Nova Ekonomija Magazine: GIM Sold Krusik Ordnance for Higher Price

Krusik factory, Valjevo (prsc/YouTube/MO)

The GIM company, linked to the father of Interior Minister Nebojsa Stefanovic, sold Krusik factory ordnance abroad for a price USD16.4 million higher than the prices state in the concession contracts and did not report that to the state-owned manufacturer, the State Audit Institution has found, as conveyed by the Jan. 31 edition of Nova Ekonomija magazine.

The Institution says in its report that due to incomplete documentation "there is a risk that not all benefits from the commission deal, carried out under conditions more favorable than those envisaged by the commission contract, were transferred to the Company (Krusik)."

The audit revealed that the commission agents, including GIM, after a sale did not deliver to Krusik a document on commission sales calculation with accompanying documents, which they were legally obliged to do.

However, a review of additionally submitted documents found that only GIM, the company connected with the minister's father, Branko Stefanovic, had been selling Krusik ordnance for prices much higher than the ones stated in the contracts, says Nova Ekonomija.

In the documents subsequently delivered during the audit itself, GIM justified the difference by the costs of air transportation and brokerage abroad, the same as in the case of doing business with Trstenik-based Namenska factory, the magazine recalled.

The State Audit Institution also found that the presented air transportation services in the total amount of USD7,687,749 had been documented by invoices from the transportation organizer, rather than from the companies which had provided the transportation - their invoices were not submitted.

According to Nova Ekonomija, there are also uncertainties regarding the USD8,593,921 fee to a foreign broker. The contracts between Krusik and GIM do not envisage the option of GIM concluding agreements with mediators abroad and fees under such agreements being compensated for from the achieved sale and purchase price.