In December 2022, the Mojkovac company "Tara Aerospace" did not receive approval to deliver equipment for Ethiopian fighter planes, due to the conflict in that African country.
The Ministry of Economic Development and Tourism (MERT) rejected the delivery of the equipment to Ethiopia last month, due to the opinion of the Intelligence and Security Directorate of the Ministry of Defense. In the opinion signed by the acting director of the Directorate Janko Laković it is stated that it will not give consent, taking into account "the current conflicts on the territory of Ethiopia, which is the ultimate user of the weapons and military equipment in question, as well as the possibility of misuse of additional weapons with the aim of strengthening military offensives and positions which would greatly violate the human rights of the population".
Depending on the situation in that country and the views of other ministries, the Ministry approved or prohibited exports, as can be seen from several decisions in which Center for Investigative Journalism of Montenegro (CIN-CG) had insight under the Law on Free Access to Information.
However, what failed in December 2022, succeeded nine months earlier. At the beginning of March last year, the pyro cartridges were transported from the Podgorica airport to the Ethiopian capital, Addis Ababa, by a "Locheed C-130H Hercules" plane of the Jordanian Air Force. "Vijesti" announced in October that a long-time employee of the Civil Aviation Agency, as she claims, lost her job after she reported doubts about the legality of the approval of the transport of this shipment.
The pyro cartridges, which were then delivered to the Ethiopians by "Tara", are used in the event of a malfunction or damage to the aircraft that prevents a safe landing. The pilot activates the pyro cartridges, which, together with the seat, throw him out of the cockpit, after which the parachute opens. This is one of the main export products of the Mojkovac company.
In January 2021, the Ministry of Foreign Affairs (MVP) also refused to issue approval to "Tara", stating that there is a conflict in Ethiopia between the central government and the regional government of Tigray, i.e. People's Liberation Front TPLF.
The document states, among other things, that the illegal proliferation of weapons in Ethiopia and the border regions is a problem.
"Despite the fact that the MFA strives to see the benefits for our economy, on the other hand, it appreciates that from the aspect of Montenegro's reputation in international relations, it is important to do everything possible so that our country continues to comply with its obligations from the relevant acts, decisions and recommendations to the issue of refraining from the export of weapons and military equipment to crisis areas (and to obtain at least the necessary guarantees that there will be no diversion of the said goods, which - if it happens - would harm the reputation of Montenegro at the international level), especially before the possible negative political consequences which the approval of exports to crisis areas would lead to would be greater than the economic benefits that Montenegro would have," states the explanation signed by the ambassador Veljko Milonjic.
Ethiopia was previously under a United Nations arms embargo because of its conflict with neighboring Eritrea. The conflicts between these two African countries have been going on for decades. However, even after the lifting of the UN embargo, arms deliveries were occasionally prohibited. And due to the nature of the conflict, there have been calls to reimpose the embargo on Ethiopia.
CEO of "Tara" Milan Vujisic he told CIN-CG that their business "is carried out in accordance with the Law on the Control of the Export of Dual-Use Goods, the Law on Foreign Trade in Arms and Military Equipment, while respecting international guidelines and recommendations".
Revenues over 60 million euros
CIN-CG had insight into more than 150 export licenses prescribed by the Law on Foreign Trade in Arms and Military Equipment, which were obtained by three large Montenegrin companies.
All three - "Montenegro Defense Industry" from Podgorica, "Tara Aerospace" from Mojkovac and "Poliex" from Beran - were partially or majority owned by the state. "MDI" and Poliex" were privatized in 2014/2015, and the predecessor "Tara" in 2007. Today, the government only has a partial share in "Tara".
These three companies involved in the business of exporting arms and military equipment, in the last five years alone, reported business income of almost 60 million euros, as can be seen from their income statements. The fact that, for example, the net income of "MDI" in just one year was higher than what the Government received from the sale of this state-owned company to private individuals speaks of how lucrative this business is now. Among other things, "MDI" did business with Western powers and authoritarian regimes, and even with the company of one of the largest arms dealers in the region. Slobodan Tešić, which in the meantime came under the sanctions of the United States of America and Great Britain.
The decision of the American authorities states that Tešić, who was born in Kiseljak, Bosnia and Herzegovina, used bribes to secure contracts with different countries, but also took potential clients on expensive trips and paid school fees for their children in the countries To the West.
Suspicious owner, deals through related companies
The majority owner of "Tara" is, for example, a controversial Swiss arms dealer Heinrich Thomet through two companies - "BT International" from Bern (34,9 percent) and "BTI Montenegro" from Podgorica (15,2 percent).
Following the privatization process, CIN-CG wrote at the end of 2014 that the Government Milo Đukanović gave concessions to the Swiss businessman, despite the fact that he did not fulfill his obligations on time.
Investigative journalism networks and Amnesty International alleged that Tomet was involved in arms smuggling and was on a watch list by US authorities. He denied involvement in any illegal activities, claiming they were rigging the competition.
"Regarding the negative media coverage from a few years ago, we would like to remind you that nothing of what has been stated has been proven, and that the majority owner of the company 'Tara Aerospace' has not been prosecuted based on the accusations from the media," said the director of this factory, Milan Vujisić, for CIN-CG .
When asked by journalists to answer in detail a set of questions about the company's affairs, Vujisić said:
"We hope that you keep in mind that the constant repetition of unproven accusations from 10 years ago, as well as the publication of general assumptions without a real basis in the domestic media, is collapsing our business reputation and that we will be forced to protect it through the courts if necessary."
The name is also mentioned in the company's board of directors Bogdan Chupryna. Chupryna is also the owner of the Podgorica company "Tara technology", which at one point was called "Rozenia", it can be seen from the documentation from the Central Register of Business Entities (CRPS).
"Rozenia limited" is the name of the Cypriot company through which, according to the export permits that CIN-CG had access to, "Tara" contracted exports with Ukraine, Hungary, India, Georgia, Kazakhstan and Pakistan. Associated with that company is a yahoo mail address almost identical to the one Chupryna reported to CRPS.
On the website of the Cypriot company rozenia.org, it is stated that it is engaged in the transportation of large cargo planes "Antonov" and "Ilyushin", as well as the sale of spare parts for aircraft.
Slavko Vujisić owns "Poliex", but also a quarter of "Tara"
The government now has an eighth of the shares (12,58 percent) in "Tara", and it has twice as much Slavko Vujisic (25,4 percent). Today, Vujisić is the largest owner of the explosives production company "Poliex" in Beran (82,8 percent).
Most of the shares in the Beran company were among those offered for privatization in 2014/2015. year, and the only offer was from the consortium consisting of Vujisić and "Prva iskra namenska" from Serbia. The price for the majority package of shares was then 138,5 thousand euros, with the obligation to invest.
Out of the last five years, the net income of "Poliex" exceeded the amount for which the state sold its package for four years.
Export permits show, among other things, that this company exported mainly to the countries of the region, but also that its products - predominantly ammonium perchlorate, which is massively used in the production of rocket fuels and also in pyrotechnics - reached South Korea and Malaysia.
The company told CIN-CG that they are on collective vacation until the beginning of February.
The owner of "Poliex" Slavko Vujisić, according to unofficial information, tried to secure a larger share in "Tara".
"Regarding the transfer of shares in the name of Mr. Slavko Vujisić, we would like to inform you that the majority shareholders of the company indicated that it was an illegal transfer of shares and that we will wait for the decision of the competent court or an agreement in this regard", said the director of "Tara" Milan Vujisic for CIN-CG.
Arrest of arms dealer in Božaj
In the same period of 2014/2015, the government of Đukanović decided to privatize "MDI" for only 680.000 euros, with mandatory investments. Although MANS warned that the then Law on Foreign Investments did not allow foreigners to have a majority stake in Montenegrin arms and military equipment companies, "MDI" was sold to a consortium of companies consisting of the Israeli "ATL - Atlantic Technologies" and the Serbian "CPR- Impex". According to BIRN, "ATL" is linked to a controversial Belgian arms and diamond dealer. Serge Miller.
Immediately after the signing of the purchase agreement for "MDI", the Montenegrin police arrested Miller at the Božaj border crossing in March 2015 on the basis of an Interpol red warrant, which was issued the day before in Brussels, due to his alleged involvement in an international chain of cocaine smuggling, money laundering and membership in a criminal organization.
Executive Director of "MDI" Zoran Damjanović he told CIN-CG that, in addition to the payment of the share in the amount of 680.000 euros, "476.631,52 euros were also paid to the government for the purchase of office space and over 12 million euros based on taxes and contributions, which continue to be paid in increased amounts with the growth of income ".
"Thanks to the engagement of 'MDI', the factories '4. Novembar' (former Tara) from Mojkovac and 'Polieks' from Beran were saved from bankruptcy, successfully privatized, employed around 200 new workers, won new products that are exported and paid over 30 million taxes and contributions to the state of Montenegro", boasted Damjanović.
Several media reported that he is the owner of "CPR". Petar Montenegrin arrested before the privatization of "MDI" on suspicion of participating in the rigging of tenders for the Serbian Army. "Tehnoremont", a daughter company of "CPR Impeksa", was under investigation by the United Nations because it was suspected of being involved in the supply of Islamists in Libya.
At the end of last year, "Tara" had 170 employees, "Poliex" 70, and "MDI" 17, according to documents on the portal of the Revenue and Customs Administration.
In the last five years, the total reported business income of "Tara" ranged from 3,5 to 6,7 million, "Poliex" from 1,9 to 3,1 million, and "MDI" from 3,1 to 5,2 million euros. Of these three companies, only Mojkovac had multi-year losses.
The company "Tara" announced in May that they had one of the most prosperous business years in terms of contracts, but that they needed the support of banks.
"This is not due to the bad economic situation of 'Tara', but solely due to the lack of Montenegrin and European banks that would approve transfers for military factories in Balkan countries that are not members of the EU," according to the statement of executive director Milan Vujisić.
Vujisić then added that despite numerous requests for help to the Central Bank of Montenegro, as well as to the Ministry of Finance, real support was lacking.
"Despite the business barriers in the banking sector, 'Tara' successfully continued its operations," said Vujisic for CIN-CG.
CIN-CG interlocutors from MERT explained that the problem is due to the banking system to which Montenegro belongs, which is why payments are often blocked. Neighboring Serbia allegedly resolved the issue by establishing a special bank.
Income from spreading knowledge
From the permits that CIN-CG had access to, it can be seen that the companies also generated income from the transfer of their knowledge and experience (know-how). Thus, in one contract, it is stated that in the spring of last year, the transfer of knowledge concerning the technology for the production of ammonium perchlorate took place. The contract with a regional company was signed by the company "MDI", and the production of this compound is handled by the company "Poliex". It is also one of its main export products.
An export permit is normally only possible with the prior consent of the Ministries of the Interior, Foreign Affairs and Defense. When deciding on granting consent, the Ministry of Foreign Affairs must take into account criteria such as the preservation of regional peace and security and the respect of Montenegro's international obligations, especially sanctions. The Ministry of Defense takes into account the national security of Montenegro and the countries with which it has partner relations, as well as the intended end use of this type of goods and the risk of re-export. The Ministry of Internal Affairs assesses the impact on traffic safety, life protection, personal and property security of citizens. The process includes verification of the end user, that is, the one to whom the weapon or military equipment will be delivered. The final decision is made by MERT.
MERT refused to issue licenses to Montenegrin companies when any other ministry objected. So, for example, in May 2017, a license to export 300 rifles to the Pakistani "Adil arms company" was refused. In the finding of the MFA, it is stated that in the process of checking the end user, they found that the "documentation was false and falsified".
In at least one case, it happened that the company itself gave up the license, because, for example, the advance was not paid. This happened in September 2019, when the Cypriot company "Fameway investment", which was supposed to sell products owned by the Ministry of Defense and the Ministry of Interior, to the Ministry of Defense of Uganda, did not do it.
MERT refused to issue consent even when a longer term was requested. One such case is a contract worth 550.000 euros through the Cypriot "Rozenia" for a Ukrainian company.
In the exporter's request from 2022, it is stated that there was a delay in taking over the subject funds by the buyer. The delay, as stated, was caused by circumstances beyond the company's control, and it refers to the situation with the coronavirus pandemic, which resulted in limited opportunities for the timely procurement of materials and the organization of production in the planned period. It is also stated that the conflict in Ukraine significantly slowed down and reduced the possibility of organizing the transport of this type of goods in the short term, given the various price increases related to fuel, taxes and others.
In its decision, the Ministry referred to the legal provision by which the permit can be extended for a maximum of one year, so it rejected the Montenegrin exporter.
Even in 2021, the license, which was supposed to deliver goods to the Air Force Command of Ukraine through the same Cypriot company, could not be changed. In the explanation, it is stated that it was a matter of an important change to the export permit, which would increase the amount by around 400.000 euros, so it was not given the green light.
Business partner under US sanctions
The company "MDI" submitted to CIN-CG the names of the end users for the delivery of its products, but also in the case of brokerage transactions. Brokerage involves the purchase of controlled goods from a supplier from a foreign country and their sale to a buyer from another country, with or without crossing the border of Montenegro.
"Contracts on the purchase and sale of weapons and military equipment concluded with foreign buyers contain a confidentiality clause, based on which no contracting party has the right to forward information from the contract to a third party, without the written approval of the other contracting party," said MDI to questions from CIN- CG on the details of the delivered goods.
Unlike "Tara" and "Poliex", which export their goods, "MDI" exported surplus weapons and equipment that it received in tenders from, for example, the Ministry of Defense. This could be seen from several export permits.
The data submitted to "MDI" show that the net income of the company from Podgorica reached less than 800.000 euros in 2021, which is 120.000 more than the government earned from its sale in 2015.
In 2016, her clients included the US government, the ministries of defense of Saudi Arabia, Iraq and Uganda, the armed forces of Ghana and the air force of Nigeria.
Particularly interesting are the contracts she had with the Ministry of Defense of Saudi Arabia in 2017, which she performed through "Partizan tech". According to data from the Serbian Agency for Economic Entities, the company "Partizan tech" is owned by Slobodan Tešić, who has been under US sanctions since the end of 2017 as an arms dealer. Several persons associated with Tešić are also under sanctions, including the managers of the company "Partizan tech".
Contracts with "Partizan Tech" for the purchase of mines ranged in value from several tens to several hundred thousand dollars.
Previously, Tešić was under a United Nations travel ban for almost ten years for supplying arms to the Liberian regime despite the embargo.
The executive director of "MDI", Zoran Damjanović, insists that they have never supplied weapons and military equipment to countries that have embargoes from the UN, the European Union or major powers.
"It is very easy to track the transport of these goods, which is mostly carried out by ships or airplanes that are tracked via satellite, and if the goods are transported by air or land through third countries, the carrier is obliged to obtain permission for overflight or transit through those countries." he said.
When exporting weapons and military equipment to certain countries, the exporter is obliged to inform the UN through the competent Ministry of Foreign Affairs of the means of transport, which route and on which day it will be shipped, precisely in order to enable monitoring of the delivery.
"'MDI' did not have any export of weapons and military equipment through 'Partizan tech' or any of Tešić's companies at the time when Mr. Tešić was under the UN embargo, and especially not since the end of 2017, when US sanctions were imposed on the named person" , points out Damjanović, who adds that it is easy to check in MERT.
He added that "MDI" has never submitted requests for export permits to countries that were under sanctions regimes of the UN, EU or major powers.
In the last five years, Damjanović states that the company has never been rejected by the Ministry of Foreign Affairs when issuing export permits.
Damjanović insists that the war in Ukraine has no effect on the business of "MDI". "Given that 'MDI' has never submitted requests for the export of weapons and military equipment to war-torn countries," he said.
The civil sector warned earlier that parliamentary oversight in this area is almost non-existent.
Clients are also the authorities of countries from the list of non-free countries
From the permits that CIN-CG had insight into, it can be seen that the end users are more often countries that are not considered free or partially free.
Among the countries with which these three companies did business, which are at the bottom of the list of global freedoms, are Chad, Iraq, Afghanistan, Ethiopia, Kazakhstan, Saudi Arabia, the United Arab Emirates...
"Freedom House" describes Chad as an authoritarian state, in which the army intervened after the death of the long-time president.
Saudi Arabia is often the target of criticism for its record in the field of respect for human rights, and the US authorities pointed to the involvement of the top of the state in the murder of journalist Jamal Khashoggi.
Companies also sought permits from the Ministry to present their products at fairs from France to India.
In recent years, a lot has been exported to Ukraine, which is now the target of Russian aggression.
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