Serbian Minister's Father 'Mediated Saudi Weapon Sales'

The father of Serbia's Interior Minister, Branko Stefanovic, mediated in arms deals between the Serbian weapons manufacturer Krusik and a private Saudi Arabian company, a BIRN investigation can show.

Documents obtained by BIRN show that Stefanovic visited Krusik in May 2017 as one of three representatives of GIM, a Serbian intermediary company that has been a major player in the weapons market since last year.

GIM representatives were accompanied by three Saudi buyers who were interested in purchasing mortar shells and long-range missiles on behalf of the Rinad Aljazira company.

Ahead of any visit to an arms factory, the interested party is obliged to file a formal request.
The owner of GIM, Goran Todorovic, submitted a request for the May visit on April 27, asking permission for himself and two more company representatives to "inspect the goods". One of those two was Stefanovic.

In the previous year, GIM bought 43 million US dollars worth of ammunition from Krusik, mostly 60, 80 and 120 millimetre caliber mines and and grenades, according to data that BIRN accessed. All of these was sold to Saudi buyers.

Anaylsis of Krusik's dealings shows that GIM had a privileged position compared to other mediators in the arms trade because it purchased goods at prices "significantly lower" than their competitors, allowing them to make better profits.

GIM bought 60 milimetre calibre mines for 47 US dollars per piece, while Krusik sold the same mines to Yugoimport SDPR, a Serbian state-owned intermediary, for 52 US dollars per piece.

A Serbian defence industry source who spoke on condition of anonymity told BIRN that the prices GIM paid to Krusik for the mines were "unreasonably low, bordering on loss".

Former Krusik director...