Special Prosecutor Urged to Investigate Montenegro’s Development Bank

The arrest of Predrag Dragojlović, the chairman of the Board of Directors of the Institute “Dr. Simo Milošević,” has sparked calls for a thorough investigation into his connections with various institutions in Montenegro. Following reports of his detention, Jelena Kljajević, a member of the Democratic People’s Party (DNP), emphasized the necessity for the Special State Prosecutor’s Office (SDT) to delve into the operations of the Development Bank and all entities linked to Dragojlović.

Kljajević stated that if the allegations surrounding Dragojlović are confirmed, it is imperative that all institutions associated with his long-term involvement be scrutinized. This includes questioning the key figures of the former Investment and Development Fund (IRF), now known as the Development Bank of Montenegro.

“This is not just an individual case. It is a matter of trust in institutions and a message to citizens that the law applies equally to everyone, including those who present themselves as investors and reformers,” Kljajević remarked. She insisted that the SDT must urgently investigate whether public funds from the Development Bank have been used legally and whether there has been any illicit financial activity.

Kljajević further stressed the public’s right to know who manages their money and in whose interest it is being utilized. She argued that the Development Bank is a pillar of the state’s economic policy and should not be a space for opacity, hidden relationships, or dubious business models.

“Montenegro must not become a safe haven for illegal activities, financial abuses, and concealed private interests. Therefore, I expect the SDT to examine the leadership of the Development Bank without delay or exceptions,” she added.

The urgency of the situation was underscored by Kljajević’s insistence on the need for institutional support from the government to restore public confidence in the system. “Montenegro deserves clear, transparent, and accountable institutions. As long as I am a member of parliament, I will insist on this uncompromisingly,” she concluded.

In February 2023, the shareholders’ assembly of the Institute “Dr. Simo Milošević” convened an extraordinary session during which a restructuring plan and the appointment of board members were approved. The board included Dragojlović, representing the Development Bank, along with Petar Rakčević, Šefik Nišić from Vile Oliva, Pavle Obradović from the government, and Goran Čabarkapa from the Health Fund.

Last week, Serbian police apprehended seven individuals, including Dragojlović, on suspicion of being part of an organized criminal group that allegedly misappropriated over €3 million. This incident has raised significant concerns regarding financial governance and accountability within Montenegro’s public institutions, intensifying the demand for a comprehensive investigation into the Development Bank’s operations and its connections to Dragojlović.

As the situation unfolds, Kljajević’s statements reflect a broader desire for transparency and accountability in Montenegro’s financial institutions, emphasizing the importance of public trust in governance amidst troubling allegations of financial misconduct.