Montenegro signed a contract in March 2005 to sell its majority state shareholding in Telekom Crne Gore to Hungary’s Matav for 114 million euros. The sale was presented at the time as one of the country’s most important privatisations, with expectations of new investment, modernised telecommunications infrastructure and better customer services. Recent hearings at the Higher Court have brought the deal back into public discussion.
Branko Vujović, who chaired the tender commission for the privatisation, reported that investment in the first five years reached 94 million euros, against a plan of 60 million euros. Another 14 million euros was allocated to address excess employment after the sale. Matav later bought shares from minority shareholders, raising its stake to 76.5% and taking the total value of its purchases to about 140.5 million euros.
In the first five years after the sale, Telekom shareholders received about 124 million euros in dividends, of which nearly 95 million euros went to the majority owner. Ines Mrdović provided figures showing that all shareholders received about 270 million euros in dividends from 2007 through the end of 2025. The latter figure covers a longer period than the initial five-year dividend total.
U.S. institutions published findings on disputed payments connected with the privatisation, putting their value at about 7.35 million euros. They said the payments were intended to bribe Montenegrin officials to secure their support for the transaction. The Telekom affair has drawn domestic and international attention for years and returned to the spotlight after recent Higher Court hearings.
Milo Đukanović was prime minister when the privatisation took place. Twenty-one years after the sale, questions remain over whether the state needed to sell a profitable company, how much Telekom was worth, whether the promised investments were delivered and who benefited most from the deal. The privatisation remains one of the most controversial transactions in Montenegro’s economic history.
The economic case cannot be assessed only by comparing the sale price with dividends paid later. It also requires consideration of the company’s value, investment made, revenue received by the state and the circumstances of the privatisation. Those questions remain open alongside the renewed attention following the court hearings.
