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The Government of the Republic of Serbia

In the service of citizens

Fighting corruption calls for national consensus

Belgrade, 15 July 2004

President of the Anti-Corruption Council Verica Barac said that the case of Sartid is one of the gravest examples of corruption in Serbia.

Barac presented a report on privatisation of Sartid. She said that the Council wanted to see the course of Sartid’s privatisation, as well as who took part in it, and what was the connection between the executive and legal authorities. On the other hand, the Council wanted to initiate the talks in the judiciary with a view of overcoming the problem of corruption.

Barac reminded that Sartid was sold as legal entity. The steel plant with five subsidiaries was sold as one company, she said. The whole affair was a complete feigned process which is allegedly called bankruptcy, Barac said, adding that there was no protection of company’s property in the bankruptcy procedure.

According to her, the Council suggested that this report is submitted to all commercial courts in the Republic as an example what must not be done in the judiciary, as it denies all basic judicial principles, including the very idea of justice. Barac said that the Council is particularly struck by the fact that all judges participating in the Sartid case soon got promoted.

She said that the case of Sartid is crucial for realizing the issue of responsibility, both judicial and executive, and stressed that there is enough evidence against the ministers and judges in the process of privatisation of this company.

The Council will keep on insisting that this case is resolved as this is an international scandal since it includes foreign creditors. Those cases are organised before international courts of arbitration, which generally induces great material and moral damage inflicted to our state, Barac said.

She said that the Council observed the work of Privatisation Agency in the previous period and noticed many irregularities pointing to corruption. There are indications of linked persons who were the decision-makers both on the side of the state and consultants, she said, reminding that the Council had pointed to these irregularities.

According to her, consultancies and decision-makers in the Agency and the Ministry were often linked. Former Privatisation Agency director Mirko Cvetkovic was also the executive director of Ces Mekon consultancy, Barac said, adding that over €30 million were given for consultancy services, half of which was from the budget.

Barac said that there is no national consensus in the fight against corruption and that democratic institutions cannot be built with such level of corruption.