World Student Games deal scrutinized

The 2009 World Student Games company has concluded a deal with Varteks, without prior announcement of a tender. The Ministry of Finance says that the law has been broken. World Student Games deal scrutinized Under the terms of the contract means, Varteks from Varazdin in Croatia becomes the exclusive distributor of clothing and footwear for competitors and Serb representatives at the Games, which will take place in Belgrade in two years time. The company claims that they are not subject to the Law on Public Purchase, while the Ministry of Sport says that the deal should be reassessed. Textile companies in Serbia are also unhappy about the contract. Serb representatives have already been seen walking around in Varteks kit this year, at the World Student games in Bangkok. At the upcoming Games in Belgrade, around 50,000 competitors and 14,000 volunteers are expected to be sporting Varteks clothing. At stake is a sponsorship deal worth EU 250,000, although the Croatian media estimates that Varteks could earn a further EUR 5mn. Although it’s a lucrative job, Games director Sinisa Jasnic concluded the deal without a prior tender. According to him, the company negotiated directly with Prvi Maj Pirot, and with foreign companies such as Adidas and Facis, though none were able to make as good an offer as Varteks. He claims he will use the sponsorship money – and not state funds - to manufacture the kits. "We are not a company that uses budget funds, we are not direct tax-payers," he says. "And when we do use state funds, we are obliged to announce a tender and to follow a complete legal procedure. So, I don’t see what the problem is here. Unless the problem is that we’re using a Croatian company," wondered Jasnic. The problem is not that a Croatian company is involved; what is a problem is that a company, whose founder was the state of Serbia, and whose administration and executive committee are staffed by the highest government representatives, did not announce a tender for such a big event and lucrative job. "As far as I know, as president of the executive committee and a member of the administrative board, everything has thus far been in accordance with the law, but it will do no harm to check everything once more," says Deputy Sports Minister Aleksandar Sostar.

World Student Games deal scrutinized

Under the terms of the contract means, Varteks from Varaždin in Croatia becomes the exclusive distributor of clothing and footwear for competitors and Serb representatives at the Games, which will take place in Belgrade in two years time.

The company claims that they are not subject to the Law on Public Purchase, while the Ministry of Sport says that the deal should be reassessed. Textile companies in Serbia are also unhappy about the contract.

Serb representatives have already been seen walking around in Varteks kit this year, at the World Student games in Bangkok. At the upcoming Games in Belgrade, around 50,000 competitors and 14,000 volunteers are expected to be sporting Varteks clothing.

At stake is a sponsorship deal worth EU 250,000, although the Croatian media estimates that Varteks could earn a further EUR 5mn.

Although it’s a lucrative job, Games director Siniša Jasnić concluded the deal without a prior tender. According to him, the company negotiated directly with Prvi Maj Pirot, and with foreign companies such as Adidas and Facis, though none were able to make as good an offer as Varteks.

He claims he will use the sponsorship money – and not state funds - to manufacture the kits. "We are not a company that uses budget funds, we are not direct tax-payers," he says.

"And when we do use state funds, we are obliged to announce a tender and to follow a complete legal procedure. So, I don’t see what the problem is here. Unless the problem is that we’re using a Croatian company," wondered Jasnić.

The problem is not that a Croatian company is involved; what is a problem is that a company, whose founder was the state of Serbia, and whose administration and executive committee are staffed by the highest government representatives, did not announce a tender for such a big event and lucrative job.

"As far as I know, as president of the executive committee and a member of the administrative board, everything has thus far been in accordance with the law, but it will do no harm to check everything once more," says Deputy Sports Minister Aleksandar Šoštar.