Montenegro Post has appealed the High Court in Podgorica’s acquittal of three defendants in a case involving an unfinished building in Bar, while its claims of nearly 2.5 million euros remain unresolved, according to the state-owned company. The Court of Appeal will decide the challenge because the High Court ruling is not final. Montenegro Post is headed by Josip Đurašković.
On 22 September, the High Court acquitted Žarko Pavićević of abuse of authority in business, and Danijela Krković and Rafailo Vreteničić of aiding the commission of that offence. Pavićević is a former president of Bar Municipality and former director of the Institute for Construction of Bar (ZIB). The case concerns a residential and commercial building in central Bar.
The court concluded, as Montenegro Post described the ruling, that the company had not suffered damage within the legal definition. It treated the matter as a claim arising from the contractual relationship with ZIB, in the sphere of obligations, and directed the company to pursue its property claim in civil proceedings. The court also pointed to bankruptcy proceedings as a possible way to seek any outstanding debt.
In reaching its decision, the High Court took account of a payment of one million euros under an annex to the contract, Montenegro Post’s retained ownership rights over the land and the fact that the company continues operating in the existing building, which has not been removed. The company’s account also notes that it did not invest money directly in construction, was not the investor and does not know how much was spent on the project.
Contract and outstanding claims
The criminal proceedings included a property claim based on the remaining debt under the contract with ZIB and a contractual penalty. After the one-million-euro payment, Montenegro Post put the outstanding debt at 2,222,000 euros, with the penalty at 217,563.43 euros. Its overall claim was described as almost 2.5 million euros, in addition to statutory default interest.
Interest is calculated on both the remaining debt and the contractual penalty from their respective due dates until final payment. Montenegro Post’s stated claim is supported by its business records. The company’s wording was: “This is Montenegro Post’s claim, according to its business records.”
The agreement provided for Montenegro Post to receive 30% of the net floor area of the commercial and residential space, with a value that could not be lower than 4,351,308.70 euros. Its contribution to the joint development was land in central Bar. The company transferred ZIB the right to use the plot so it could obtain a building permit and carry out the project.
The parties signed the joint construction agreement on 11 July 2008. Montenegro Post’s board had decided on the Bar residential and commercial project on 21 January 2008, and the company said it sought the Government of Montenegro’s consent for decisions related to the project, beginning with that board decision.
Separate civil proceedings brought by Montenegro Post have ended with final decisions before the Commercial Court. On 21 February 2020, that court determined that the company was the exclusive holder of condominium ownership rights to 329 square metres of commercial space. The Court of Appeal upheld the decision on 13 October 2020.
Building remains unfinished
The ownership ruling did not complete the building or allow the commercial space to be put to its intended use, according to the company. Construction has remained unfinished for nearly two decades. The structure in central Bar has become a neglected concrete shell overgrown with vegetation, disrupting the appearance of the city centre.
Montenegro Post acknowledged: “The building in its current state and with construction stalled does not adequately valorise the land.” It has given no specific deadline or model for completing the project and said it would follow the further course of the criminal proceedings. The company has not clarified whether it will take separate steps to establish responsibility for the long-running construction delay, regardless of the criminal case’s outcome.
The Court of Appeal had set aside an earlier High Court judgment convicting Pavićević and Krković on 7 November 2024, returning the case for a retrial. That decision followed appeals by the Special State Prosecutor’s Office, the defence and Montenegro Post’s representative. The current proceedings ended with acquittals for Pavićević, Krković and Vreteničić.
In recent years, Montenegro Post has invested in adapting its premises, including the Main Post Office in Bar. Work there included roof insulation and replacement of worn-out PVC joinery. The company has not provided a timetable or construction model for the unfinished building.
