Press release regarding daily DAN's atricle entitled "Montenegro Defense Industry sold unlawfully"

Podgorica, Montenegro (15 May 2015) – Regarding the claims published by Montenegro’s daily DAN on 15 May 2015 in the newspaper article entitled “Montenegro Defense Industry sold unlawfully,” the Tender Commission for Privatisation issued the following press release.

The public tender for selling 100% of state-owned arms trading firm from Podgorica "Montenegro Defence Industry", called on 13 September 2013, has been conducted in line with the Law on Privatisation, Decree on the Sale of Shares and Assets by Public Tender, Foreign Investment Law and other applicable regulations.

Having completed the established procedures, the purchuse agreement was signed with representatives of the sole bidder in the tender, the consortium consisting of Israel-based A.T.L. - Atlantic Technologies and Serbian company CPR-Impex.

The MANS’s claims that the relevant law stipulates that “A foreign investor shall establish a company for production and trade of weapons and military equipment only with a domestic natural or legal person … shall not have shares worth more than 49% of the share capital” are unfounded and inaccurate.

Namely, by the entering into force of the Law on Foreign Investment, the previous Law on Foreign Investment ceased to exist and the provisions of Article 7 of the Law Amending the Law on Foreign Investment, which is currently in force, read: " A foreign investor may invest in a domestic business organisation, that is, it may establish a company for production and trade of arms and military equipment. A foreign investor may establish or invest in companies referred to in paragraph 1 of the Article only on the basis of the approval of the administrative authority responsible for foreign trade affairs."

According to the provisions of the current Law on Foreign Investment, the privatisation procedure of the ''Montenegro Defence Industry'' was conducted in line with the law.