Montenegro probes Mozura wind park deal

Montenegro probes Mozura wind park deal
Deputy Prime Minister Dritan Abazovic says corruption and organised crime are Montenegro's biggest problems. / gov.me
By bne IntelliNews March 9, 2021

The acquisition of the Mozura wind park by Malta’s Enemalta will be probed by Montenegro's National Council for the Fight against High-level Corruption, according to Montenegrin Deputy Prime Minister Dritan Abazovic. 

In June, Reuters reported that 17 Black Limited, an offshore company investigated by Maltese journalist Caruana Galizia prior to her murder, was involved in the deal. Moreover, 17 Black allegedly made a €4.6mn profit from the deal.

In February, Maltese state energy company Enemalta found that €6.8mn of the total price of the deal on the acquisition of the Mozura wind farm was not included in the documents on the deal.

Enemalta acquired the Mozura wind farm project in November 2015. However, before being transferred to Enemalta, the project was sold to an intermediary, Seychelles-registered Cifidex Ltd., for €2.9mn. The company then sold it to Enemalta for €10.3mn.

Enemalta launched an internal investigation and found out that, while it acquired the wind farm from Cifidex for €10.3mn, the contract 'under-declared' the price by €6.8m. The sale price listed on the contract signed between the two companies and declared to the tax authorities in the Balkan state was €3.5mn, Times of Malta reported.

Moreover, according to Enemalta, 17 Black’s owner Yorgen Fenech had secretly funded Cifidex’s acquisition of the shares from the actual owners weeks prior to them being sold on to Enemalta.

The internal report has recommended that Enemalta hires a Montenegrin lawyer to examine whether the alleged under-declaration was covered by the clause stating that further compensation could be given to Cifidex.

According to earlier reports by Reuters, the UAE-registered 17 Black Limited posted an undisclosed profit of €4.6mn at the time when Enemalta acquired the Mozura wind farm in Montenegro.

Prior to the deal, there were several trips to Montenegro led by Malta’s then energy minister, Konrad Mizzi. Reuters reported that in the same month as the deal was inked, Mizzi and the prime minister’s then-chief of staff, Keith Schembri, received payments from 17 Black Limited for undisclosed services.

The Mozura wind power plant started commercial production in November 2019. The 46MW plant is located in Ulcinj and is the first such project in Montenegro.

Montenegro’s new government led by Prime Minister Zdravko Krivokapic has pledged to show real results in the fight against top-level corruption. 

Speaking to Malta’s NET TV, called corruption and organised crime the biggest problem in Montenegro.

"The National Council for the Fight against High-level Corruption has made the investigation and resolution of this case one of the priorities, and will soon start talks with the competent authorities in Malta regarding this case," said Abazovic, according to a government statement.

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