State-Owned, Party-Controlled: Inside the Ruling Majority's Enterprise Network

The ruling parties have divided the spoils of power and appointed their people to most public companies, where the number of employees is growing at an alarming rate. Even managers who generate losses are handsomely rewarded. Most companies operate without transparency, while the new leadership directs generous donations to the Serbian Orthodox Church.

Predrag Nikolić

Montenegro has 178 public companies—123 municipal and 55 state-owned. These companies employ over 22,000 people, 8,403 of whom work in municipal enterprises and 13,702 in state-owned ones.

Of the 55 state-owned enterprises, the majority, 39, operated profitably in 2023, generating a combined profit of €146 million. However, a significant portion of this amount is attributed to the strong performance of the Electric Power Company of Montenegro (EPCG) and its affiliated companies. In contrast, 15 state-owned enterprises reported losses, totaling €22.8 million.

The Institute Alternative collects and regularly updates this data through its My Money platform.

The highest salary among state-owned enterprise officials is earned by Milutin Đukanović, a senior official of the New Serbian Democracy (NSD) and President of the EPCG Board of Directors, who receives €4,611 monthly. He is followed by Boris Raonić, director of the public broadcaster RTCG, with an average monthly salary of €3,966 in the past year. Although RTCG is funded from the state budget, it is not among the loss-making companies. Raonić's salary—despite his appointment being ruled unlawful by the courts—was later reduced to €3,400 following public backlash and was maintained after his reappointment.

Another NSD official, Igor Čađenović, is the director of the state-owned company Plantaže 13. jul also ranks among the highest-paid. Despite the company recording a loss of over €6 million in 2023—the largest among state enterprises—Čađenović earned an average monthly salary of €3,961. His asset declarations show that his income was even higher in some months; in September 2023, for example, he reported earnings of €4,145.

BLACK LIST

Plantaže 13. jul, once a successful and well-known Montenegrin enterprise, was driven to the brink of collapse under the long-standing administration of the Democratic Party of Socialists (DPS), led by Veselin Vukotić and Verica Maraš. In September of this year, the Higher Court in Podgorica confirmed the indictment filed by the Special State Prosecutor's Office against Vukotić and Maraš on suspicion of committing the criminal offense of abuse of office in business operations. Following the political changes in 2020, efforts to restructure and stabilize this once-prominent brand and major exporter began.

In 2021, the company faced a debt of €20 million. In October of that year, Dr. Zoran Miladinović was appointed executive director of Plantaže. By the time he resigned in November 2022, the debt had been reduced to €13 million. Following his departure, Igor Čađenović took over the position and managed to reduce last year's deficit, which stood at €6 million. Despite ongoing losses, the company increased its workforce in 2023 by 14 employees, bringing the total number to 637.

Economist Igor Čađenović, who was previously Director of Marketing and Sales at Plantaže, signed the resignation of former director Miladinović at the beginning of this year. Additionally, Alternative Montenegro filed a criminal complaint against Čađenović due to a well-founded suspicion that he forged a diploma.

The second-largest loss among state-owned companies is Željezara Nikšić, which was registered as a company in February 2023 and is fully owned by EPCG. The company reported a loss of €3.5 million last year and employs 252 people. The executive director, Nevenka Janković, has no publicly available property record, making her earnings as executive director unclear. Janković, appointed to the position at the end of last year, is entitled to a monthly salary of €2,000, with potential increases for prior work experience, and boasts 21 years of experience in this company. After Željezara was leased to the Swiss company 8B Capital SA at the end of September, traffic engineer Miloš Nikolić was appointed acting executive director.

The Dr. Simo Milošević Institute ranks third on the list of losses, reporting a deficit of €2.8 million. The number of employees has decreased from 642 in 2002 to 573 in 2023. Similarly, the company's debt has been reduced, from €8 million in 2019 to €2.8 million last year.

At the end of last year, Dr. Zoran Kovačević, a professor at the Maritime Faculty in Kotor, was appointed executive director of the Institute. He previously held the same position from 2012 to 2015, and later served as a councilor and President of the DPS Councilors' Club in the Assembly of Herceg Novi. Information regarding his salary is not publicly available, nor is the compensation paid to Predrag Dragojlović from Belgrade, who became President of the Institute's Board of Directors in January of this year, representing the Investment and Development Fund of Montenegro (IRF). However, it is known that the compensation for members of the Board of Directors amounts to €417.

At the end of September, a celebration was held at the Nikšić Theater to mark the third anniversary of Solar Construction (Solar gradnja), a subsidiary of EPCG.

"Solar Construction is a company with a promising future, one of the few state-owned enterprises that is genuinely operational, profitable, and of immeasurable importance for the development of Montenegro's energy sector," Milutin Đukanović, President of the Board of Directors of the Electric Power Company, said.

In addition to its marketing efforts, the company concluded last year with a loss of €2.7 million, compared to a €2.2 million loss in 2022 and a loss of €55,202 in 2021, the year of its establishment. The number of employees has also grown significantly, starting with just one employee in 2021, increasing to 319 in 2022, and reaching 420 last year. In a statement made in August, the dismissed executive director, Valerija Savić, confirmed that salaries within the company are above average:

"The average monthly wage expenditure at EPCG SG during my tenure as its head was approximately €480,000."

Saveljić, a member of the URA, has served as the executive director of Solar Construction since November last year, with a salary of €3,371.

After her dismissal in August, Minister Saša Mujović stated that the Board of Directors of EPCG Solar Construction had removed her without justifying, calling it a "politically motivated dismissal."

However, this week, Mujović offered a different perspective on her performance. The minister explained that Saveljić had falsified business results: "Despite having access to the information, the ministry was not informed that it had received a negative internal audit report. This report revealed that some invoices, which had been shown to produce a profit of over €600,000, were deemed unacceptable and uncollectible by internal audit. Saveljić presented these results to the ministry as being highly positive, but the reality is that she left the company with a debt of €346,000."

Saveljić denied these allegations, asserting that she was performing well and accusing NSD officials Milutin Đukanović and Marina Jočić of using Mujović's statements as a cover for their actions.

In March of this year, the Board of Directors of EPCG appointed a new board for its subsidiary, Solar Gradnja. The board is chaired by Marina Jočić, a member of the New Serbian Democracy, with Miroslav Doderović (Democrats), Ahmet Đonbaljaj (Albanian Alternative), Veljko Vasiljević, Zoran Čolaković (Democratic People's Party), Neđeljko Lekić, and Igor Vlahović serving as board members.

Marina Jočić, the President of the Board, is a longtime Mandić party official. Following the change of Government on August 30, 2020, she took on leadership roles in several public companies across various sectors, including nature protection, culture, and energy production. For instance, she served as the President of the Board of Directors of National Parks and PI Museums and Galleries in Podgorica and is currently leading EPCG Solar Construction.

Jočić is not the only member of her family employed at Solar Construction. Her daughter, Iva Čukić Šoškić, was the head of the PR department until she was dismissed by Saveljić, who claimed the dismissal was due to non-compliance with work obligations. Following her dismissal, Čukić Šoškić was reassigned to a lower position.

Before her dismissal, Saveljić also terminated the business and technical cooperation agreement with Kaldera, a company linked to Republika Srpska President Milorad Dodik, also on the U.S. sanctions list.

Montenegro's railway infrastructure reported a loss of €2.5 million last year. The number of employees increased from 779 in 2022 to 817 during the year. Marina Bošković, who was appointed executive director in March 2021, receives a salary of €1,700. Bošković is the cousin of Milan Knežević, the leader of the Democratic People's Party (DNP).

Jelena Kljajević, appointed President of the board of directors of this company by the Government in March, is affiliated with the same party. Kljajević previously served as the President of the Democratic People's Party's Municipal Committee in Bijelo Polje and as the director of National Parks. She was dismissed from that position at the end of 2021. According to the Government's explanation, her dismissal was due to a negative assessment of the legality of her actions and business results, and the blocking of the company's account due to questionable operations. Despite this, she continued to advance in her career and hold state positions.

Kljajević receives a € 598 bonus for chairing the Board of Directors at Railway Infrastructure and an additional €1,000 for her work at the state-owned company Budvanska Rivijera.

Another railway company on the list of losses is Maintenance of Railway Rolling Stock JSC Podgorica, which employs 189 people and has been incurring increasing losses year after year—€500,000 in 2021, €873,000 in 2022, and €908,000 last year.

At the end of February this year, Goran Đurković was appointed executive director, earning a salary of €1,386. His predecessor, Dragana Lukšić, was appointed assistant minister of transport for railway transport.

The Government also recently appointed a predominantly party-affiliated Board of Directors for this company, including Predrag Burzanović (NSD), Tom Đonaj (AA), Bojan Babić (Workers' Party), Radovan Mujović as an expert, and Igor Racković representing minority shareholders.

The chairman of the Board, Predrag Burzanović, receives compensation of €632. He is the principal of the "Marko Miljanov" elementary school, a physical education professor, and holds a master's degree in political science and international relations. Burzanović first gained public attention in early 2022 for insulting MP Draginja Vuksanović, later claiming to have "repented in a way" after the backlash.

Montecargo JSC Podgorica, which specializes in cargo transport for both international and domestic rail, also faces financial struggles. With 321 employees, the company posted a loss of €10 million in 2022, which was reduced to €602,000 in 2023. Executive director Dušanka Dragojević receives a salary of €1,783, while the chairman of the Board, Miroslav Brajović, is compensated €789. Brajović, an NSD official, not only chairs Montecargo but also serves as an advisor to the director of Railway Transport of Montenegro.

The Innovation Fund of Montenegro, which operated with a positive zero last year, is no longer on the list of state-owned enterprise losers. Founded by the Government in June 2021, its mission is to foster collaboration between the scientific and economic sectors. With only eight employees, the Fund incurred a €20,000 loss in its founding year, reducing the deficit to just €1 in 2022.

The Fund's Executive Director is Bojana Femić Radosavović, earning €1,679 per month. The President of the Board, Vasilije Čarapić, a senior official of the Europe Now Movement, receives compensation of €712. According to Čarapić's property record from March of this year, as a counselor in the Assembly of the Capital, he also received a monthly allowance of €150 to €200, and a parliamentary salary of €1,629. This year, his salary in the Assembly increased to €2,000.

WHITE LIST

Out of the total €146.8 million in state-owned enterprise revenues last year, more than €104 million came from the operations of Elektroprivreda and its affiliated companies — including €52 million from EPCG, €35.7 million from the Electric Transmission System of Montenegro, €15 million from the Pljevlja Coal Mine, and €2 million from the Montenegrin Electric Distribution System (CEDIS).

In February of this year, Ivan Bulatović was appointed Executive Director of EPCG. While his exact salary has not yet been disclosed, his employment contract stipulates that he is entitled to a wage three times the company's average. He succeeded Nikola Rovčanin, a member of the Main Board of the Democrats, whose monthly salary was €3,741. Bulatović has been part of the system for a considerable time, having served as the Director of CEDIS since 2016.

Compared to 2020, when EPCG had 961 employees, the number rose to 1,124 last year, an increase of 15 percent. The company's business performance tends to fluctuate and is often influenced by external factors beyond its control, such as international energy prices, weather conditions, and similar variables.

In 2020, while the DPS still controlled state-owned land and enterprises, EPCG recorded a net profit of €16 million. After the change in Government in 2021, profits rose to €47.5 million. However, in 2022, it dropped significantly to €3.9 million. Last year, EPCG achieved a record net profit of €52 million.

The net business results of the Pljevlja Coal Mine have also shown fluctuations — €13 million in 2020, dropping to €4.4 million in 2021, then rising to €9.4 million in 2022, and reaching €15 million last year. The number of employees also increased, from 691 in 2020 to 1,168 in 2023 — almost 50 percent.

Milan Lekić, head of Pljevlja's branch of New Serbian Democracy (NSD), served as the company's Executive Director, earning a monthly salary of €3,295. He later became President of the Board of Directors of Pljevlja's largest company, a position he held until recently.

Since the beginning of last year, the Montenegrin Prosecutor's Office has been investigating allegations that former Coal Mine Director Milan Lekić signed a damaging contract with Electric Power Company of Srbija in May 2022, allegedly selling coal at prices significantly below market value.

In October last year, Milan Lekić was involved in a traffic accident while driving an official vehicle under the influence of alcohol, not for the first time. Following the incident, he resigned.

Much like the situation in the energy sector, the new ruling majority has extended its influence over other state-owned enterprises by appointing its people.

In March of this year, the Government appointed Aleksandar Dožić, a Democratic People's Party official, President of the Monteput Board of Directors. He receives a monthly salary of €1,850.

The national airline company To Montenegro, founded in 2021, has a President of the Board of Directors named Tihomir Dragaš. He is a member of the Presidency of the Europe Now Movement (PES). His salary has not been disclosed.

Mladen Mikijelj, elected President of the Municipal Board of NSD Budva in May this year, currently leads the Public Enterprise for the Management of Marine Assets (Morsko dobro). He receives a salary of €3,200. In the year he assumed the role, the company recorded a modest net profit of €29,000, but last year that figure rose sharply to a €2.3 million surplus. Between 2022 and 2023, the number of employees grew by 42, bringing the total to 102.

Vladimir Čađenović, a member of the Democrats' presidency, was appointed President of the Board of Directors of CEDIS in March of this year. He had previously served as the company's Executive Director, during which time his salary exceeded €3,000. Although his current compensation is unknown, under his leadership, CEDIS — a company majority-owned by EPCG — reduced its losses from €11.7 million in 2022 to a €400,000 profit last year. At the same time, the number of employees rose by about 20 percent, from 1,428 in 2021 to 1,721 in 2023.

Jovica Gregović, head of the Budva branch of the Democratic People's Party (DNP), has served as Executive Director of the Hotel Group Budvanska Riviera since July 2021. Mijomir Pejović, President of the Municipal Board of the Democrats in Budva, holds the position of President of the Board of Directors of the same company. Gregović earns a salary of €3,784, while Pejović receives €3,164. After recording a loss of more than €9 million in 2020, the company ended last year with a profit of €1.9 million. The workforce also grew from 412 employees in 2022 to 595 in 2023.

Zoran Lakušić, a DNP official, is President of the Board of Directors of the Regional Water Supply Company for the Montenegrin Coast, with a salary of €3,471, higher than that of Executive Director Borislav Ivković, who earns €3,094.

In March of this year, Dušan Masoničić, a member of the Democrats, was unanimously elected President of the Board of Directors of Luka Bar. His party colleague, Nikola Plamenac, is Executive Director of "Sveti Stefan Hotels," which owns the city hotel Sveti Stefan and Villa Miločer. The President of the Board of Directors is Milica Kažanegra, a member of the Socialist People's Party (SPP).

Đuro Milošević, affiliated with the SPP, is the Executive Director of Ski Resorts of Montenegro. After ending 2021 with a loss of €200,000, the company operated at a profit of the same amount in 2023.

Slađana Adžić Džaković, a Democrat councilor from Plužine, was appointed President of the Montenegro Bonus Board of Directors.

The Montenegrin Electricity Market Operator in Podgorica has been aligned with the Bosniak Party. The Executive Director is Mersudin Gredić, a member of the party's presidency, while his colleague Nermin Škretović from Bar serves as President of the Board of Directors.

In March of this year, the Shareholders' Assembly appointed several new members to the Board of Directors of Railway Transport of Montenegro (ŽPCG): Tripko Draganić (NSD), Željko Miladinović (DPP), Dejan Konatar (Democrats), Pavlo Popović (expert member), and Marko Bertanjolik (minority shareholder). Draganić, notably, holds a PhD in religious tourism—the first in the region—and is also a published poet and cultural advocate. He co-founded the Institute for Serbian Culture in Nikšić and NGOs such as "Vladika Sava Kosanović" and "Nikola Tesla."

The post of Montenegro illustrates another example of the intertwining of party and public functions. Dragan Tufegdžić, former Executive Director of the Post and President of the Democrats' Bar Municipal Committee, resigned from party positions in June 2023 but remained a member. His successor in both roles is Josip Đurašković, also from Bar. Earlier this year, Tufegdžić was appointed Montenegro's ambassador to Slovenia.

The current President of the Board of Directors of the Post of Montenegro is SPP member Igor Bulatović. The company's employees grew from 988 in 2020 to 1,189 in 2023. Financially, the company posted a net profit of €842,000 in 2020, which dropped to just €126,000 last year.

Donations Primarily Directed Towards Sports and the Serbian Orthodox Church

Although state-owned enterprises are required to transparently disclose information about their sponsorships, donations, and gifts, only a few do so consistently.

One of the exceptions is Marine Assets (Morsko Dobro), which allocates significant sums for donations each year and ensures transparency in its reporting. In 2023, this company allocated €273,000 in donations, with the most going to sports clubs. FC Petrovac received €40,000, while YFC Grbalj and the Water Polo and Swimming Association of Montenegro each received €20,000. Additionally, €10,000 was donated to FC Otrant and the Volleyball Association of Montenegro. The same amount was given to the Monastery of St. Archangel Michael on Prevlaka. At the same time, the Eparchy of Budimlja and Nikšić received €3,000, the Monastery in Kosierevo €2,500, and the Franciscan Monastery in Petrovac €7,967.

Donations for 2023 are not publicly available on CEDIS's website. However, in 2022, the company allocated €187,000 in donations. The most considerable sums — €30,000 — went to the Water Polo and Swimming Association, followed by €25,000 for the Clinical Center of Montenegro (KCCG) and €10,000 to the Faculty of Electrical Engineering. CEDIS also donated to religious buildings affiliated with the Serbian Orthodox Church (SOC). These included €1,500 to the Duga-Bioče Monastery, €4,990 to the Duljevo Monastery, €2,500 to the Ćelija Piperska Monastery, €1,000 to the Apostolic Vicariate of Herzegovina, €1,000 to the Church Board of St. Nicholas, €700 to the Church Board of Vaso's Church Nožica, and €4,000 to the Montenegrin Coastal Metropolia.

Other state-owned enterprises have similarly directed their sponsorships primarily to religious buildings of the Serbian Orthodox Church and organizations associated with the community. Last year, the Regional Water Supply allocated €11,280 in donations, ranging from €100 to €300. Individual recipients included the Dujevo Monastery, St. George's Monastery, Kolašin Parish, and the St. Michael's Choir in Budva, each receiving €200.

A similar practice is followed by Ski Resorts of Montenegro, where donations ranging from €100 to €300 totaled €12,000 in 2022. Among the recipients was the Brotherhood of Orthodox Youth "Sveti Dimitrije," which received €300.

The Radio Diffusion Center (RDC) allocated €12,200 for sponsorships in 2023, supporting school associations, schools, and non-governmental organizations with donations ranging from €100 to €400. The largest individual donation of €850 went to the Eparchy of Budimlja and Nikšić — the Church Board in Župa Nikšićka, followed by €450 for the Construction Committee for the Serbian Orthodox Church.

The Innovation and Entrepreneurship Center "Tehnopolis" LLC, Nikšić, distributed €2,330 in donations in the past year. The Nikšić Theater received the largest donation of €500, while the NGO Charitable Foundation of the Metropolis of Montenegro and Littoral received €300.