Serbian Defence Minister Accused of Nepotism

According to the Anti-Corruption Agency's decision on the case, which BIRN obtained on Monday, Gasic had a conflict of interest when he awarded contracts to companies connected to his wife and son while he was mayor of the town of Krusevac.

BIRN's investigation in May revealed that Gasic, who is also vice-president of the ruling Serbian Progressive Party, awarded several contracts to companies linked to his family in 2013 and 2014.

In its ruling after a probe based on BIRN's investigation, the Anti-Corruption Agency said that Gasic broke the Law on the Agency for the Fight Against Corruption when signing four contracts.

It also said that he was legally obliged to report a suspicion of conflict of interest to the Krusevac administration and to the Anti-Corruption Agency but failed to do this.

This was the strongest ruling that the Anti-Corruption Agency could make in the case because it cannot recommend Gasic's dismissal as he is no longer mayor of Krusevac.

The agency concluded that Gasic had awarded two contracts to a company named ADD Production, owned by his wife Irena, and another two contracts to the company BNZ-Higijenic, co-owned by his son, Vladan.

Gasic in May denied the allegations that he had a conflict of interest. "Well, I cannot renounce my family," he said.

He now has 15 days to lodge a complaint against the Agency's decision.

The agency's decision said that Gasic had denied wrongdoing, and explained that he asked the local authorities if he had a conflict of interest before the contracts were signed.

However, the Agency established that the former mayor failed to adequately inform the Kragujevac authorities about the contracts before they were signed.

Gasic was mayor of Krusevac from June...