Ministry of defence Republic of Serbia
 
28.09.2021.

State Secretary’s comment regarding the attack on Minister Stefanović: Monstrous and barefaced lies



State Secretary at the Ministry of Defence Branko Živanović’s statement:

"Concerning the allegations made by certain media about the alleged abuses in the Ministry of Defence regarding the construction of hangar at the "Morava" airport, I am informing the public that these are monstrous and barefaced lies.

It is our duty to inform the public about the real and easily verifiable facts related to the realization of the hangar construction project and not to allow attempts to ruin the reputation of one of the most trusted institutions of the Republic of Serbia, particularly at a time when Serbia is striving to protect the Serbian people in Kosovo and Metohija.

First of all, it is a downright lie that the "Energoprojekt" company was hired to build the said hangar, and no contract was concluded with this company regarding that hangar, including the contract with subcontractors. Therefore, it is clear that allegations made by this media outlet about the confidential contract concluded with "Energoprojekt", construction at inflated prices and alleged plans to rob citizens, for which the minister is allegedly accountable, are malicious untruths.
 
For the sake of truth, we announce that the investor, the Military Construction Centre "Belgrade" concluded the contract for the construction of the hangar with the contractor - the Military Construction Institution "Belgrade" in a standard procedure in keeping with the norms and standards in construction work and the criteria for determining the calculation prices, issued by the MOD’s organizational unit responsible for infrastructure, market values ​​of materials and equipment, as well as transport costs and costs incurred by the contractor in the procurement of materials and equipment.

Also, as far as the price is concerned, the harmonization of the Military Construction Institution Belgrade’s offer is done by the investor’s experts in accordance with the Rulebook on planning, construction and maintenance of infrastructure facilities used by the Ministry of Defence and the Serbian Armed Forces, and the offered prices are compared to costs of materials and works on the market. We note that, as part of the hangar construction, works are being performed on the accompanying communal infrastructure, roads, landscaping and the construction of an apron, at the agreed price of 1,130 euros/m2 for the hangar and 134 euros/m2 for the apron. We also want to state the fact that from the beginning of 2021, due to the instability on the market, caused by the Covid-19 pandemic, there has been a huge leap in the prices of construction materials and construction works.
 
The contractor, the Military Construction Institution "Belgrade", started work on May 20 this year, and so far earthworks have been completed and reinforced concrete works have begun. We emphasize that all previous works were performed by the Military Construction Institution "Belgrade" itself, without hiring any subcontractors, i.e. without hiring the abovementioned "Energoprojekt" company. This clearly shows that the Military Construction Institution "Belgrade" did not conduct a confidential procurement procedure with the said company.
 
Also, we want to emphasize that the Military Construction Institution "Belgrade" only employs subcontractors for the procurement and installation of materials and equipment for which the manufacturer gives warranty only if the installation is performed by authorized companies, as well as for the procurement of works and services for which it is not authorized or does not have available capacities, in full compliance with the provisions of the Law on Public Procurement.
 
In order to fully understand all the facts, we note that hangars that are being built to accommodate specific SAF equipment and vehicles must meet standards regarding the quality of installed equipment, floor load capacity, air conditioning and ventilation, fire protection, etc. The hangar at the "Morava" airport is being built on the site of the buildings destroyed during the 1999 bombing, so the works are being carried out with the SAF providing pyrotechnic security, which additionally increases the construction costs. Since this is a construction of a specific facility at a military airport, the Law on Public Procurement in the field of defence and security applies.
 
It is our obligation to inform you that, in 2021, the Military Construction Centre "Belgrade" and the Military Construction Institution "Belgrade" have carried out over 30 projects of importance to the Serbian Armed Forces, including the construction of hangars, garages for motor vehicles, radar posts, command and housing facilities, as well as projects of importance to the Republic of Serbia including the construction of three Covid hospitals in one year and the construction of a vaccine factory. While carrying out the said projects, all standard procedures, which also apply to the construction of the hangar at the “Morava” airport, have been followed.

Since the Ministry of Defence insists that as many construction companies as possible be involved in the implementation of infrastructure projects in order to meet the basic principles of the Law on Public Procurement such as transparency, cost‐effectiveness and competitiveness, we inform you that despite these malicious acts, we will continue to apply the same principle convinced that only in this way can a full contribution be made to the improvement and development of the defence system. In accordance with that and based on the review of planned works and available own capacities, the Military Construction Institution "Belgrade" will certainly follow the procedure of selecting a certain number of subcontractors for hangar construction over the next period, in full compliance with the procedures prescribed by the Law on Public Procurement.
 
We are also telling the tycoons, who are behind these shameful attacks, to continue sitting in their bunkers hoping that they will cover up their connections with Veljko Belivuk's criminal group by spreading lies."