Krušik: arms sales to the GIM company

Category: Money and deals

Period: from 2016

Outcome: Under investigation (as of 21 Sep 2023)

Between 2016 and 2018, the state-owned factory Krušik sold mortar shells and hand grenades to the private company GIM, which resold them in Saudi Arabia. According to documents published by BIRN, GIM paid lower prices than the state arms trader, and the father of police minister Nebojša Stefanović appeared as its representative, which the minister denies. The State Audit Institution found that GIM had not accounted for a $16.5 million difference in prices. Aleksandar Obradović, who gave the documents to journalists, was arrested and suspended, and according to the latest information, from 2023, neither the investigation against him nor the pre-investigation proceedings into the dealings with Krušik have been concluded.

Mortar shells for Saudi Arabia

Between 2016 and 2018, the Valjevo-based state defence factory Krušik sold mortar shells and hand grenades to the private Belgrade company GIM, which resold them to buyers in Saudi Arabia.

From 2018, BIRN published documents showing that GIM paid lower prices than the state arms trader Yugoimport SDPR, and that Branko Stefanović, father of then interior minister Nebojša Stefanović, appeared at Krušik and in Saudi Arabia as GIM's representative and legal adviser. The minister denied that his father had any connection with GIM.

The arrest of Aleksandar Obradović

The documents were passed to journalists by Krušik employee Aleksandar Obradović. He was arrested on 18 September 2019 on suspicion of disclosing a trade secret, spent about three weeks in jail and two months under house arrest, and was released on 18 December 2019.

He has been suspended from work ever since and has not been granted whistleblower status.

The Agency and the audit

In December 2019, the Anti-Corruption Agency concluded that minister Nebojša Stefanović had no conflict of interest, because Branko Stefanović was neither an owner, a representative nor an employee of GIM; it did not examine the prices.

In its audit of Krušik for 2018, the State Audit Institution found that GIM had not accounted for a $16.5 million difference between the prices in its commission contracts with Krušik and the prices invoiced to the end buyer in 2017 and 2018.

A pre-investigation without end

Since November 2019, the Prosecutor's Office for Organised Crime has been conducting pre-investigation proceedings into private traders' dealings with Krušik. According to the latest available information, from NIN in September 2023, neither those proceedings nor the investigation against Obradović have been concluded: the investigation against him has not been dropped, and the proceedings over corruption at Krušik have remained at the pre-investigation stage.

Branko Stefanović has since died, and Nebojša Stefanović left the government in 2022.

Lawsuit against Nova.rs

In July 2020, Nebojša Stefanović sued the Nova.rs portal over the article „We will remember Branko Stefanović for the Krušik affair and a bag of money“, claiming that his father had never been involved in the arms trade, and sought 400,000 dinars for injury to the memory of the deceased.

On 28 October 2021, the Higher Court in Belgrade awarded him 100,000 dinars, and the Court of Appeal upheld the ruling on 24 February 2022. In April 2022, Nova.rs published the operative part of the judgment, which concerns injury to the memory of his late father.

Participants

  • Nebojša Stefanović: Said prosecutors should investigate him if there was a criminal offence; the Agency found no conflict of interest over his father's ties to GIM (commented on the case)
  • Aleksandar Vučić: Said Branko Stefanović was employed at GIM, then that he was “obviously” wrong because “they say he isn't” (commented on the case)
  • Ana Brnabić: Said she had not barred ministers from speaking about Krušik and called the affair made-up (commented on the case)
  • Miloš Vučević: Said outgoing ministers Zorana Mihajlović and Stefanović had “not been punished”; Stefanović was left out of the 2022 government (commented on the case)
  • Krušik Holding Corporation Valjevo: According to contracts published by BIRN, it sold mines to the company GIM more cheaply than to the state-owned Jugoimport SDPR (responsible)
  • GIM d.o.o. Belgrade: Bought mines from Krušik more cheaply than SDPR and, according to the audit, failed to justify a $16.5 million difference on resale (responsible)
  • Public Prosecutor's Office for Organised Crime: Requested checks into claims that private companies were given privileged treatment in purchases; in September 2023 the case was still at the pre-investigation stage (investigation and courts)
  • Higher Public Prosecutor's Office in Belgrade, Special Department for High-Tech Crime: It prosecuted Obradović over arms-trade documents he gave to journalists and, on appeal, got him sent back into custody (responsible)
  • Higher Court in Belgrade: It placed Obradović under house arrest and lifted the measure when the prosecution did not seek an extension (investigation and courts)
  • Agency for the Prevention of Corruption (until 2020 the Anti-Corruption Agency): It concluded that the minister had no conflict of interest because his father had not been engaged by GIM, yet according to BIRN's documents the father was at Krušik on GIM's behalf (responsible)
  • State Audit Institution: It found that GIM had not justified a $16.5 million difference and that part of it should have been paid to Krušik (oversight and the public)
  • Protector of Citizens (Ombudsman): It sent the Interior Ministry an urgent request to clarify the legal basis for arresting Obradović on Krušik's premises (oversight and the public)
  • BIRN: It published documents on Branko Stefanović's role and contracts under which GIM paid lower prices than SDPR (oversight and the public)
  • European Parliament: In its report on Serbia, it called on the authorities to show results in the investigations into Krušik, Jovanjica and Telekom (oversight and the public)
  • Zoran Živković: He filed a criminal complaint with the Organised Crime Prosecutor's Office over arms sales through GIM (oversight and the public)

Victims and others harmed

  • Aleksandar Obradović

Sources

  • BIRN / Balkan Insight: Arms trade: a preferential price for the police minister's father: 19 Sep 2019
  • N1: BIRN: Krušik gave preferential prices to a company linked to Branko Stefanović: 19 Sep 2019
  • KRIK: No progress in the „Krušik“ case, security services have not sent information to prosecutors: 12 Dec 2019
  • N1: BIRN learns: Branko Stefanović is GIM's legal adviser in Saudi Arabia: 2 Dec 2019
  • Radio Slobodna Evropa: Krušik affair: a year and a half with no outcome: 18 Mar 2021
  • N1: Vučić now claims Stefanović does not work for GIM, but does not know why he was at Krušik: 15 Nov 2019
  • Danas: Krušik, Branko and Nebojša Stefanović: the conflict of interest in 300 and 500 words: 9 Dec 2019
  • 021.rs: Agency: Branko Stefanović is not employed by GIM, there is no conflict of interest: 9 Dec 2019
  • KRIK: Aleksandar Obradović released from custody: 18 Dec 2019
  • Danas: Whistleblower Aleksandar Obradović four years after his arrest: I would do it all again: 21 Sep 2023
  • KRIK: Whistleblower placed under house arrest: 14 Oct 2019
  • N1: House arrest lifted for whistleblower Aleksandar Obradović: 18 Dec 2019
  • Radio Slobodna Evropa: Krušik whistleblower 'temporarily suspended from work': 22 Oct 2019
  • 021.rs: Three years on from the Krušik affair: whistleblower Obradović still under investigation: 23 Sep 2022
  • N1: State auditor: Krušik's contracts with GIM disputed: 30 Jan 2020
  • Nova.rs: GIM tries to hide a $10 million debt: 2 Oct 2020
  • Radio Slobodna Evropa: Živković files criminal complaint against Vučić and Stefanović over arms trade: 5 Nov 2019
  • N1: Premijerka Srbije: Nadležne institucije da se bave ulogom ministrovog oca u GIM-u: 28 Jan 2020
  • N1: Ministar unutrašnjih poslova Srbije: Neka me tužilaštvo istraži ako postoji krivično delo: 24 Dec 2019
  • N1: Picula: what Jovanjica, Krušik and Savamala have in common is that they lead towards the SNS: 12 Mar 2021
  • Radio Slobodna Evropa: Dačić foreign minister in Serbia's new government, Gašić interior, Vučević defence: 23 Oct 2022
  • 021.rs: Is Nebojša Stefanović returning to the Progressives' front ranks?: 1 Aug 2026
  • N1: Agencija za borbu protiv korupcije: Nema sukoba interesa u poslovima Krušika: 9 Dec 2019
  • Nova.rs: He prosecuted the Krušik whistleblower and arrested a Belgrade man over threats to Stefanović: who heads the VTK, the prosecutor's office that is supposed to investigate the spying on students?: 4 Sep 2026
  • Nova.rs: Stefanović sues Nova.rs: my father did not trade in arms: 22 Jul 2020
  • Nova.rs: Publication of the ruling in Nebojša Stefanović's lawsuit against the Nova.rs portal: 20 Apr 2022