Rade Basta arrested over Beogradske elektrane donations
The former economy minister and onetime director of Beogradske elektrane is suspected of awarding 14.1 million dinars in donations without basis. Eight people were arrested.
Rade Basta, a former economy minister and onetime director of the public utility Beogradske elektrane (Belgrade Power Plants), was arrested today on orders of the Special Department for the Suppression of Corruption at the Higher Public Prosecutor’s Office in Belgrade. Seven other people were arrested with him. In a statement, the Interior Ministry (MUP) says the suspicion concerns abuse of office and money laundering linked to donations the company paid to associations and sports clubs. The arrests were carried out by the Anti-Corruption Service of the Criminal Police Directorate, along with searches of premises.
What Basta is accused of
Basta (born 1979) is suspected of continued abuse of office. According to the statement, from November 27, 2020, while he was director of the company, he issued ten decisions without basis to award cash donations to various associations, organizations and societies, totaling 14,100,000 dinars. These decisions, the statement says, ran contrary to the Decision on Assistance to Registered Associations, Organizations and Persons Not Employed at Beogradske elektrane.
Sources differ on when that period ended. The MUP statement, carried by Danas, Nova and Una, gives June 1, 2022, while Kurir and Mondo, relaying the prosecutors’ wording, give June 6, 2022.
On the basis of those decisions, donations of more than 100,000 dinars each were paid out. According to the statement, the payments were carried out by the company’s executive director for economic and financial affairs, identified as D. I. (59), although she knew the decisions and contracts were issued in breach of regulations. She is accused of abuse of office through aiding. Danas, citing the company’s website, reports that she held that post, while MUP gives only her initials. In the parts of the statement that have been published she is described in one place as a former executive director and in another as the current one, so it is unclear whether she still holds the position.
How the money allegedly ended up as cash
The other six people arrested are suspected of money laundering: Z. V. (49), B. M. (41), A. K. (37), M. G. (43), M. R. (41) and A. N. (50). Investigators believe that between June 18, 2021 and March 25, 2022, Z. V. agreed in advance with the responsible persons at five associations on how the donations would be returned. The associations are:
- Equestrian club “MBM2” from Belgrade (M. G.)
- Small-football sports association “KMF Solunac” from Sopot (B. M.)
- Basketball club “Sopot” from Sopot (A. N.)
- Sports association “X-Gym” from Mladenovac (A. K.)
- Sports association “Kobra” from Mladenovac (M. R.)
According to MUP, the scheme worked like this: association representatives submitted requests for donations to Beogradske elektrane, and as soon as the money reached the account, they withdrew it in cash. About 90 percent of the amount went to Z. V., and about 10 percent stayed with the association as a fee for receiving the money. Eight donations passed through this arrangement, totaling six million dinars.
The association representatives are suspected of either not accounting for the withdrawn cash in their books or accounting for it through other payments. The statement describes this as having “created the appearance of the donation being spent as intended”.
What the official statements do not confirm
The size of the damage in early reports differed from the official statements. RTS reported in the morning, citing unofficial information, damage of several tens of millions of dinars. The official statements put the disputed donations at 14.1 million dinars, of which six million is tied to the money laundering charge.
Kurir claims, without official confirmation, that Basta was detained at Nikola Tesla Airport while trying to leave Serbia. The MUP and prosecutors’ statements do not mention this. By evening there had been no public reaction from Basta or his lawyer.
From utility director to minister
Basta was director of Beogradske elektrane from September 2018 to 2022. He became economy minister in late October 2022 as a member of United Serbia, and in mid-June 2023 the National Assembly dismissed him under an urgent procedure, on the initiative of the Socialist Party of Serbia (SPS) and United Serbia. His dismissal followed his demand that the government urgently state its position on imposing sanctions on the Russian Federation over its aggression against Ukraine. He then founded the “European Path” movement and was expelled from United Serbia.
Before that he was vice president of United Serbia and president of its Provincial Board, a member of parliament, a councilor in the Novi Sad City Assembly and deputy provincial secretary for energy, construction and transport.
All suspects have been ordered held for up to 48 hours, after which they will be brought, within the legal deadline, before the Higher Public Prosecutor’s Office in Belgrade, specifically its Special Department for the Suppression of Corruption. The presumption of innocence applies to all suspects until guilt is established by a final court ruling.
