Energy minister reacts to Kolubara revelations

If politicians took part in abuses of state money at the Kolubara mines, then they should be held to account "politically and criminally". This was the reaction of Energy Minister Petar Skundric to revelations that Serbia's state-owned power company EPS determined that the Kolubara Coal Mine company management conducted "unscrupulous business practices". Energy minister reacts to Kolubara revelations The revelations first came to light in TV B92's investigative program Insajder (Insider). Skundric said that "everyone who broke the law and ethical norms should carry their part of the responsibility". He added that as soon as he discovered that there was suspicion "more equipment was engaged than was necessary" - and this happened as he reviewed business plans of public companies - he asked for "facts to be determined". Skundric went on to say that there was agreement with the company's management and director to "implement all measures" in order to use Kolubara's existing resources in the best way. "We have almost ten times less instances of engagement of machinery from outside of Kolubara," said the minister. According to him, it is now up to EPS to determine if management of the mines was involved, and also the level of their responsibility, while the authorities should find out if there were abuses, and sanction them. Asked if others beside EPS, "such as the police", were working on the case, Skundric said: "The authorities are certainly doing their job." At the heart of the Kolubara controversy is the fact that this public company, which is a part of EPS, paid more than EUR 130mn over the last eight years to private companies. The companies provided machinery that the mines did not have, but calculations show that Kolubara could have purchased new machines instead of pouring the state money into private pockets. The private companies in question, Insajder revealed, were mostly privileged individuals who used political ties and friendships to win contracts. A constant growth in expenses tied to these contracts until this point never caught the eye of those responsible, because Kolubara's business practices were not subject to checks or reviews. Petar Skundric (Beta, file)

Energy minister reacts to Kolubara revelations

The revelations first came to light in TV B92's investigative program Insajder (Insider).

Škundrić said that "everyone who broke the law and ethical norms should carry their part of the responsibility".

He added that as soon as he discovered that there was suspicion "more equipment was engaged than was necessary" - and this happened as he reviewed business plans of public companies - he asked for "facts to be determined".

Škundrić went on to say that there was agreement with the company's management and director to "implement all measures" in order to use Kolubara's existing resources in the best way.

"We have almost ten times less instances of engagement of machinery from outside of Kolubara," said the minister.

According to him, it is now up to EPS to determine if management of the mines was involved, and also the level of their responsibility, while the authorities should find out if there were abuses, and sanction them.

Asked if others beside EPS, "such as the police", were working on the case, Škundrić said: "The authorities are certainly doing their job."

At the heart of the Kolubara controversy is the fact that this public company, which is a part of EPS, paid more than EUR 130mn over the last eight years to private companies.

The companies provided machinery that the mines did not have, but calculations show that Kolubara could have purchased new machines instead of pouring the state money into private pockets.

The private companies in question, Insajder revealed, were mostly privileged individuals who used political ties and friendships to win contracts.

A constant growth in expenses tied to these contracts until this point never caught the eye of those responsible, because Kolubara's business practices were not subject to checks or reviews.