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The Government of the Republic of Serbia

In the service of citizens

National Security Council to coordinate state security organs

Belgrade, 12 January 2006

Serbian Minister of Justice Zoran Stojkovic said today that the newly-founded National Security Council will coordinate and supervise the work of state security organs.

Zoran Stojkovic

At a press conference following the government session, Stojkovic explained that the Council will also be in charge of all operating issues related to the cooperation with the Tribunal in The Hague.

Stojkovic pointed out that the government still holds to its promise to fight corruption and recalled it has adopted the documentation and regulations needed for this purpose.

"At the same time, the government is conducting a series of activities on suppressing corruption in all aspects of life," he stressed and added that Dejan Simic and Vladan Zagradjanin have been arrested today on suspicion of accepting and offering bribes.

Velimir Ilic

Serbian Minister of Capital Investment Velimir Ilic said that the government approved at its session today the decision reached yesterday by the managing board of the state telecommunication and postal company PTT Srbija on taking over accounts receivable worth €91.3 million from two Austrian banks – Reiffeisen Bank (€19.7 million) and Hypo Alpe-Adria Bank International (€71.6 million), by means of which PTT Srbija became the biggest creditor of the mobile telephone operator Mobtel.

Ilic said that by taking over accounts receivable, PTT Srbija also became entitled to all incidental rights envisaged in loan contracts, including security rights over all movable assets of Mobtel which triple the value of loans, reaching €270 million.

Ilic explained that in 2006, PTT Serbia will receive €90 million from the privatisation fund to be used for repayment of the loans, as well as sufficient operating capital for investments inside the company.

In this way, PTT Srbija automatically becomes the largest creditor of the company Mobtel "Srbija" BK-PTT Beograd, which is a matter of prime importance for the state, said Ilic and added that the government also adopted the Information on accelerating the process of issuing licence to a new mobile telephone operator.

The government is not trying to establish a monopoly; therefore it is in its interest as well to sell the licence to another operator as soon as possible, said Ilic. He added that a tender for a financial advisor for privatisation in the telecommunication sector is drawing to a close and expressed expectation that the advisor will be soon appointed.

Ilic also said that the decision of the Kosovo-Metohija government to switch off the repeaters of the 063 mobile telephone network in the province represents violation of both international and Serbian regulations in the telecommunication sector, and Kosovo-Metohija is an integral part of Serbia.

The minister said that the government and his ministry have done everything in their power to compensate the citizens in Kosovo-Metohija for the loss by distributing 5,000 free-of-charge mobile phone cards of the 064 mobile telephone network. If the interest arises, additional amount of free-of-charge cards will be distributed in the province, concluded Ilic.