Restitution default and violations of state privatization

The state of Montenegro has contracted a debt of 67,5 million Euros related to the confiscation of estates performed by the former communist regime against Anastasija Gregovic and Lale Zuber, shipowner and banker.
The state of Montenegro is the sole beneficiary of the above mentioned estates and properties.

This evaluation refers to estates of which the relevant title deeds can be easily checked and is rather underrated then overrated. The evaluation does not include those properties whose title deeds were deliberately destroyed by the former regime.

The position of Montenegro has worsened by the state privatizations operated between 2002-2006 notwithstanding the existence of bounds and the fact that the Zuber Gregovic heirs had applied for restitution according to the Montenegrin law. We recall the responsibility of the Montenegrin government in performing such careless privatization thus violating all genuine restitution logic towards the heirs of the original owners.

On one hand the Montenegrin 2007 denationalization (restitution) law is inadequate and lacking. For instance, this law does not even consider compensation for expropriated private enterprises.

On the other hand privatization is performed very efficiently, even privatization of estates which belonged to private people or private enterprises, thus generating considerable flows of money to the Montenegrin finances.

This report is made to outline the restitution default of the Montenegrin government and the inadequacy of the current denationalization law to solve the debt toward the Zuber Gregovic heirs.

The following consequence is that a special compensation provision becomes indispensable unless the complete restitution of estates can be realized.