Serbia Prosecution Urged to Probe Mine Tender

BIRODI has called on the Public Prosecution Office to launch an investigation into the tender for de-watering the flooded Tamnava mine.

Key points of BIRN's investigation

The tender became the centre of a media storm after BIRN revealed questions about the Serbian company, Energotehnika Juzna Backa, and its partner, Romanian Ness, which won a contract for 15 million euro to pump out 114 million cubic metres of water from a coal mine.

BIRN's investigation revealed that although one of the tender requirements was for the bidders to have at least one relevant reference, neither member of the winning consortium had such previous experience.

Energetika Juzna Backa's previous work was on the electrical infrastructure in Serbia, while Ness is a construction company. The Serbian company's director, Dragoljub Zbiljic, confirmed to BIRN that his company did not have any experience of pumping large quantities of water.

The investigation also revealed that Zbiljic is on trial for tax evasion in the town of Kragujevac and under investigation for the same charge in the city of Novi Sad.

The investigation also revealed that the consortium not only lacked experience in pumping out water, but did not actually carry out the work for which it was contracted on its own. Instead, it engaged a Dutch company, Van Heck, that carried out the works.

The Dutch company, with unique experience in this field, had offered its services to Serbian officials when floods hit the country in May, but was not contracted in direct negotiations, which Serbian law allows in emergency conditions. 

The article revealed that Serbian Electric Power Industry, EPS, which launched the tender, could have start dewatering sooner had it chosen the...

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