Coal Mine Loses Millions in a Challenged Deal

A private Lukavac-based company signs contracts worth millions with public companies. It trades in oil, transport and construction, and it has a reputation as a successful company with tradition and experience.

Reporters from the Center for Investigative Reporting in Sarajevo (CIN) revealed how at least time times these business deals were illegal. In 2006, Junuzović-Kopex signed a deal with state-owned Đurđevik Brown Coal Mine thanks to a requirement according to which the bidders must have previous experience of doing business with the mine – one that many of the other bidders could not meet. A former manager of the mine included the requirement.

Even though its fuel was not the cheapest, Junuzović-Kopex was selected as supplier and made nearly 19 million KM from the deal. Members of the Procurement Review Body say that the requirement puts other bidders at a disadvantage. But owner Amir Junuzović disagrees.

The prosecutor’s office of Tuzla Canton found that the irregularities in the bidding procedure and illegalities in its execution have cost the mine nearly 2 million KM more than was necessary. This is why the office charged Šabić, Junuzović-Kopex, one of the firm’s and another of the mine’s employees last year.

Read the full story.

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