Report: Documents tarnish Montenegro's EU bid

A BBC and Organized Crime and Corruption Reporting Project (OCCRP) investigation has shown that Montenegro’s EU integration is uncertain. The BBC and OCCRP claim that the country’s EU integration process is uncertain due to ties between former Montenegrin Prime Minister Milo Djukanovic’s Prva banka with drug lord Darko Saric. Report: Documents tarnish Montenegro's EU bid An audit by accountants Price Waterhouse, carried out in 2010, raised questions about the running of the country's Prva Banka, or "First Bank", which is controlled by the Djukanovic family. The audit suggests that most of the money deposited at the bank came from public funds, while two thirds of the loans it made went to the Djukanovics and their close associates. “The BBC and OCCRP’s research has uncovered documents which cast serious doubt on plans for the tiny Balkan nation of Montenegro to join the European Union. Montenegro is an official candidate to join the EU and accession talks begin next month. This is despite concerns about allegations of political and financial corruption, which have led to the country being described as a ‘mafia state’ - a claim which is forcibly rejected by the Montenegrin government,” BBC writes. Miranda Petrucic, a Sarajevo-based investigator for the OCCRP, told the BBC that the Djukanovics and their associates "treated the bank like an ATM machine. A wonderful source of cash." In 2009, Price Waterhouse Coopers were contracted to audit Prva Banka. The draft report was never published but the BBC has seen the document. “It looked at the biggest loans and found that most were made to groups linked to the Djukanovics, and people linked to them,” writes BBC. The research by OCCRP has shown that they included companies connected with Stanko Subotic, who was also indicted by the Italian anti-mafia unit, and Darko Saric, who is a convicted drug smuggler, now on the run, BBC added. “Djukanovic, who is still president of the country's ruling party, was investigated by the Italian anti-mafia unit and faced charges over a billion-dollar cigarette smuggling operation based in Montenegro. Those charges were eventually dropped in 2009. As head of state, Djukanovic had diplomatic immunity,” reads the report. BBC added that the influential American publication, Foreign Affairs, described Montenegro as a "mafia state" earlier this year. The journalists have also revealed Djukanovic’s ties with controversial businessman Branislav Brana Micunovic. Prva Banka approved Micunovic’s wife Svetlana an overdraft worth EUR 4.6mn without any written document or analyses that showed that the money will be paid back. The BBC approached Djukanovic and Prva Bank to respond to the allegations against them, but neither has replied. BBC Vijesti

Report: Documents tarnish Montenegro's EU bid

An audit by accountants Price Waterhouse, carried out in 2010, raised questions about the running of the country's Prva Banka, or "First Bank", which is controlled by the Djukanović family. The audit suggests that most of the money deposited at the bank came from public funds, while two thirds of the loans it made went to the Djukanovićs and their close associates.

“The BBC and OCCRP’s research has uncovered documents which cast serious doubt on plans for the tiny Balkan nation of Montenegro to join the European Union. Montenegro is an official candidate to join the EU and accession talks begin next month. This is despite concerns about allegations of political and financial corruption, which have led to the country being described as a ‘mafia state’ - a claim which is forcibly rejected by the Montenegrin government,” BBC writes.

Miranda Petručić, a Sarajevo-based investigator for the OCCRP, told the BBC that the Djukanovics and their associates "treated the bank like an ATM machine. A wonderful source of cash."

In 2009, Price Waterhouse Coopers were contracted to audit Prva Banka. The draft report was never published but the BBC has seen the document.

“It looked at the biggest loans and found that most were made to groups linked to the Djukanovićs, and people linked to them,” writes BBC.

The research by OCCRP has shown that they included companies connected with Stanko Subotić, who was also indicted by the Italian anti-mafia unit, and Darko Šarić, who is a convicted drug smuggler, now on the run, BBC added.

“Đukanović, who is still president of the country's ruling party, was investigated by the Italian anti-mafia unit and faced charges over a billion-dollar cigarette smuggling operation based in Montenegro. Those charges were eventually dropped in 2009. As head of state, Đukanović had diplomatic immunity,” reads the report.

BBC added that the influential American publication, Foreign Affairs, described Montenegro as a "mafia state" earlier this year.

The journalists have also revealed Đukanović’s ties with controversial businessman Branislav Brana Mićunović.

Prva Banka approved Mićunović’s wife Svetlana an overdraft worth EUR 4.6mn without any written document or analyses that showed that the money will be paid back.

The BBC approached Đukanović and Prva Bank to respond to the allegations against them, but neither has replied.