Novi Sad: prosecutor investigates four over public procurement fraud, money laundering
The Novi Sad Higher Public Prosecutor's special department is investigating four suspects for public procurement fraud, tax evasion and money laundering.
- The Novi Sad Higher Public Prosecutor's special department is investigating four people.
- The suspects face charges of abuse of office, public procurement fraud, tax evasion and money laundering.
- Three suspects were held for up to 48 hours, while one was not detained on medical grounds.
- The investigation is part of a broader Interior Ministry (MUP) operation in which 26 people were arrested across Nis, Kraljevo and Novi Sad.
The Special Department for the Suppression of Corruption at the Novi Sad Higher Public Prosecutor’s Office has opened an investigation into four suspects, based on an order issued during the pre-trial phase. The case is part of a broader Interior Ministry (MUP) operation in which 26 people were arrested.
According to investigators, the suspects face several serious offenses in the area of corporate crime. The prosecutor’s office opted for arrests on the assumption that the suspects might influence witnesses and remove physical evidence.
What prosecutors allege
The offenses charged against the suspects, according to the Novi Sad Higher Public Prosecutor’s Office, include:
- abuse of official position under Article 359 of the Criminal Code
- trading in influence under Article 366 of the Criminal Code
- abuse related to public procurement under Article 234a of the Criminal Code
- tax evasion under Article 225 of the Criminal Code
- money laundering under Article 245 of the Criminal Code
- VAT-related tax fraud under the Law on Tax Procedure and Tax Administration
According to informal accounts from sources close to the investigation, the modus operandi involved manipulation of the tender procedure and concealing the actual ownership of assets obtained from untaxed sources.
Measures against the suspects
After questioning at the prosecutor’s office, three suspects, I. P., S. J. and N. M., were held for up to 48 hours. The fourth suspect, V. N., was not detained for medical reasons.
Prosecutors allege the suspects are responsible for a series of criminal offenses committed over an extended period for the purpose of obtaining unlawful financial gain, with detention requested to secure their presence in the proceedings and prevent influence on the evidentiary material.
Under standard procedure, once the initial detention expires, the prosecutor may request pretrial custody, on which a pretrial judge at the Novi Sad Higher Court decides.
Legal classification
The offense of abuse related to public procurement under Article 234a of the Criminal Code is punishable by 6 months to 5 years in prison. The aggravated form, when the value exceeds 1.5 million dinars, carries 2 to 10 years.
The offense of money laundering under Article 245 of the Criminal Code carries 6 months to 5 years in its basic form, while the organized form carries 2 to 12 years.
What comes after questioning
The Novi Sad Higher Public Prosecutor’s Office said the next procedural step is the drafting of a detention motion and the submission of a criminal investigations report including the results of the economic and financial forensic work. The forensic work is underway.
According to informal accounts, the forensic examination covers the tracing of funds and an analysis of accounting records of several legal entities. The final classification of the offenses will depend on the forensic results.
The suspects are presumed innocent until proven guilty by a final court decision.
Will the investigation reach other participants in the tender procedure?
