The Municipality of Budva has not yet returned the 1,6 million euros to the state treasury, which the Government has given them. Duško Marković paid in the summer of 2020 for the payment of three back wages. The money for the wages of several hundred workers was paid during turbulent political events, because the Municipality's account was blocked.
From the Ministry of Finance, headed by the Minister Novica Vuković, there was no response to the question sent to "Vijesti" on October 10th - whether that department had initiated the procedure to collect the 1,6 million that the Municipality had not returned.
They are also silent in the Municipality of Budva, and do not want to answer whether they will return the money, even though the city treasury is full and there are currently more than 20 million euros in the account.
In the summer of 2020, the then Prime Minister Marković came to Budva to visit the newly formed government, offering a life-saving solution for the payment of back wages, after the municipal account was blocked by his own government.
A kind of political coup took place in the city at that time - the previously opposition Democratic Party of Socialists, with the help of councilors from the now defunct Montenegrin Party and a "fugitive" councilor from the Movement for Change. Stevan Džaković, managed to secure a parliamentary majority.
In the face of the political upheaval and the numerous unpleasant events that followed, the initial plan to introduce chaos into the city and put the Municipality in a hopeless situation was withdrawn by the Ministry of Finance, headed by Darko RadunovićThis government department is filing a request with the Commercial Court to block the Municipality's account, in order to collect 29,3 million euros, which the German-Austrian company WTE/EVN withdrew from the state account at the end of December 2019, by activating the state guarantee and leaving the management of the wastewater treatment plant in the Bečići settlement of Vještice.
The then president of the Commercial Court Blazo Jovanić, against whom criminal proceedings have since been initiated for abuse of office in several bankruptcy proceedings, in May 2020, he made a decision, on the eve of the "famous" session of the Budva parliament that took place in a tent on the meadow in front of the Municipal Assembly building, on the agenda of which the new parliamentary majority gathered around the DPS demanded the dismissal of the then leaders of the Municipality and the Assembly, Marko Tsarević (Democratic Front) i Krsto Radović (Democrats).
Carević and Radović will be replaced on June 11th in the conference room of the “Slovenska plaža” Tourist Resort, where councilors from the DPS, SD, LP and Džaković gathered, and at the first subsequent session they will appoint the mayor of the municipality. Nikola Divanović (DPS).
This was followed by protests by supporters of the DF and the Democrats, as well as a strike by employees who receive salaries from the budget, because they were unable to receive their salaries during the summer.
Nothing from the announced criminal prosecution
At the beginning of August, the then Prime Minister Marković (DPS) came to Budva to help, calling Divanović and his colleagues “heroes of spring” and promising that the Government would provide money from the budget reserve, which came true a few days later, and almost 500 employees in the local administration, public institutions and RTV Budva were provided with back wages. Allegedly, the money for salaries was paid directly from the state treasury to the workers’ accounts, i.e. it bypassed the account of the Budva Municipality.
The Municipality has previously repeatedly stressed that there is no legal act under which the Municipality is obligated to return the money to the Government, and the agreement that Marković reached with his party colleague Divanović during the election campaign is, by all accounts, legally questionable. The local administration then announced criminal prosecution, which never happened.
Instead of criminal liability, a kind of reconciliation took place, and DPS has now returned to power in Budva through a back door, or rather, thanks to its so-called project support, the formation of a government was made possible, the backbone of which is "Budva our city - Nikola Jovanović", the European Union and the Civic Movement URA.
The Ministry of Finance announced to "Vijesti" two and a half years ago that it would initiate talks with representatives of the Municipality of Budva in order to return the money to the state treasury. At that time, the Ministry of Finance, headed by Aleksandar Damjanović, officially stated that the Municipality of Budva had not fulfilled its obligation, although it had been warned.
"At its sessions held on 13 and 27 August 2020, the Government of Montenegro adopted Conclusions adopting the Information on Financial Support for Employees in the Municipality of Budva in order to temporarily resolve the problem of arrears of salaries of employees in the aforementioned municipality. Based on the above, a payment in the amount of 1.626.185,72 euros was made from the current budget reserve funds. Also, the Government Conclusion of 13 August 2020 defined that the procedure for the return of funds should be initiated, when the conditions for this are met. Accordingly, the Ministry of Finance, by letter... dated 9 October 2020, requested the Municipality of Budva to return the funds, i.e. that the Municipality of Budva make a payment in the amount of 1.626.185,72 euros to the main treasury account," they stated at the time in a written response.
However, although they announced at the time that they would initiate negotiations with the Municipality, new turbulent events followed in the tourism metropolis after the arrest in April 2023 of the then president. Milo Božović, which led to two election cycles in Budva.
Although Božović managed the city from prison until February 2025, there were still no negotiations between the government and the local administration to regulate the multi-million-dollar obligation.
The agreement specifies that WTE will receive 3,5 million
The Budva management boasted that the biggest problem the Municipality was facing had been resolved - lawsuits worth tens of millions of euros from the German company WTE and related companies, over the construction of a wastewater treatment plant in Bečići.
The President of the Municipality of Budva, Nikola Jovanović, announced a few days ago that the local government and WTE from Essen had concluded a Settlement Agreement before a notary, thus resolving their mutual disputes amicably and legally.
"The conclusion of the Settlement Agreement, in our opinion, represents a success for the community and the institution, fully protecting the interests of the Municipality, citizens, the property of the Municipality and ensuring legal certainty. We remind the public that today's conclusion of the Agreement was preceded by the Decision on the adoption of the draft settlement agreement in all existing and potential disputes, adopted at the session of the Budva Municipal Assembly on October 3, 2025. We emphasize that the Municipality of Budva hereby undertakes to make a payment of 3,5 million euros in four equal installments over two fiscal years. We especially note that the Municipality will fulfill its obligations in good faith and within the agreed deadlines, and after fulfilling the obligations from the Settlement Agreement, the disputes with WTE will be finally resolved."
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