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Documents reveal a secret deal between officials of Montenegro's ruling political party and indicted cocaine smuggler Darko Saric. The team did well but lost in the second round of qualifying play in mid-July. It is the only large tract of land near the beach remaining in Budva. The deal remained secret for three months, until the contract was mysteriously distributed as a flyer across Budva naming the new owners. Faced with public scrutiny, the director said the investors, a man from France and one from Switzerland, would present a design for the land in a few months. The deal is one of many in Montenegro that has linked business, government and organized crime in a tightly wound relationship. These unholy alliances have increasingly given Montenegro an international reputation as a criminal state. Mogren has had all it takes to be a successful club. It has loyal fans, is owned by the local municipality, is well-financed by local authorities, and its board was then headed by Rajko Kuljaca, who had always been a supportive mayor. In , the city said it would give the club a new home and a new stadium to replace the basic facility where the team played. In November of that year, local authorities decided to deed the football club nearly 80, square meters of land, the size of 11 standard football pitches, located in a remote area on the slopes of Dubovica Hill. The city also gave the club a far more valuable piece adjacent to their current stadium. Lazovic promised in local newspapers that the club would not sell their new and valuable public land. Following World War II, the Communist regime had confiscated the land and other assets of rich families. In March , Montenegro had passed a law allowing the return of unused land, and various families opened proceedings to get their land back. So far they have failed. But despite the decision, local authorities waited more than one year until January when Mayor Kuljaca and club director Lazovic signed a contract to make the transfer. Less than a month after the transfer, before the new land had even been officially registered in the name of the club, Lazovic signed a partnership deal with two companies: Nova Star CG and Amsone Enterprises Montenegro. Lazovic also threw into the deal an additional 8, square meters of adjacent beachfront land that was owned by the state. The contract does not provide details on how the club would get that additional public land, and appears to ignore the law requiring a public tender for the sale of public land. Amsone Enterprises Montenegro would administer the project, while Nova Star CG would pay for construction of a mixed residential and commercial complex on the land which would include two towers and a business center. It did not specify where the money would come from. But according to its financial reports, the company had no income or other sources of money and began piling up losses from day one. The first director of Novastar Investment CG, and the man Lazovic signed the contract with, was Bosko Krlovic, an employee whose usual job for the football club was mowing the grass. Novastar Investment CG was incorporated in Montenegro in March , three weeks after the deal was signed, listing road and highway construction as its primary business activity. Amsone Enterprises Montenegro is owned by a similarly named Cyprus company , which is in turn owned by Elisano Holdings Limited , a company incorporated in the British Virgin Islands, a secretive offshore jurisdiction often used to hide ownership. Montenegrin authorities did not release all records they had on the company. Both companies are registered in the US state of Delaware, another jurisdiction commonly used by criminals in the Balkans and Eastern Europe to hide their illegal proceeds. Nikomat LLC is jointly owned by Saric's sister, Danijela, and his childhood friend, close associate and best man, Nebojsa Jestrovic, who was indicted in Serbia in for being Saric's chief money launderer. Jestrovic is currently on trial. In late October , when the contract was leaked to the public, the families who had formerly owned the land expressed outrage. Budva officials said they knew nothing of the deal. Lazovic told the Montenegrin daily newspaper Vijesti on Oct. But the actual contract showed the club would not have any ownership of the new residential and business complex on the beach. That would be one quarter owned by Amsone Enterprises Montenegro and its secret owner and three-quarters owned by drug lord Saric. Lazovic never mentioned Saric, but claimed he couldn't remember the names of the investors at first, describing them as two men from France and Switzerland. He later changed the story to say it was a French-Swiss company. He did reveal one other detail: that the deal signed six months earlier was actually arranged in early That corresponds with the period when Saric started to pour his drug money into Montenegro, according to indictments in different countries. Another crisis that had nothing to do with global finance had also occurred. Just two weeks earlier, in early October , more than two tons of Saric's cocaine were seized near the Uruguayan coast on a luxury yacht. Saric evaded arrest despite months of surveillance by the police and was on the run for more than four years until his arrest in March Adriatic Overseas Holdings is an important company that ultimately connects Darko Saric, Serbian businessman Stanko Subotic and Milo Djukanovic, three people who were intimately tied together through First Bank and a series of real estate deals. For example, Adriatic Overseas Holdings took over the bankrupt San Investments, a company that Central Bank documents say is among a group of companies owned by Subotic, a controversial Serbian businessman and close friend of Djukanovic. The real ownership of Adriatic Overseas Holdings is unknown, but one man who knows the truth is the current Minister of Agriculture of Montenegro, Petar Ivanovic, a man close to the Prime Minister and a professor at his private university. He was also previously the director of the Montenegrin Investment and Promotion Agency where Radulovic also worked as his employee. Djukanovic has been closely associated with Ivanovic and the issue of foreign investment for years. The letter said Adriatic Overseas Holdings instructed them to send the documents to him, indicating Ivanovic is somehow related to the company. The power of attorney for Adriatic Overseas Holdings was in the name of Zorica Djukanovic it is not clear if she is related to the prime minister. The lawyer, like many people involved in the deal, is tied to both the Djukanovic family and Darko Saric. Zorica Djukanovic previously represented Aco Djukanovic, the brother of the prime minister, in a real-estate deal. There are other connections between Ivanovic and Saric. Montenegrin daily Dan revealed last year that Ivanovic traveled to France with Saric associate Loncar. Dan revealed records from the travel agency showing that the tickets for both men were bought at the same time and place by the same person and that Saric paid. Ivanovic told Dan he did not know Saric and said he sees no reason for further communication. In January , Montenegrin police seized documentation on the transfer of public land to the FC Mogren club and started an investigation of club officials. The prosecutor has not acted in more than three years on the case. In March , Lazovic announced, 'The foreign company gave up on the project because they couldn't find funding for the investment. The club registered the land in its name in but the project is still ongoing and the government approved the development last year. Meanwhile, the status of Adriatic Overseas Holdings in the contract is still not clear and all records are being held by the prosecutor. Who owns the development now and where the money will come from is, like so many things in Montenegro, also not clear. Along with Mogren fans, the other losers are the descendants of the original land owners. Said one:. If someone does not want to return assets then they will do everything make sure that does not happen. Montenegro: Football, Politics, and Cocaine Investigation. Related Articles. Serbian businessman Stanko Subotic has published a letter on e-novine. Montenegro is once again a smuggling hub for cigarettes bound for Italy. Plans to turn the ancient coastal town on Budva into a new Monte Carlo collapsed leaving taxpayers the ultimate bill. See the project. April 7th, The land was publicly owned and not his to give. He lied, and with a reason. Public Land in Private Hands. Plan For Relocation Of Stadium. Lazovic was true to his word that he would not sell the land. Instead, he gave it away. Plan For New Development. Krlovic refused to comment. Mixing Politics with Cocaine Money Novastar Investment CG was incorporated in Montenegro in March , three weeks after the deal was signed, listing road and highway construction as its primary business activity. Radulovic could not be reached for comment. Said one: 'Behind this are people who are connected through family and best friends. Join the fight. Hold power to account. Your cookie preferences. 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Half a ton of cocaine found in cargo hold of bulk carrier in Hamburg

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In police reports about arrests or crime-related deaths in the Western Balkans, the name of one small town in Montenegro often appears: Cetinje. Although Cetinje is not a hotspot of organized crime, as there is relatively little crime in the city, there is often a criminal connection to someone from Cetinje in news reports, such as the ones about the Pink Panthers, 1 the Montenegrin cocaine clan war 2 or, more recently, cannabis cultivation. Is it a coincidence, or are there certain factors that create vulnerability? Cetinje, with a population of around 14 people, is situated between the capital, Podgorica, and the towns of Budva and Kotor on the Adriatic coast. It is home to a historic monastery, which was at the centre of clashes in early September when angry crowds protested the inauguration of the new head of the Serbian Orthodox church. After the break-up of Yugoslavia, criminals from Cetinje were engaged in cigarette smuggling from Montenegro to Italy. This brought them into contact with traders in the Apulia region of Italy who were dealing in smuggled, counterfeit or stolen luxury goods like jewellery, sunglasses, footwear, clothes and cosmetics. Based on their good connections with their Italian counterparts, criminals from Cetinje became specialized in robbing boutiques, jewellery and appliance stores in Italy. At the beginning of the 21st century, criminals from Cetinje became active in the drug trade, particularly the smuggling of cocaine from Latin America to Western Europe. A number of people from Cetinje have been killed in the bloody feud, while others caught up in the clash of clans have been killed in the city. Recent arrests and lawsuits indicate that the pattern of criminality is continuing. The investigation shows that he was directly connected to the Colombian group Clan del Golfo. The Italian judiciary has been monitoring his activities since ; in June , they sentenced him to almost 18 years in prison for smuggling over two tonnes of cocaine from South America. Several factors may help explain the criminogenic nature of Cetinje. One is socio-economic vulnerability: with the disintegration of Yugoslavia, large factories closed and many workers lost their jobs. Young people and the unemployed left the city looking for opportunities in the capital, on the coast or abroad, and many were attracted to jobs in international shipping companies. Some young men went to Belgrade or Western Europe, where they became engaged in the criminal milieu, while others stayed in the area and engaged in the informal economy. One of the biggest employers in the city is the public sector and, as a result, public servants are dependent on whoever rules the city. On the one hand, such conditions can create a protection economy for illicit activities, as witnessed in the past with cigarette smuggling. On the other hand, corruption, one-party rule and lack of licit opportunities may act as push factors for migration, including for young men, who get involved in criminal activities. Experience suggests that networks of crime can be self-replicating. Where young people usually men grow up in an environment where their peers are engaged in illicit activity, they either copy their behaviour or join their groups. There is also an element of kinship: people from the same locality have a sense of common identity that may also carry over into criminal allegiances. Such patterns of behaviour are evident in some communities in the Western Balkans and may help to explain the situation in Cetinje. In July , police discovered the largest marijuana field in Montenegro to date — seven large plantations with nearly 3 marijuana stalks up to 2 metres in size in the Cetinje region. Ed Wight, Is this the end for the Pink Panthers? Despite the closure of the Balkan route, efforts are intensifying to stop migrant smuggling through Bosnia and Herzegovina. Risk Bulletins. Tap or select text, and then tap the bookmark icon to save a bookmark. Bookmarks are saved in your browser cache. Clearing your cache will remove them. Your last visit. The last time you visited, you stopped reading here. Gender and migration in the Western Balkans. What is SPAK? Acknowledgements About Risk Bulletins.

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