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The Government of the Republic of Serbia

In the service of citizens

Three former directors arrested on breach of duty charge

Belgrade, 17 January 2006

The Serbian Ministry of Interior stated today that Tatijana Rakas, Branislav Andjelic and Dusan Djordjevic, all from Belgrade, have appeared before an investigating magistrate of the Belgrade District court on suspicion of committing breach of duty.

The statement said that Tatijana Rakas, in the capacity of an acting manager in the company Mobtel "Srbija" BK-PTT Beograd in the period July 5 – October 21, 2002, abused her position by approving 78 contracts concerning the purchase of company-owned apartments below their market level by Mobtel's employees. In this way, Rakas defrauded Mobtel by more than 820 million dinars.

The same charge was raised against Dusan Djordjevic, who was in the same capacity as Rakas. Tatijana Rakas also approved a contract, signed between Mobtel and the company Family Tours, on lease of motor vehicles at prices several times higher than those on the market, thus defrauding Mobtel by nearly 300 million dinars.

In the same capacity, Branislav Andjelic breached his duty by approving the signing of contract with the company Evropa osiguranje on renting office space, although he was aware of the fact that the said office space in 3 Prizrenska Street did not exist, thus defrauding Mobtel by approximately 70 million dinars.

Criminal charges have also been brought against general director of the company Evropa osiguranje Branko Krstonosic, on suspicion of complicity in violation of duty, the ministry statement reads.