User:PajaBG/Siniša Mali - other

Agency for privatization

24 privatizations

During his term as the head of the Agency’s Tender Privatization Center, from July 2001 to October 2003, Mali was, by default, involved in every privatization. Of those, 9 are among the group of the highly dubious "24 privatizations", which were addressed as a problematic by the European Union, though Mali claims that he wasn't personally involved in any of those. They include: Jugoremedija, Večernje Novosti, Keramika Kanjiža, Veterinarski Zavod (in 2002), Sartid, Tehnohemija, Sugar export in the European Union, Putnik and Srbijaturist (in 2003).

Beopetrol

Serbian gas station chain "Beopetrol" was privatized in 2003 by the Russian oil company Lukoil. Lukoil, represented by Srđan Dabić, paid 117 million euros and obliged to invest additional 93 million. Lukoil then took a loan from Beopetrol, and falsely presented this money as an investment. According to the report of the Anti-corruption Council from 2013, when all is said and done, Lukoil actually milked several million euros out of Beopetrol. Ex officio, Mali was to control the legality of the process, but the Council concluded that the Agency for privatization didn't control it and didn't punish Lukoil for the breach of contract. However, documentation from the Agency's internal control showed that the Agency knew about the credit. After Mali left the Agency at the end of 2003, he became an employee of Lukoil, until February 2005.

Alfa Protein

State company "Alfa Protein", which owned 10 ha (25 acres) of land near Vršac, was privatized by the businessman Srđan Gajić. In 2009 Gajić bestowed the land to the company "Compost Group", owned by Mali, his father Branislav and several other partners, and the court papers confirmed that the land was never paid for. "Compost Group" was owned by Branislav Mali's "Ferdi Genetics". He transferred the ownership to his son and Mali, ten days later, sold the "Ferdi Genetics" to his offshore company "Alessio Investment Ltd" from the British Virgin Islands for over 500,000 euros. The bank which handled the company's accounts suspected that this transactions might be a money laundering, and notified the Anti-corruption Agency. The bank reported that the "transactions were not according to the usual or expected activity of the client" and that "they came from the offshore territories for which there is a high geographical risk of money laundering". The Agency then discovered a string of suspicious transactions in this and other Mali's companies. Because of this transaction, Gajić was sentenced in 2015 on the two years of suspended sentence, while the members of the Mali family were never tried. Mali's company began producing the compost for mushrooms on the land. In 2013 Mali transferred the company to Ivica Đolić, but Mali's former wife claimed that Đolić, a husband of her maid of honor, is just a figurehead. In May 2017 the court in Pančevo ruled that the contract by which the "Compost Group" acquired the land is void and that the company has to return it to the state. In July 2018 the Belgrade's Court of Appeals upheld the judgment, making it final.

The entire business of the Mali family regarding "Alfa Protein" has been described by the experts as the textbook example of money laundering: Mali purchased a worthless company in Serbia and then sold it for $500,000 to his own off shore company, thus legalizing half a million dollars which legally entered Serbia this way. Documentation of the Anti-money laundering administration points to the fact that Mali is involved in money laundering, however in May 2018 Mali was appointed as the new finance minister, heading the ministry to which the administration whose documentation is implicating him is subordinated. Furthermore, in July 2019 he was appointed the head of the very government agency which accused him of money laundering.

Bratstvo

In the same period, Branislav Mali and a family friend, Ivan Delić, privatized the railroad car producing company "Bratstvo". Hungarian company "Dunavagon" which also wanted to acquire "Bratstvo" claimed that Mali abused the process by revealing to his father sensitive business information. "Dunavagon" complained to the Serbian Ministry of Economy which ultimately asked from the Agency for privatization the annul the auction and to organize another sale. The Agency refused, but when the management changed, they conducted an internal control in "Bratstvo". They concluded that the company was in a bad shape and that new owners breached the contract. Borislav Mali then transferred his part of the ownership to Delić, who, 4 years later, returned the now ruined company, back to the state.

Air Serbia

On 1 August 2013, the Government of Serbia and United Arab Emirates' Etihad Airways entered into an agreement that reorganized the operations of Jat Airways, and renamed it Air Serbia after the transitional period ended. The state retained 51% of Air Serbia while Etihad acquired 49%. Prior to this change, Jat Airways amassed €40 million of net loss per year. As Vučić's liaison with the UAE investors, Mali was appointed the president of the Supervising Board of Air Serbia. He claimed that "strategic partners will finance the company fifty-fifty" and the agreement stipulated that Etihad will invest "up to $100 million" but that sum includes the loans from Etihad to Air Serbia. The state directly subsidized Air Serbia with €69,32 million in 2014, €48,68 million in 2015 and €40,1 million in 2016, which is a total of €158,1 million. Furthermore, the state, which owns the Belgrade's Nikola Tesla Airport, decided not to claim debts made by Air Serbia to the airport by not paying the taxes, in the amount of €16,79 million in 2014 (old Jat Airways debts) and €19,26 million in 2015 (new Air Serbia debt). In total, the state subsidized the company with €194,15 million in three years. In the same period, Air Serbia reported net income of €7,4 million (in 2016 only €857,000) which means that without state help, the company had a total net loss of €186,75 million or €62,25 million yearly, which is over 50% more than Jat Airways prior to 2014. On 31 December 2016 the state subsidizing should stop.

Etihad's investment was much lower, though it should be fifty-fifty. They actually loaned money to Air Serbia, $117.5 million with an interest rate of 7% yearly and growing 0.17% quarterly, plus additional $8 million of transaction fees. On 9 January 2017 state also made a loan to Air Serbia, €14 million, with an interest rate of 3.5%. Air Serbia time deposited €79.2 million in several banks, with an interest rate of just 0.4 to 2.2%. In 2017 Air Serbia began drastically reducing the costs. All branch offices in Serbia, outside Belgrade, were closed and 30 employees, out of 1,600 were fired, and 100 more were scheduled for further dismissal. Larger, comfortable seats in the planes were replaced with smaller, less comfortable ones, to increase the number of seats, and the catering was reduced. Rumors that Air Serbia will transform into the low cost company or that it will leave its offices in Belville were refuted by the company. Despite the dire financial situation and huge amount of state money pouring into Air Serbia, on 28 July 2017 Mali said: "I think that from February of last year (2016), I think even from February of a year before (2015), we (Air Serbia) had no help from the Government of the Republic of Serbia, whatsoever. I am saying that Air Serbia is doing business in the open market".

After being elected as the Serbian finance minister, Mali officially resigned his position in Air Serbia. In June and July 2018 Etihad Airways announced that their management will withdrew from the company on 31 December 2018 when the contract on managing and administration expires, but that they will keep the ownership and that they will "continue to support the majority shareholder of Air Serbia, the Government of the Republic of Serbia". From his new position, Mali stated in July 2018 that "Air Serbia is the fastest growing company in the region" and "the kick starter of the entire Serbian economy". However, the report for 2017 showed that the government continued to pump money into the company even though the obligation expired. Reported net profit was €15.7 million, but €20.8 million were transferred to Air Serbia by the government so without that amount the company would have a net loss of €5.1 million, just as it would in all 4 years since it was restructured. Broker Nenad Gujaničić expressed doubt that full state subsidies, direct or indirect, are higher than this. The company also took a loan from the state's Development Fund, €14 million, with an interest rate of 3,5% per year, which is just one half of what Etihad is calculating for their loans. Mali explained that €12 million were transferred to Air Serbia according to the government's "strategy of the development of tourism" which was adopted by the government at the end of 2016, right when the subsidizing was to stop. Additionally, government donated further €14 million to the company in November 2018: €11,7 million for covering the losses of the Belgrade-New York line in 2017 and €2,3 million for fuel in 2018.

One of the stipulations of the contract between Air Serbia and Etihad Airways was that fleet will be rejuvenated with 4 new Airbus planes by the end of 2018 (and additional 6 by 2020), but no planes were purchased by December 2018.

Other controversies

24 apartments in Bulgaria

In October 2015, journalists from the NGO KRIK and OCCRP published a report on 24 apartments which Mali bought in 2012 and 2013 in Bulgarian resort complex Sveti Stefan in Sozopol, on the Bulgarian Black Sea coast. He bought one apartment on his own name and the remaining 23 as a representative of the two off shore companies from the British Virgin Island. Given the circumstances (the form of the companies and their location) it is impossible to find data whether Siniša Mali owns them or is just a CEO. The companies are "Brigham Holding & Finance Inc." and "Etham Invest & Finance Corp". At the time of the purchase, Mali worked as an economic adviser to Aleksandar Vučić. Total area of the apartments is 3,100 m² (33,000 sq ft) and the estimated value is circa 5 million euros. As the representative of those two companies he bought two Bulgarian companies in July and August 2012, "Erul 11" and "Erma 11" which owned 7 apartments each, while he bought the 15th on his own name. In 2013, using these two Bulgarian companies, he bought another 9 apartments. Later in 2013, Mali sold 4 apartments, so the 20 remained. A certain number of apartments Mali purchased from his old business associate from the period of the Beopetrol privatization seven years ago, Srđan Dabić. Mali claimed that this is not true, that he enlisted help from the Bulgarian lawyers and a graphologist which proved that his signatures on the purchase contracts were falsified and that with that data he will ask from the Bulgarian registry agency to remove his name as the CEO but as of mid-2017, he is still listed as such. Serbian Anti-corruption agency confirmed that Mali was CEO of the companies which purchased the real estates and that they received a statement from their Bulgarian counterpart which said that these deals are doubtful since "they are mostly paid either by cash or non-cash inflows in hughe amounts, in the short periods of time and without clear logic". Vučić defended Mali, claiming that it is easily seen that the signature is forged, but KRIK published Bulgarian contracts and Belgrade city documents signed by Mali which showed that the signatures are the same.

Leaked Pandora Papers confirmed in October 2021 that Mali was indeed owner of the offshore companies which purchased the apartments. State Prosecutor's Office said that they already checked Mali in 2017 and that there is nothing new for the office to survey. The office even criticized their colleague Predrag Milovanović who said that the case should be reopened. Mali himself said that the entire Pandora Papers are just a scheme to attack president Vučić and force him to resign.

Other real estates

Apart from the Bulgarian apartments, KRIK discovered that Mali owned two apartments and three garages close to the neighborhood of Vukov Spomenik in Belgrade. Apartments (131 m² (1,410 sq ft) and 160 m² (1,700 sq ft)} are located in Belgrade's luxury residential complex "Oaza". Based on an average price in the exclusive complex, they are estimated to 800,000 euros. In August 2015, Mali transferred the ownership of the apartments and two garages, to his wife Marija.

45 bank accounts

Serbian Administration for the Prevention of Money Laundering (APML) reported in detail on Mali's suspicious transactions in November 2016. Mali had at least 45 bank accounts: 42 bank on his name, his wife's name or the names of their three minor children, plus additional 3 on other names, but on which Mali had a power of attorney. On some of them, large sums of money were deposited. It was reported that at one point, a sum of €500.000 was deposited, even though his official salary was 107,000 dinars ($1,100 a month). The agencies accused him of fake business deals and money laundering. The State Prosecutor dismissed the case, saying that they saw no evidence of criminal activity and therefore no grounds to open an investigation, but refused to disclose the justification for the decision.

Mali's properties declared a top secret

Even though the assets and properties of the politicians should be available to the public by the Law on free access to the information of the public interest, Anti-corruption agency denied any data to the anti-corruption portal Pištaljka which asked for all the data on Mali that Agency has. Rodoljub Šabić ordered the Agency to provide the data, which then gave some partial information, still withholding many other, like the amounts of the transactions, size of the apartments, types and models of cars, etc. Šabić then warned that he will amerce the Agency if they don't comply. The Agency provided some further data, but still kept many a secret, explaining that the information on Siniša Mali's assets and properties are declared a "top secret". Šabić, using his legal capacities, fined the Agency with the highest fine and ordered them to revoke the top secret classification, so the Agency paid the fine but again refused to disclose the information. In June 2017 Šabić followed the last procedure available to him, sending a request to the Government of Serbia to enforce his decision upon the Agency, but openly expressed a skepticism that the government will do that. Even those partial data from the Agency showed that in January 2016 Mali reported 29 real estates, out of which only two, a garage and a five-room apartment, are under his own name. The Agency also suspected him of questionable transactions from Russia and Kazakhstan and named Mali as the CEO or board member of several companies.

In October 2017 the Center for Investigative Journalism (CINS) asked from the Superior Prosecutor's Office (VJT) data about the legal proceedings against Mali, based on the Agency's report from 2016. RJT refused claiming the top secret designation of the data. CINS filed a complaint to Šabić who again declared the top secret label unlawful and ordered VJT to disclose the papers to CINS in 5 days. VJT never forwarded the information. In March, the State Prosecutor's Office (RJT), superior to the VJT, asked for the decision from Šabić in order to file a lawsuit against him in order to void his decision. After a month, RJT informed Šabić that there will be no lawsuit, but 5 days later they filed it, with an explanation that the "Commissioner broke the law at the expense of the public interest".

According to the data made available by the Agency, Mali actually grew poorer in the 2013-2018 period. In 2013 he reported two 4-room and one 5-room apartment, two garages, two cars purchased in 2009 (Mazda 6 and Volvo), 100% ownership in the "Oli Konsalting" company and the monthly total income of 340.000 dinars (2.834 €): 120.000 dinars (1.000 €) as a mayor, 176.000 dinars (1.467 €) as the president of the Administrative Board of the Komercijalna banka and 44.000 dinars (367 €) as a member of the Administrative Board of the Clinical Centre of Serbia. According to the 2018 report, Mali acknowledged only the salary of a finance minister, the 5-room apartment and one garage.

In the end, the VTJ initiated proceedings against Mali for not reporting his assets. In October 2018 it was announced that Mali donated 200.000 dinars (1.700 €) to humanitarian causes as part of the deal with the VTJ and that proceedings were dropped. In 2019, the VJT continued with the refusal to publish its own decision on rejecting the charges against Mali, claiming it is a "top secret", despite Commissioner continuing to order them to do so.

The Agency has been lenient to Mali a lot. Unlike other conclusions, which would always be followed by the fines and requests for the dismissal of the officials, in less than two years the Agency found Mali was incorrectly reporting his assets three times, but each time they only gave him a warning.

Another anti-corruption and investigative media group, "Pištaljka", sued in March 2017 the then acting director of the Anti-Corruption Agency, Verka Atanasković, for refusing to disclose information on Mali's assets. After two years, in which judge Đuro Pavlica set only two hearings, Atanasković was found guilty of illegally withholding information on Mali and was given a warning. However, the court never dispatched the ruling to the "Pištaljka" legal team. The lawyer found out about the verdict accidentally six months later and tried to obtain it directly in the court building, but the administration refused to do so, claiming the judge is on a vacation. After a while they gave the lawyer a copy, noting it doesn't matter anyway, as after returning to work, the judge will send them the note on statue of limitation expiring (2 years in this case) and not the verdict by which Atanasković was found guilty.

Roman holiday

In April 2018 Mali travelled to Rome, Italy, with his three children and his girlfriend, who works in his cabinet. They occupied the most expensive seats on the Air Serbia flight ands stayed at the luxurious five-star Grand Hotel Plaza's "superior" rooms. It is calculated that, without shopping and other expenses, the cost of flight, rooms and basic food expenses is no less than €7.000, which is more than 7 monthly salaries of Mali.

Senjak villa renting

It was then discovered that Mali became a renter of an apartment in a deluxe new building in the neighborhood of Senjak. The building can't be legalized as the investor built an additional floor more than it was allowed. Mali confirmed that he is renting an apartment, adding that the rent doesn't go over his earnings, but refused further conversation expressing his concern for the safety of his children. According to the investor, rent goes from €2.500 to €5.000 per month, depending on the size of the apartment. Asked about all this expenses which contradict his previous statements that he lives from his salary (€900 monthly in March 2018), Mali now said that "everyone forgets that he worked for 20 years before he became a mayor and that he has some savings".

Personal life

In February 2017, Mali's ex-wife Marija Mali publicly accused him of numerous malversations: corruption, embezzlement and abuse. She gave an interview to the KRIK in which, among other things, mentioned the case of Mali's offshore company "Busby Financial Corp.", where she was appointed as the CEO. In July 2008 Mali bought a car, a Mercedes, and used the company as the title holder for the purposes of tax evasion. When the deadline for the tax payment passed, he transferred the car's title to her. She claimed that Mali constantly gave her cash, whose origin was not known to her. She was depositing it on her account and spent it on their family. Anti-corruption Agency at some point discovered the discrepancy between Marija Mali's income and spending, 95,000 euros from 2013 to 2015. She claimed that Mali and his lawyer forced her to lie to the Agency where she gave a false statement that she has found the money after her father died. She also asserted that Mali didn't report all of his assets to the Agency, showing proofs that he owns two apartments on the Kopaonik mountain and one in the Belgrade's "Oaza" complex. The Agency already initiated proceedings on Mali's properties in 2015, after the affair with 24 apartments in Bulgaria became public. In August 2016 the Agency finished the report and handed it over to the office of the State Prosecutor, which also held a hearing with Marija Mali in April 2017. In the report, the Agency accuses Mali of hiding the assets and providing false information.

Marija Mali admitted that the main motivation behind her public disclosure was a fact that after the divorce, the court awarded the custody of their three children to the father, Siniša Mali. She claimed that Mali told her "you have no chance, the judge is mine", that he was instructed by the state prosecutor what to do, and that he will send her to jail for three years for falsely accusing him of abusing her. During the hearings, it became known that the school tuitions for all the children was 60,000 euros yearly. When asked how he can support that with his salary, Mali said: "Friends who finance my children are friends I've met abroad and they have no connections to Serbia", but never revealed who they are. Mali never reported this money to the Anti-corruption agency. The Social Service issued a report that mother is the more suitable parent, but Mali insisted on an expert who testified at court that he is a better parent. During the custody hearings, several other information came to light. Family nanny testified in Mali's favor, one month after she was employed by the city's communal company "Gradska čistoća". Andrej Jovanović, CEO of the "Bambi" company, acquired a building permit from the city for the "A block" complex in New Belgrade. Seven months later, he hired Marija Mali, without obligation for her to show at work, for the salary of 90,000 dinars (730 euros) monthly. After she divorced Mali, Jovanović fired her. The amount of rent which Mali stated he is paying is higher than his monthly salary so he explained that he borrows money from his father to pay the rent. A month after Marija Mali went public, in March 2017 former spouses issued a joint statement that they have reached an agreement on "equally raising the children" and that they will made no more comments on the subject of their private lives. Marija Mali withdrew from public since then.

XYZ

Marera - Trudbenik, 79 Bulevar kralja Aleksandra; 28 Bulevar k.A; Jugohemija u Resavskoj; Beko u Kalemegdan biznis centar; 44 Makedonska; Beogradjanka; BIGZ. krajnji vlasnik Vladimir Zubrilin rus a i pasos malte, spomenut u panamskim papirima da je iznosio novac u ofsor zone;

Money laundering

Appointed 4 July 2019.

One of the officials with the largest number of affairs.

Due to his involvement in the privatizations, Anti-Corruption Council asked Vučić not to appoint him to the post of an government advisor.

Some members of the NGO sector responded that Mali, as a man who according to the reports of the anti-corruption agencies has a "really problematic career", was appointed "probably because he has experience". Regarding Mali controlling the money laundering, it is evident that "without ethics...there is no progress of the society".

Savamala

Company Millennium Team was given the most lucrative construction works in Serbia and Belgrade, including the Belgrade Waterfront. Owners of the company often took photos with both Vučić and Mali. During his tenure as a mayor, Mali awarded the company jobs valued to €15 million, while the government awarded them project in excess of €75 million. When Mali moved to the government, the company was awarded works for further €15 million. In 2018, the company reported income of €36 million. Witnesses reported that their construction machinery demolished objects in Savamala. Remaining objects, even without finished legal proceedings, were indeed demolished by the Millennium Team heavy equipment.

Personal

Mali's brother, Predrag Mali, is a close friend of Andrej Vučić, brother of Aleksandar Vučić. According to Siniša Mali, it was this friendship that convinced Aleksandar Vučić to appoint him as a mayor, adding that he "helped them all the time", referring to their brothers. Predrag Mali was given an Audi A6 by the Millennium Team, to drive it. The company also gave him an apartment in the neighborhood of Voždovac, where he moved in his girlfriend at time. Predrag Mali denied it, but the police report from 2014, when he was apprehended by the police and fined for drunk driving, shows that company is the owner. He was also driving this car during the incident on the Gay Pride that same year, when he lied to the police that he is the owner. Due to the heavy involment of the Mali family with the company, former head of the Anti-Corruption Council Čedomir Čupić said this is a "typical example of influence abuse", where one brother is getting gifts from a company and the other one is giving that same company lucrative jobs. State tabloids, who attacked everyone publishing this story, defended Predrag Mali by saying that he actually works in the Millennium Team, which reporters proved wasn't true. Čupić added that if this is indeed the case, regarding corruption, the situation is even worse.

Millennium Team was given the job of Belgrade Waterfront construction. Predrag Mali, Andrej Vučić and Ivan Bošnjak (co-owner of Millennium Team) were all members of the administrative ruling bodies of the KK Crvena Zvezda at the same time. Predrag Mali was CEO of the "Kompost Group", involved in the illegal taking of the land and he was also mentioned in the report regarding unlawful privatization of "Vršaćki Vinogradi". In 2013, driving Siniša's car, Predrag hit another car, property of the Government of Serbia, and was fined. Anti-corruption Agency in October 2019 rejected the inquiry on Siniša Malićs connections with the Millennium Team, claiming there is no basis for that.

Andrej

Mali was called as a witness in the case Andrej Vučić vs. Borislav Novaković, where he was to explain his interview from 2014, when he stated that "Andrej Vučić is Éminence grise in the Serbian Progressive Party, who never shows himself in public". Mali didn't show up, sending an excuse that he is on official, business trip, but not supporting his explanation to the court with documents. Reporters discovered that he was on a family trip with his children in Dubai, which he confirmed after they awaited him on Belgrade airport.