On April 2, Milo Djukanovic lost the presidency of Montenegro, being resoundingly defeated at the polls. Djukanovic, a close friend of Joseph Muscat, had been in power for over 34 years.
Like Muscat, and their common friend, Azerbaijan President Ilham Aliyev, Djukanovic was on that exclusive list ‒ most corrupt man of the year. He won that dubious honour in 2015, Aliyev in 2012, Muscat in 2019. You don’t get the title for outdoing everybody else in corruption for nothing. The three leaders collaborated closely on some stinking deals.
When Muscat hosted Djukanovic in Malta in 2016, Djukanovic was asked about serious allegations he faced – links to the Mafia, cigarette smuggling, gross cronyism and uncontrolled corruption.
“Those allegations,” Djukanovic insisted, “are just a creative fabrication.” He blamed them on “political adversaries”. He pointed out triumphantly that the people of Montenegro had placed their trust in him repeatedly and they weren’t stupid. The clever people of Montenegro have finally shown Djukanovic the door.
Worryingly for Muscat, Djukanovic will lose his immunity from prosecution next month when he leaves the presidency. Montenegro’s parliament voted in December 2021 to set up an inquiry committee to investigate the notorious 17 Black-linked Mozura wind farm project. The vice president of the Montenegrin Assembly, Branka Bosnjak, described it as a “major international corruption scandal”.
That project was foremost in Muscat’s mind on his visit to Montenegro in January 2016. With him he took Keith Schembri, Konrad Mizzi and Kurt Farrugia. Mizzi visited Montenegro eight times in just 24 months.
The red carpet was rolled out by Djukanovic for Muscat. Djukanovic had just been named most corrupt person of the year 2015. Yet, Muscat was quickly doing dodgy deals with him.
Muscat bragged about the Mozura wind farm Enemalta was investing in. “Together we can do a lot,” Muscat commented, “this is just a first project, we’ll help each other.”
And they did. Just four months later, Muscat welcomed Djukanovic to Malta, rolling out the red carpet for him. The Mozura wind farm deal was sealed. Muscat and Djukanovic had more plans. They signed a memorandum of understanding on cooperation in health. The shady Armin Ernst was dispatched to Montenegro to iron out a deal on behalf of Vitals.
Muscat announced that work on Enemalta’s first overseas investment in Mozura would start in the coming days, as Djukanovic beamed. Muscat bluffed: “The way we carried out this project is symptomatic of our openness.”
There was no openness at all. There was complete secrecy and for good reason. The project stank. Montenegro had reached a deal with Spanish company Fersa to develop the wind farm. That deal almost fell apart amid mutual accusations of extortion and bribes.
An offshore company named Cifidex stepped in. It was owned by Turab Musayev, an Azerbaijani executive of SOCAR who was also an Electrogas director, a role he shared with his friend, Yorgen Fenech.
Fenech’s 17 Black loaned Musayev’s Cifidex €3 million to buy out Fersa. Within two weeks, Enemalta paid €10.3 million to buy the shares Cifidex bought for €3 million. Fenech’s 17 Black got its €3 million it loaned Musayev back and a profit of €4.6 million.
The man who negotiated the VGH deal with Montenegro was none other than Armin Ernst, the man now accusing VGH of corruption and collusion with Muscat- Kevin Cassar
Another €650,000 went to Celebic LLC, a company owned by Tomislav Celebic, a close friend and business partner of Muscat’s friend, President Djukanovic.
The men who benefitted most from the dodgy deal were the close friends of Muscat and Djukanovic.
Enemalta claimed it was “unaware of any alleged transactions between Cifidex and 17 Black”. When Reuters revealed the shocking details of the Mozura scam, Enemalta requested an investigation. That report remains a closely guarded secret.
Despite the damning information about the deal, our police force had not taken any action. Nobody has been prosecuted. Police Commissioner Angelo Gafà’s inaction may soon be overtaken by proceedings in Montenegro. The population of Montenegro is outraged. They have been tied down to an agreement compelling them to pay three times the regular market price for their electricity by the Montenegrin electrical utility EPCG, which agreed to buy its power from the Mozura wind farm, now owned by a Chinese-led consortium.
Montenegro wants to know why its former leader, Djukanovic duped his own citizens. And Muscat has a lot to do with it. The latter’s last overseas engagement before being forced out of office was to cut the ribbon on the €90 million wind farm project. Muscat inaugurated that project even as allegations of political graft and bribery amounting to over €4 million were being dealt with by the Montenegrin courts.
But there was another scam being cooked. Ram Tumuluri was in Montenegro in November 2016. Headlines revealed that Vitals were about to take over Montenegro’s public hospitals. “We have done our due diligence,”
Tumuluri commented, “and we felt that the country (Montenegro) requires investment in healthcare.”
On September 27, 2016, Tumuluri set up VGH Montenegro and the inevitable offshore companies linked to it. VGH signed a 30-year health service contract with Montenegro. VGH committed to invest €375 million and transform Montenegro’s healthcare system.
VGH had done the same in Malta. They promised to invest €220 million. But the National Audit Office revealed that their share capital was only €1,200. VGH didn’t invest a cent in Malta. They escaped with millions. The man who negotiated the VGH deal with Montenegro was none other than Ernst, the man now accusing VGH of corruption and collusion with Muscat.
The secret of Djukanovic’s success was clientelism. One of his officials claimed in a leaked tape that every public sector job given secures four votes for his party. Anyone who dared criticise him was labelled “an enemy of the state”. Sounds familiar?
Montenegrins have belatedly realised that, while they struggle on low wages, Djukanovic and his friends have got richer. When will Malta realise that Djukanovic’s friend, Muscat did the same in Malta? Soon enough, now that Djukanovic is gone and Ernst is squealing.
Kevin Cassar is a professor of surgery.