Automated Fare Collection System Operator Kentkart Claims Belgrade Official Offered them “a Done Deal” in New Tendering Procedure

Veljko Vlahovic, Redzaj Kolaj (BETAPHOTO/MEDIJA CENTAR BEOGRAD)

The general manager of company Kentkart, operating automated fare collection system for public transport in Belgrade, Veljko Vlahovic, on April 11 said that the chief of the Belgrade mayor’s Office, Nenad Milanovic, had offered to company representatives to be the predetermined winner in a new tendering procedure in exchange for agreement termination by mutual consent.  

Speaking to a news conference, Vlahovic said that neither he nor his colleagues had ever been given such illegal offer, adding that it was not about the absence of public interest, but “it is rather about personal interests of individuals in the city administration."  

According to Vlahovic, under the agreement between the City of Belgrade and Kentkart, the City of Belgrade assumes risks relating to fare collection. Vlahovic also said that the company’s legal team had been informed about the matter and would take necessary steps, noting that it was difficult to say at the moment what indemnity amount they would seek.  

Vlahovic also said that the matter had been brought to attention of the Serbian Government, the president and the finance minister. He stressed that Serbia and Turkey, where the company’s head office was located, had in place an agreement on protection of investments, noting that unless amicable settlement was reached, the case would be brought to international arbitration.

Earlier, media outlets have published an audio recording of Milanovic offering Kentkart representatives a new contract for operating public transport fare collection system in Belgrade in exchange for termination by mutual consent of the agreement concluded in 2021, which the company refused. Commenting on Kentkart’s accusations, Belgrade Mayor Aleksandar Sapic on April 11 said that the Prosecutor’s Office should respond and establish what was true, what was not true and whether the audio recording was authentic.