Indictment over machinations at Vojvodina Development Bank

BELGRADE - Serbian Prosecutor's Office for Organized Crime has indicted six persons for crimes that caused the loss of RSD 3.5 billion to the Development Bank of Vojvodina (RBV).

The indictment was issued against Dusan Borovica and Zeljko Jovovic, as well as four RBV officials suspected of granting 27 dubious loans and bank guarantees to companies of the Borovica and Unihemkom groups, which were controlled by Borovica and Jovovic.

The indicted RBV officials include chairperson of the Executive Board Biljana Jovanovic, Executive Board members Goran Kostic and Jelena Kokelj-Protic, as well as member of the Credit Committee and Director of Corporate Banking Division Slobodan Bajin, the Prosecutor's Office released.

They are suspected of granting loans and bank guarantees to companies of the Borovica and Unihemkom groups in the period from July 2, 2010 to October 8, 2012, which incurred the loss to the RBV.

As stated, the loan granting procedure was conducted contrary to conditions stipulated by the Law on Banks, the decisions of the National Bank of Serbia and internal RBV procedures, by which the indicted officials enabled Borovica and Jovovic to acquire the illegal material gain exceeding RSD 3.5 billion, thus causing a loss to the RBV in the same amount.

Jovanovic, Kostic, Kokelj-Protic and Bajin are charged with complicity in the abuse of position by a responsible person, while Borovica and Jovovic are facing charges of continuing abuse of position by a responsible person.

An investigation is currently underway to determine the accountability of suspect Srdjan Petrovic, bankruptcy administrator and subsequent chairman of the executive board of the Metals bank Novi Sad, which was later renamed into...