Nine arrested in Galenika corruption case

Nine arrested in Galenika corruption case

Interior Minister Nebojša Stefanović confirmed the arrests earlier and added that "the public can expect the investigation to show where money from the public enterprise was flowing away."

“The investigation will be carried through and we will see where the money went as it is not enough to prosecute those responsible for the criminal offense, but we also must find out where the embezzled money is right now,” Stefanović told a news conference in Belgrade, Tanjug reported.

He said that the detained persons are charged with enabling Velefarm, a drugs and medical devices wholesaler, to obtain a loan totaling EUR 2.246 million, which Velefarm could not pay back and Galenika took on the obligation instead.

The minister added that Galenika sent Velefarm, which is a joint stock company, a large quantity of drugs for which Velefarm issued promissory notes as a means of payment, although it was known at the time that the wholesaler would file for bankruptcy and that the notes would not be able to be charged.

Stefanović said that this investigation is part of a set to investigate 24 controversial privatizations in the country, stressing that the entire operation has so far resulted in 135 arrests, and indictments have been confirmed for all these individuals, "a sign of good police work."

The group that has been placed under arrests is suspected of abusing the position of responsible persons and causing losses of about EUR 75 million to Galenika, a pharmaceutical public enterprise.

The arrestees include former Galenika general manager Nenad Ognjanović (60), Galenika Chairman of the Board Dejan Backović (39), Assistant General Manager for Economic Affairs at Galenika Dragan Sebrek (56) and former CEO and Chairman of the Board at Velefarm, formerly Serbia's biggest drugs wholesaler, Dragoljub Vučićević (66).

Also arrested were Marketing Manager at Velefarm Rade Lazarević (45), General Manager and authorized person to represent the company, which has been in bankruptcy since 2012, Momir Vuković (64), head of Velefarm financial management department Ljubica Kapor (58) and Velefarm Accounting Manager Tatjana Vučetić (57).

The suspects allegedly caused losses of about EUR 75 million to Galenika from November 2008 through 2012 to provide financial gain to legal entities from Belgrade operating within Velefarm Holding and to Dragoljub Vučićević.

There are reasonable grounds to believe that in this period, Galenika delivered about EUR 75 million worth of products to Velefarm, and promissory notes were issued as collateral for payment, Tanjug reported.

When due and payable, these notes were charged against Galenika's account by order of the suspects Ognjenović and Sebrek.