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Financial Times

[W]estern governments were playing down allegations of
Montenegro's role in smuggling because President
Djukanovic was seen as a bulwark against Slobodan
Milosevic....
[The reporter was well-advised not to attach his name
to this feature.]


Montenegro leader denies smuggling
By a Financial Times Reporter
August 14 2001 
 


Milo Djukanovic, president of Montenegro, has
responded to charges that his country is a haven for
organised crime, notably through the smuggling of
cigarettes. 

In a letter to Financial Times Deutschland, which
published two articles on the subject, Mr Djukanovic
denied that the Montenegrin authorities were conniving
in the illegal trafficking of cigarettes. 

He described the cigarette trade as "regular transit
business" which had been inspected by EU anti-fraud
authorities with no discovery of wrongdoing. 

"Transit of tobacco, as well as of other goods through
Montenegro, has been carried out in accordance with
the laws of our country," he said. 

The Financial Times published an edited version of the
FTD material last Friday. It said that western
governments were playing down allegations of
Montenegro's role in smuggling because President
Djukanovic was seen as a bulwark against Slobodan
Milosevic, the former Serb leader. 

The article quoted a German customs investigator who
estimated that cigarette smuggling from Montenegro
into the European Union had cost the EU $3.55bn in
lost tax revenues. 

Mr Djukanovic dismissed as "irresponsible speculation"
that up to 50 per cent of Montenegro's gross domestic
product could be traced back to the smuggling. He also
rejected as an "ordinary untruth" and "irresponsible
insinuations" the allegation that he had profited
personally. 

Mr Djukanovic became prime minister of Montenegro in
1991 and president in 1998. During his period in
office, the Montenegrin economy suffered hardship
because of the United Nations sanctions against
neighbouring Serbia. 

In separate correspondence, Vinka Jovovic, Mr
Djukanovic's adviser, also dismissed statements by
Ottavio Del Turco, a former Italian government
minister, who claimed that the president had protected
powerful businessmen such as Francesco Prudentino
involved in smuggling. "President Djukanovic has
stated several times not only that he has never
received any donation from Mr Prudentino, but that he
does not know him," he said. "Not a single criminal
now has or will ever have a shelter in Montenegro." 

This month, the European Commission renewed a lawsuit
against two big US tobacco companies, Philip Morris
and RJ Reynolds, on charges of conspiring in smuggling
cigarettes into the EU from eastern Europe. 



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