Veterinary Institute represents the only producer of vaccines against anthrax, rabies, gangrene, and instruments for detection of brucellosis and cattle tuberculosis in the Balkans. It is, also, a producer of cattle fodder. That is why the employees and the public were pleased with the decision made by the Agency for privatization to privatize the company trough a tender, understanding that the State was interested in keeping the company, and finding an adequate strategic partner. Unfortunately, all hopes of honorable intentions of the Agency sank with the first tender. The Agency accepted the offer made by “Delta” to purchase the Institute for two million euros, whereas the company had two and a half million euros at the account that morning.

The only thing that saved them from being robbed was the fact that English and Serbian version of the advertisements were different. Realizing that it is just another “legal” privatization in which several Serbian families buy everything, the employees decided to buy the company themselves and established a Consortium. At the next tender their Consortium was the only one to fulfill the conditions. The other participant was a Consortium “Zekstra Bankom”. Since “Zekstra” is in a textile business, declaring it a strategic partner for the production of veterinary vaccines was impossible, this, however, was performed with the help of “Bankom” whose line of business matches, to some extent, the line of business of the Institute. During the tender procedure, the expert consultant recognized that the Consortium “Zekstra Bankom” was not established pursuant to the law, in other words it did not exist.

Mr. Cedomir Jovanovic put pressure on the Tender Commission to reach the decision that the non existing Consortium was a first ranked bidder, confirmed by Minster Vlahovic in the decision to the objection of the only bidder fulfilling the terms – Consortium of the employees.

The Supreme Court of Serbia annulled the decision of the Ministry for Economy and in a new procedure asked for a new decision, taking into account objections and legal interpretation of the Court. The Court especially insisted on questioning the objections regarding the Consortium “Zekstra-Bankom”. Ministry for Economy, now Minister Bubalo, wrote a new decision, exact as a previous one annulled by the Supreme Court. New decision was almost a copy of the annulled one, with a new legal remedy in the end –acknowledging that “Zekstra – Bankom” Consortium was not established pursuant to the law, that it legally did not exist, but that it might become valid afterwards, by convalidation of the contract. Ministry reached the decision that the Consortium, which has not yet become one, was the first ranked for the tender, qualified to conclude the contract with the Agency and purchase the Veterinary Institute.

Anti – Corruption Council forwarded the analysis of this problem to the Government, suggesting the revision of this matter at the first session, in order to act in due time. In the repeated decision, Ministry did consider objections made by the Supreme Court, which they were obligated to, pronounced the Consortium a legal subject, recognizing at the same time that it did not exist, and referred to the Law on obligations, although it was not a question of obligations, but a contract altering the status, that is establishing a new legal subject, whereas regulations on privatization of the company apply.

It is the conclusion of the Anti – Corruption Council that this case represents either an incredible example of ignorance, or an incredible example of a corruption. In both cases the Government has to react.

Ms Verica Barac,
President of the Council