State-owned electro-energy companies in Montenegro, totaling five, have distributed over 6.5 million EUR in donations and sponsorships over the past six years, alongside a notable increase in employee numbers, as revealed by research from the Balkan Investigative Reporting Network (BIRN) Montenegro.
Aggregate data indicates that companies including Elektroprivreda (EPCG), Crnogorski elektrodistributivni sistem (CEDIS), Crnogorski elektroprenosni sistem (CGES), EPCG Solar Construction, and EPCG – Željezara Nikšić amassed business revenues of 3.49 billion EUR during this period.
- Expenditures over the same timeframe totaled 2.81 billion EUR, with wage expenses, compensation packages, and other personal costs amounting to 373.33 million EUR – according to BIRN Montenegro’s ongoing seven-month monitoring of the spending habits of these five electro-energy entities.
BIRN selected these companies amidst public speculation that their funds might be exploited for political purposes by their leadership.
- Despite some firms ending multiple years with negative balances, the combined net result reached 300.11 million EUR. CEDIS reported losses in both 2021 and 2022, as did Solar Construction every year since its inception. EPCG – Željezara Nikšić, established just last year, similarly reported a negative net result – the study detailed.
The research also highlights a significant rise in workforce numbers, reflecting both organic growth and the addition of new enterprises over the years. From fewer than 2,600 employees across three companies in 2018, the workforce expanded to over 3,800 employees across five companies last year, inclusive of Željezara.
- Throughout the observed period, these companies disbursed over 6.5 million EUR in donations and sponsorships. The data indicates a marked increase in donations following the change of government on August 30, 2020, which saw new leadership assuming control in 2021 – BIRN noted.
Donations and sponsorships amounted to 929 thousand EUR and 812 thousand EUR in 2019 and 2020, respectively, but surged significantly post-leadership change. In 2021, contributions totaled 1.4 million EUR, nearly doubling the subsequent year, and almost 1.4 million EUR in the last fiscal year.
- Major beneficiaries of these contributions included government entities, religious groups and affiliates, and sports organizations. However, sponsorships and donations remain vulnerable to potential misuse influenced by political agendas – the report cautioned.
In terms of executive compensations and salaries within the electro-energy sector, CGES was the sole company to provide detailed documentation regarding executive pay, membership stipends, and other related expenses. Board membership stipends at CGES ranged from 673.68 EUR in 2019 to 724.02 EUR in 2022, while the chairman’s stipend varied from 2.43 thousand EUR in 2019 to 3.02 thousand EUR in 2022.
- Alongside CGES, EPCG – Željezara Nikšić disclosed executive pay details, outlining a monthly gross salary of 1.51 thousand EUR for the board chairman, 1.09 thousand EUR for board members, and 2.99 thousand EUR for the executive director. Other companies, however, opted to share internal compensation policies with BIRN rather than specific payment details to officials – the report disclosed.
Regarding corporate spending through business cards, four firms provided limited documentation. EPCG – Željezara Nikšić stated it no longer maintains active corporate cards. Cumulatively, these companies spent slightly over 60 thousand EUR via business cards during the period under review. Notably, data on when Željezara ceased card usage, particularly following revelations of former board chairman Marko Perunović’s gambling activities totaling 19 thousand EUR, prompting criminal proceedings, remains undisclosed – the study concluded.
BIRN emphasized the urgent need for enhanced transparency regarding corporate spending among Montenegro’s electro-energy companies.
