How valuable the gift Medenica received from Arsić was shown at the beginning of 2021 when Miloš sold his villa to a Turkish citizen for the sum of 700.000 euros.

The MANS research center tried to get a comment from the businessman from Tivat on the business he had with the son of Vesna Medenica, including the circumstances under which Miloš Medenica became the owner of such valuable property, but Arsić did not answer the questions sent.

Arsić did not even answer the question whether, apart from the mentioned plot, Medenica had other investments in the construction of the villa, which would justify the fact that despite the joint construction contract, Miloš still registered for 100 percent of the building, and not for one quarter as was stipulated in the contract.

He claimed before the prosecutors that he did not know Kovinić

Back in 2020, MANS filed a criminal complaint against Miloš Medenica and Rad Arsić to the competent prosecutor's office for illegal construction and usurpation of land in the marine property zone in Krašići, as well as to the competent MORT inspections.

The basic state prosecution then rejected the criminal charges against Medenica, while the outcome of the proceedings for Arsić is not yet known.

It is interesting that MORT then prohibited MANS from accessing information related to the actions of competent inspections in the case of illegal construction in Medenica and Arsić.

"Premature disclosure of the requested information has the possibility of drawing conclusions and prejudicing potential liability before the control and inspection have been completed," reads MORT's response to MANS's request.

At the end of 2020, Miloš Medenica was questioned in the Basic State Prosecutor's Office in Kotor regarding the circumstances of the criminal complaint filed by MANS.

He then stated that the last time he was on the construction site of his villa was in 2017, when the rough construction work was completed, and that he entrusted Arsić with all the tasks related to obtaining consent and building that project. Medenica confirmed before the prosecutor that he knew about the construction permit that was issued in his name, Rad Arsić and Željko Kovinić.

However, although he had previously bought a plot of land from Kovinić with which he entered into the business of building a villa in Krašići, Medenica stated before the competent prosecutor that he did not know him. Although he is formally listed as an investor of a building that was built illegally, the ODT in Kotor believed Medenica that he was not familiar with the details of the construction, and therefore dismissed the criminal complaint.

Vesna Medenica was arrested ten days ago, under the suspicion that, as a member of the criminal organization formed by her son Miloš, she committed the criminal offense of unlawful influence. Miloš Medenica left Montenegro earlier and is not available to the Montenegrin authorities.

Arsić also gifted real estate to Vesna Medenica's granddaughter

Rado Arsić recently confirmed for the MANS Research Center that he has godfather relations with the family of Vesna Medenica, which justified the gift he gave to her granddaughter in 2018.

A plot of 586 square meters in the very center of Kolašin, worth 21.000 euros, was registered in the name of the minor granddaughter Medenica, as, as Arsić stated in the gift contract, "an expression of gratitude".

Only ten days before giving the gift, Arsić planned to build a villa of about 340 square meters on that plot, for which he had already paid utilities and received a building permit.

Today, there is a building on the field that is identical to the one that Arsić planned to build, while the property list states that it was acquired as a gift. The planning documentation for that building showed that the value of the investment was at least 125.000 euros, while Arsić claims that he did not participate in the construction of the house.