Tuesday, September 29, 2015

Police to launch Montenegro Airlines investigation

Montenegro Airlines to be investigated over multi million euro cover up

Police will launch an investigation into Montenegro Airlines' business over the alleged cover up of millions of euros in unreported losses. According to the "Dan" daily, investigators from the corporate crime unit will review several financial reports, which the carrier's previous management is believed to have modified in order to present better results. Zoran Djurišić, who was at the helm of the company for nineteen years, resigned on November 28, 2013 after he was dismissed as CEO in July that same year. In 2014, Montenegro Airlines’ new management, headed by Daliborka Pejović, alarmed authorities of creative accounting which took place at the airline in the past, noting that some sixteen million euros in losses were covered up in 2012 alone.

Montenegro Airlines falsified financial reports for several years leading up to the summer of 2013. No one has been held accountable, nor questioned in relation to these claims until now. In 2012, the carrier reported a net loss of 19 million euros, while independent auditors later found its actual loss amounted to 35.3 million euros. The carrier is yet to publish its 2014 financial report, however, Ms Pejović said the airline recorded a net loss of 9.5 million euros, while its losses for the first six months of this year totalled 6.5 million. In addition, its accumulated debt stands at 71.5 million euros. "It is important to note that all our financial reports are now genuine, balanced and objective", the CEO said recently. The investigation comes following a dramatic month at the airline which saw five pilots quit their job and the carrier's Executive Director resign following thirteen years at the carrier.

Montenegro Airlines falsified its financial reports for several years by showing conflicting and inaccurate figures, designed to improve its financial performance. Furthermore, the airline has been inconsistent in calculating the value of its depreciating assets. “Depreciation is not calculated at the same rate. In addition, the residual value is presented for some assets while it is overlooked for others”, a recent audit reads. Allegations of corruption and nepotism have been rife at the Montenegrin carrier for years. In 2012 a report by the Montenegrin State Audit Institution indicated the airline had covered up millions of euros worth of debt. The Institution found that Montenegro Airlines withheld losses in its financial reports and struck off debt owed to Airports of Montenegro, Jat Airways, the Serbia and Montenegro Air Traffic Services Agency, Lovćen Insurance Company and the State Health Fund. The State Audit Institution concluded that a total of 2.085.000 euros worth of debt had been covered up. In the past, the airline has also been under investigation for corruption after trying to set up an airline in Niš, in south-eastern Serbia, and attempting to illegally lease a Fokker 100 jet to an Albanian airline. However, court proceedings have since been dropped without explanation.

66 comments:

  1. The problem here is that this investigation is probably happening only because mafiosi Djurisic fell out of favor with governing mafia in Montenegro, not because anyone is genuinely concerned in the government with these losses and cover-ups which I'm sure they knew about.

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    1. You should be aware that DPS is slowly crumbling from the inside. There are warring factions everywhere.

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  2. How can everyone know about this, even the amount that they modified and covered up and absolutely no one is in jail by now. This happened 3 years ago!?!?!!

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  3. Bribery and corruption at its best.The same in every public company in the Balkans, the company mustn't relate to civil aviation. Criminals lead the Balkan banana states so the people got what they vote for; and deserved.

    ot

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  4. And everybody is surprised that nobody is interested in that airline.....this is just the famous tip of the iceberg. The worst thing is that all this has been known for years of the Family company Montenegro and they believe that they have a place in EU....corruption has go at all levels.

    There is a fundamental error in management when you have a Chief Executive Officer, then referring to another Executive officer which according to another report a few days ago vetoed a decision made by the CEO.....is this the fuxxing UN?!

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  5. And they actually thought they stood a chance with Etihad!

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    1. I wonder what happened to that deal. The current CEO announced it, even the Serbian Minister for Labour announced it. So there must have been something planned and then it all fell through.

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    2. Then Etihad probably saw the sh*t the airline was in and decided to steer far away.

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    3. And Jat and Alitalia were not in their own sh*t?

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    4. I don't remember Jat or Alitalia ever hiding their losses. In fact you can find all of Jat's financial reports on the internet since 2002.

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    5. oh yes they were. After scanning Etihad announced that they found some 40 million more debts in Jat than it was presented.

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    6. And US media uncovered that Etihad was also hiding some of their own expenses so as to increase profitability. So one is innocent here.

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  6. U celoj vesti najmanje razumem future koji se koristi.

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  7. This airline along with many state companies in Montenegro will collapse once Milo's government collapses and believe me it will happen sooner rather than later.

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  8. But it is amazing and I remember in those years 2010-2013 everyone thought MGX was the most successful airline in ex-Yu. They were getting new planes (EMBs), they were reporting great results... and it all turned out to be one big farce.

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    1. it sounds so familiar. almost like bussiness model of one famous airline in ex yu region

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    2. Which one? Adria that received 60 mil EUR in state aid and sold all of its planes in 2014 to present a profit. Or Croatia Airlines which got 70 mill EUR in state aid a few months before Croatia became an EU member?

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    3. Croatia gets 70 million EUR of state aid few months before Croatia become EU member? Really???? In your dreams or in some paralel universum?

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    4. Actually it is 87 million EUR (650 million HRK) worth of state recapitalization of OU ( THAT is considered as state aid by the EU Commission) in November 2012, and that is few months (around 7) before Croatia joined EU.

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    5. Not true. It was 550 million kunas, and 50% of that was CTN obligation to found (that is why they remove A320, sell and lease back some planes and engines...).

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    6. "Croatia Airlines objavila je danas poziv na izvanrednu glavnu skupštinu 27. prosinca, a dioničari će na skupštini odlučivati i o dokapitalizaciji unosom prava, odnosno unosom dospjelih potraživanja države u iznosu od 651,9 milijuna kuna u temeljni kapital, u zamjenu za novoizdane redovne dionice "
      http://www.novilist.hr/Vijesti/Gospodarstvo/Drzava-dokapitalizira-Croatia-Airlines-i-dostize-gotovo-stopostotni-vlasnicki-udjel

      Second source is even worse for you, amount of recapitalization is 862 million HRK

      http://www.vecernji.hr/kompanije-i-trzista/croatia-airlines-pred-propascu-u-minusu-370-milijuna-kuna-509436

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  9. Last sentence is key "However, court proceedings have since been dropped without explanation"

    Same will happen this time around

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    1. True, especially since Djurisic's wife is the Ambassador to France and former minister of defense.

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  10. OT
    Pregovori su u toku da se uvede linija BNX-LED-BNX.
    Kompanija FV je u pitanju .
    INN-NS

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    1. Sačuvaj me Bože INN-NSSeptember 29, 2015 at 2:25 PM

      E da... iz Banja Luke ima putnika za Beograd tri puta sedmično, nije bilo za više ni sa subvencijama, nisu uspeli ni Austrian, ni Adria, ni Edelwisse, ni B&H Airlines, nema linije ni za Frankfurt, ni za Minhen, ni za Cirih, ni za Paris, ni za Beč, ni za London, čak ni za Moskvu, ali će sa Sankt Petersburg da uspe. Pa ni Beograd nema sa Sankt Petersburg. Ma bravo! Teški genijalci ovi u Banja Luci.

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    2. To je ta logika uspjeha iz RS-a! :)

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    3. Ovakvu glupost odavno nisam cuo...

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    4. Ma pustite ga vidite da samo umišlja kako bi provukao pažnju...

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    5. Sad ima i u novinama ako meni ne verujete .
      Ja kazem cuo sam da se uvodi linija .
      INN-NS

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    6. Banjaluka je dovedena do potpunog rasula. Uskoro vjerovatno prestaje i kargo.

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    7. Marko, a tvoje misljenje o liniji?

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    8. Banja Luka napreduje ne raspada se kao Pojedini krajevi .
      Moje misljenje je da je linija pogodak zbog velikog broja Ruskih firmi i ostalih stvari.
      INN-NS

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    9. A najviše ovih ostalih stvari...

      Znate kako se definira "itd." (ostali, i slično...). To su riječi koje se stavljaju kada nedostaje argumenata a da bi izgledalo da argumenata ima mnogo.

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    10. Znate da ima dana kad sam i ja zauzet pa nemam vremena da se raspravljam stalno sa vama.
      INN-NS

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    11. Marko, jel to ono kada si na poljoprivrednim sajmovima?

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    12. Halo INN-NS September 29, 2015 at 7:12 PM

      S obzirom ko vodi BNX, a i ko tamo sve radi, ti bi se odlično uklopio. Ako ti treba posao, obrati im se. Žude za takvim kadrom. Svi su pljunuti takvi.

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    13. Marko, cak ni BEG ne leti za LED a u Srbiji kud i kamo vise Rusa radi nego u RS jedino ako nije zbog tih "ostalih stvari"...

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    14. @ 11:31 PM
      Postovani Gospodine bez problema bi dobio samo nisam dovoljno strucan da vodim Aerodrom .
      Saobracajni Fakulteti saradjuju i proracunali su da bi linija bila isplativa , ne mojte mene uciti molim vas odakle se sve leti za LYBE:
      INN-NS

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    15. Sine, obično se ne počinje sa funkciom direktora, no dobro.. Kazes Saobraćajni fakulteti, množina?! Koji fakulteti proračunavaju komercijalnim kompanijama isplatljivost otvaranja nekih linija? I na kraju uobicajeno je da se koriste IATA kodovi sine. Vidis, kada sam bio tvojih godina, ni na kraj pameti mi nije bilo da starijem kolegi kazem "da me nešto ne uči".

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    16. Saobracajni Fakultet iz Doboja ili Banja Luke saradju je sa onim iz ST Petersburga i zajedno su imali studiju neku i pokazalo se da je linija profitabilna .
      Ja ne znam dali je neko stariji ili mladji od mene ne gledam u kuglu kao vi .
      Nisam pisao IATA kod nego ICAO kod.
      INN-NS

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    17. corruption at it's best. Someones pockets are being filled if this happens.

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    18. Ako se ovi letovi i dese biće to jedna velika smehotresna priča. Kazes ICAO jel, da li si ikada ikoga na ovom blogu video da ih koristi osim tebe?

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    19. Koristi ih takodje cesto najpametni clan na ovom forumu Aerologic koristi ali nazalost jako malo komentarise u zadnje vreme i jos neki koji znaju .
      Zasto da bude smehotresna prica kad ce letovi biti profitabilni ;).
      INN-NS

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    20. Zato što su van svake pameti.

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    21. Za INN-NS September 30, 2015 at 12:06 AM,

      nije bitno što si, umjesto IATA, upotrijebio ICAO oznaku. Mi smo uspjeli shvatiti šta si htio reći u tom postu, ali ti zbilja imaš problem s pravopisom, da ne kažem s pismenošću.

      U tom postu, u te samo dvije rečenice, načinio si nevjerovatno mnogo, i gramatičkih i semantičkih, grešaka.

      Evo te tvoje ukupno dvije rečenice na srpskom:

      Postovani Gospodine bez problema bi dobio samo nisam dovoljno strucan da vodim Aerodrom .
      Saobracajni Fakulteti saradjuju i proracunali su da bi linija bila isplativa , ne mojte mene uciti molim vas odakle se sve leti za LYBE:

      Gospodine - treba pisati malim slovom. Uz to, "gospodine" je viška u toj rečenici. Dovoljno je "poštovani".

      Iza "poštovani", obavezno ide zarez, a mogao si preći i u novi red. (Prelazak u novi red je već stvar stila, ne ubrajam u greške. Kao i korištenje slova c umjesto č i ć. Kao i tipkarske pogreške.)

      Neispravno je "bi", trebao si napisati "bih", uz to, nedostaje ti objekat, čitalac nije u stanju biti siguran šta bi ti to dobio, možda "posao" ili "radno mjesto" ali, to si ti trebao navesti u toj svojoj rečenici.

      "Aerodrom" treba pisati malim slovom, zvučalo bi bolje da si rekao "jedan aerodrom" ili ako si mislio baš na BNX, onda si mogao reći "taj aerodrom".

      "Fakulteti" treba pisati malim slovom kao "fakulteti". Uz to, morao si decidno navesti koji fakulteti saradjuju po tom pitanju, jer ovako, čini se da svi fakulteti na ovom svijetu saradjuju u vezi s isplativošću te avio-linije i svi zajedno su proračunali da je ista isplativa. Nisi trebao upotrijebiti ni gramatičko prošlo vrijeme i reći "bila isplativa" nego si trebao reći "isplativa". Tako se, u odredjenim slučajevima, slažu vremena u engleskom jeziku, ali ne i srpskom. Pogotovo što, s obzirom na malu vremensku distancu, postoji vrlo velika vjerovatnoća da je ta linija i dalje isplativa, ako je bila u vrijeme ispitivanja od prije par nedjelja.
      Moram dodati da ta dva fakulteta, na koje si vjerovatno mislio kad si ovo pisao, nisu radili nikakvu studiju nego se ovdje radi o jeftinoj, a i nebuloznoj, izjavi nekakvog nadri dekana nekakvog privatnog nadri fakulteta, u selendri koja se zove Doboj, i to saobraćajnog "fakulteta" drumskog smjera, lika koji s civilnim vazdušnim saobraćajem a i vazduhoplovstvom uopšte nema nikakvih dodirnih tačaka. Dakle, ovdje se radi samo o hoštaplerima koji su već pojeli Republiu Srpsku i ni o kom, i ni o čemu, drugom.

      Neispravan ti je red riječi u npr sledećem dijelu rečenice "ne mojte mene učiti molim vas odakle se sve leti za LIBE:". Ako si već napisao tako, trebao si "molim vas" izdvojiti sa dva zareza. Tako bi to još i naglasio. Mnogo bolji redoslijed riječi bi bio: "molim vas, nemojte mene učiti odakle se sve leti za LYBE".

      "Ne mojte" treba pisati sastavljeno.

      Rečenica se zavaršava tačkom a ne dvotačkom. A čitav tekst pogotovo.

      Na kraju, nisam lektor po profesiji, svako od nas pravi greške, i ja naravno, pogotovo postujući na nekakvom internet blogu, ali kad si ti u pitanju, očita je zabrinjavajuća nepismenost. Zbilja nije jasno, kako si mogao dobiti dvicu iz srpskog jezika u osnovnoj školi. Ili si se rodio i živiš vani pa ti srpski baš i ne ide. To je nešto drugo. Možda onda nije loša ideja da postuješ na engleskom. U svakom slučaju, nadam se da ti je korisna ova moja opservacija vezana da pravopis.






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  11. What I don't understand is how a company with such big losses doesn’t run out of cash? They do pay their people, make lease payments, airport charges, fuel etc. Maybe they don’t pay SMATS or TGD and TIV but the rest must be paid. Do they get a lot of money from the state budget every year?

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    1. Of course it does. I read just a few days ago that it is the most subsidised state owned company in Montenegro. In 2014 they received the most support from the budget.

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    2. One has to consider that we are talking about country with population of 600K and those paying taxes being only a fraction of that amount.

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  12. OT - when will Croatia Airlines install wifi on their flights ?

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    1. From 01.01.2016.

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    2. Why no announcement ? This is a BIG deal ....

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    3. It is 30.02.2016, not 01.01.2016

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    4. You are asking for a source for the 30.02.2016 date?

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    5. Aha, littlebit tomorrow.

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  13. OT: Air Serbia flights can now be upgraded (from Y to J) with Etihad miles:

    http://www.etihadguest.com/en/spend-miles/airline-partners/air-serbia/

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    1. Bad news for JU haters!

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    2. Why? This was kind of expected and not such big news.

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    3. How many miles will be needed for upgrade on JFK-BEG segment?

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    4. Depends on what class you are going for, economy, business, first or the residency. I heard Air Serbia will have it all.

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  14. Anybody knows what are those AN-12 flights to Valencia?

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