Insider takes closer look at latest corruption affair

BELGRADE B92's Insider investigates the Azotara case - which started to unravel before the spring election campaign, and resulted in more arrests over the weekend. The investigative program will air a special episode at 21:00 CET on Tuesday, in a bid to shed some light into the case revolving around the Pancevo-based artificial fertilizer plant. Insider takes closer look at latest corruption affair Former Agriculture Minister Sasa Dragin was arrested on Saturday along with eight others, and was on Monday remanded in custody for one month. They are suspected of abusing their official position to illegally sell mineral fertilizers and incur damages worth EUR 4.5mn to the state budget. Insider will present the evidence its reporters collected that show that the list of those responsible for the bad situation in HIP Azotara is in fact "much longer", the program's authors announced. The authorities have so far investigated the wrongdoings related to the factory's privatization and trade in fertilizers produced there. However, Insider learned that the company also suffered when the state decided to allow it to dabble in wheat trade. Officials are now saying that once the original investigations had been completed, "the wheat part" will also be put on the agenda. In 2009, in the wake of its failed privatization, Azotara was taken over by the public natural gas enterprise Srbijagas. The following year the Serbian government, then headed by Mirko Cvetkovic, decided to turn this fertilizer producer into a wheat trader. According to what Insider learned, the factory was recording continuous losses in this business. Azotara was borrowing wheat from the State Reserves with an interest rate, and from the private company Victoria Group, this time, with no interest attached to the price tag. The plan was for Azotara to sell this wheat and in this way secure the funds necessary to once again launch its primary production. However, the factory ended up reselling wheat to Invej and Yu Point companies at a price lower than that at which it was borrowed. In an interview recorded during the time of the Cvetkovic cabinet, Srbijagas Director Dusan Bajatovic told Insider that the wheat business was in fact "good for Azotara": "Azotara produced its financial and production plan, calculated its expenses, calculated what it needed, took the wheat, realized in the market, and in line with the market possibilities organized production at the factory that brought us profit. And that's that." But Insider found out that both Invej and Yu Point, for unknown reasons, made additional payments at a later date, after paying the original sum. Invej, owned by Predrag "Peconi" Rankovic, thus agreed to pay an extra EUR 135,000. The following is an excerpt from the interview: B92: May I ask a simple question? Say you buy a pair of shoes that cost RSD 5,000. A year later, the shop assistant calls you to say, 'the price of our shoes has gone up in the meantime, could you please pay another RSD 1,000'. Would you go and pay more? Bajatovic: I would not. B92: I am trying to understand what motivated Invej (to do that). Bajatovic: Well, I'm telling you now, there was no need for that annex to the contract. B92: But that annex was signed on Azotara's demand. Bajatovic: So what. B92: Could you explain why Azotara was asking for a higher price at a later date? Bajatovic: Well we wanted to take more money, and they wanted to pay it. Now you want to ask me if someone took the Invej money as graft money? Is that what you're asking? I'm telling you - no, do not ask about that again. Insider is preparing its new series for next year that will focus on Serbia's controversial privatizations, that of HIP Azotara included. However, the program's authors decided to air this episode in the wake of the developments in the case over the weekend. (Tanjug) B92

Insider takes closer look at latest corruption affair

Former Agriculture Minister Saša Dragin was arrested on Saturday along with eight others, and was on Monday remanded in custody for one month. They are suspected of abusing their official position to illegally sell mineral fertilizers and incur damages worth EUR 4.5mn to the state budget.

Insider will present the evidence its reporters collected that show that the list of those responsible for the bad situation in HIP Azotara is in fact "much longer", the program's authors announced.

The authorities have so far investigated the wrongdoings related to the factory's privatization and trade in fertilizers produced there. However, Insider learned that the company also suffered when the state decided to allow it to dabble in wheat trade. Officials are now saying that once the original investigations had been completed, "the wheat part" will also be put on the agenda.

In 2009, in the wake of its failed privatization, Azotara was taken over by the public natural gas enterprise Srbijagas. The following year the Serbian government, then headed by Mirko Cvetković, decided to turn this fertilizer producer into a wheat trader.
According to what Insider learned, the factory was recording continuous losses in this business.

Azotara was borrowing wheat from the State Reserves with an interest rate, and from the private company Victoria Group, this time, with no interest attached to the price tag. The plan was for Azotara to sell this wheat and in this way secure the funds necessary to once again launch its primary production. However, the factory ended up reselling wheat to Invej and Yu Point companies at a price lower than that at which it was borrowed.

In an interview recorded during the time of the Cvetković cabinet, Srbijagas Director Dušan Bajatović told Insider that the wheat business was in fact "good for Azotara":

"Azotara produced its financial and production plan, calculated its expenses, calculated what it needed, took the wheat, realized in the market, and in line with the market possibilities organized production at the factory that brought us profit. And that's that."

But Insider found out that both Invej and Yu Point, for unknown reasons, made additional payments at a later date, after paying the original sum.

Invej, owned by Predrag "Peconi" Ranković, thus agreed to pay an extra EUR 135,000.

The following is an excerpt from the interview:

B92: May I ask a simple question? Say you buy a pair of shoes that cost RSD 5,000. A year later, the shop assistant calls you to say, 'the price of our shoes has gone up in the meantime, could you please pay another RSD 1,000'. Would you go and pay more?

Bajatović: I would not.

B92: I am trying to understand what motivated Invej (to do that).

Bajatović: Well, I'm telling you now, there was no need for that annex to the contract.

B92: But that annex was signed on Azotara's demand.

Bajatović: So what.

B92: Could you explain why Azotara was asking for a higher price at a later date?

Bajatović: Well we wanted to take more money, and they wanted to pay it. Now you want to ask me if someone took the Invej money as graft money? Is that what you're asking? I'm telling you - no, do not ask about that again.

Insider is preparing its new series for next year that will focus on Serbia's controversial privatizations, that of HIP Azotara included. However, the program's authors decided to air this episode in the wake of the developments in the case over the weekend.