The municipality is not to blame for the robbery of Pljevljak

This is the first verdict out of a total of ninety lawsuits filed by the managers of residential buildings, after the Agency for the Housing and Business Fund spent money inappropriately

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Municipality that founded the Agency, Photo: Goran Malidžan
Municipality that founded the Agency, Photo: Goran Malidžan
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The municipality of Pljevlja is not responsible for the damage suffered by the tenants, after the Housing and Business Fund Agency, which was founded by the local self-government, spent the money paid for the maintenance of the residential building in an inappropriate manner.

This is stated in the verdict of the judge of the Basic Court in Pljevlja Marine Jelovac, according to the complaint of the tenants of the building in Tršova street.

This is the first judgment out of a total of ninety lawsuits filed by the managers of residential buildings, in which they ask the Municipality to return the money owed to them by the Housing and Business Fund Agency.

The court stated that in this case, the Municipality, in accordance with its powers, undertook all the actions that are required by the Law on Local Self-Government, the Decision on Organization and the Decision on the Establishment of the Housing and Business Fund Agency, and that there can be no talk of illegal and irregular work local government, which is why there is no responsibility for the damage claimed by the tenants.

The court found that the damage suffered was a consequence of the illegal work of the executive director of the Agency, and not of the Municipality of Pljevlja.

In the Housing and Business Fund Agency of the Municipality of Pljevlja, bankruptcy was declared at the beginning of last year and the liquidation procedure was initiated. The agency owed 1.130.088 euros to residential buildings, employees, the Tax Administration and suppliers, and the entire property was valued at 9.370 euros.

About 420.000 euros were owed to buildings for housing maintenance by the Housing and Business Fund Agency, of which about 114.000 euros remained in Atlas Bank, after the introduction of bankruptcy.

The buildings were damaged in the amount of 50 to 10 thousand euros, and the Agency illegally spent the money to pay salaries and pay bills.

In the lawsuit filed by the managers of the building in Tršova Street, it was stated that the money they paid for the maintenance of residential buildings was used by the Agency for non-purposeful and illegal purposes to meet its own needs and the ongoing needs of other legal entities.

"Since bankruptcy proceedings were opened against the Agency due to losses in business, and then liquidation proceedings, the plaintiff is unable to recover the funds necessary for the smooth maintenance of residential buildings. The plaintiff finds responsibility for the resulting damage in the actions of the defendant, who caused the damage through her inaction," the lawsuit states.

They claim that the Municipality did not perform administrative supervision over the work of the company of which it is the founder, considering the fact that the Agency borrowed money from their account and other residential buildings for many years.

"The agency used the tenant's funds intended for the maintenance of the residential building, without the approval of the manager of the residential building, for the payment of salaries to employees, bonuses and advance payments to employees, payment of invoices to suppliers for delivered materials, etc. In this way, the Agency damaged the tenants for 2.978 euros," the lawsuit states.

The tenants also claim that the Municipality is responsible for the damage because, as the founder of the Agency, it had three members in the Board of Directors out of five, and that the responsible Secretariat should have supervised the work of the Agency, which was improperly spending the funds paid by the apartment owners for the maintenance of the residential building in which they live.

Director half a year in prison, suspended

At one of the earlier assembly sessions, the former president of the Municipality Igor Golubovic he said that the money that the Agency spent without authorization in the previous 10 years from citizens' accounts for the maintenance of residential buildings must be returned, most likely through works.

Due to the illegal spending of apartment owners' money, the Basic Court in Pljevlja convicted the former executive director of the Agency Enver Kaljic to six months in prison, suspended for two years.

The court found that from June 9, 2015 to October 4, 2019, Kaljić transferred funds from residential buildings in the amount of 298.379 euros, which were intended for the maintenance of residential buildings and which the residential buildings paid into the Agency's giro accounts, without approval manager of residential buildings entered the Agency's bookkeeping as loans, i.e. short-term financial loans.

According to the verdict, the agency, on Kaljic's order, used the money from the residential buildings for the payment of salaries, employee rewards, seasonal compensation and advance payments, payment of invoices to suppliers for delivered materials and services that were not used for the maintenance of residential buildings.

"For the needs of the Agency, cash payments were made from funds that were collected in cash by apartment owners, so that in the same period, on his order, these loans were reduced by the amount of 267.936 euros based on work orders and refunds on accounts for the maintenance of residential buildings, so that the amount of 30.443 euros remained unreturned".

Kaljić said in court that he found a bad situation in the company, which was late in paying wages, taxes and contributions. He said that he tried to save the Agency based on the practice that, as he pointed out, had been done for 20 to 30 years, with the tacit approval of the Board of Directors - to pay wages to workers from loans from the accounts of apartment owners.

He said that his work was controlled by a five-member Board of Directors, three of whom are elected by the municipality, and that he had verbally met the current mayor at the time, Igor Golubović, and his predecessor. Mirko Đačić with loans, and that they tacitly approved such a way of doing business. He also said that the two of them never drew his attention not to do that, but to manage as he knew how because the situation in the company was difficult.

He also said that the Municipal Assembly of Pljevlja adopted a report on his work every year and had an insight into the way the Agency operates.

In his defense, Kaljić stated that he did not use any of the loaned funds for his own needs, but that he exclusively worked for the interests of the Agency, saving it from closure and bankruptcy. He said that he had no intention of obtaining any illegal benefit for the Agency, himself or anyone else, but his intention was for the employees to survive, and for the loaned money to be returned when there was a possibility. He claims that he did so, that is, that the largest part of the loan was repaid, and that the remaining part is returned through works on residential buildings.

He also said that, if it had not been for the bankruptcy of Atlas Bank and the blocking of the Agency's account, the entire amount of borrowed funds would have been returned to the owners of the apartments.

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