Minister investigated for possible conflict of interest

Source: Tanjug, Radio Free Europe

BELGRADE -- Defense Minister Dragan utanovac has submitted documents to the Anti-Corruption Agency regarding his involvement in the construction of a building in Belgrade.

The Agency requested from the minister to submit the necessary documents regarding the construction of a luxurious apartment-office building in the Belgrade municipality of Vraar in order to investigate whether there is a conflict of interest.

One of the apartments in the future building should be utanovacs.

Anti-corruption website Pitaljka obtained information that utanovac was building luxurious apartments with his wife and another eight co-investors, including Cyprus-based company that has been doing business with the Defense Ministry.

According to Radio Free Europe, Cyprus-based Vilab Pharm Director was Radomir Bzik who owned a Belgrade-based company called Peyton Medical that sold medicines and medical equipment to the Defense Ministry. The company got the contract five times, without a tender.

One of the five cadastral lots on which the office-apartment building will be built, was a public city land. It has 744 square meters and the City of Belgrade leased it to utanovac and his co-investors for 99 years based on a contract with the Building Directorate and a decision of the Belgrade Urbanism Secretariat.

The defense minister confirmed himself earlier that he was taking part in the construction of the building since he did not own an apartment and added that a friend who is in the construction business suggested him to do so.

The fact that the minister is involved in a construction business with a former owner of a company that did business for the Serbian Army (VS) raises doubt that there is a conflict of interest and the Agency will investigate it, Anti-Corruption Agency Board President Zoran Stojiljkovi said.

I think that the Agency has already contacted Mr. utanovac and if Mr. utanovac has started the construction with his co-investors and if the company he is building with has business ties with the Defense Ministry, then it is reason enough to investigate the situation, he told Radio Free Europe.

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Minister investigated for possible conflict of interest