Budget Inspection Reveals €2.3 Million in Current Liabilities

The budget inspection in Tivat has clarified financial obligations for the year 2020, determining that the reported amount of €3.5 million does not reflect unfulfilled debts. Instead, a thorough examination revealed that the actual current liabilities amount to €2.3 million. This finding emerged from the Budget Inspection report for 2025, which followed a request from the Special State Prosecutor’s Office (SDT).

A six-month oversight was conducted to assess the municipality’s fiscal activities. According to the SDT’s 2024 report, during 2020, the municipal treasury reportedly suffered a loss of €3.5 million due to outstanding liabilities classified as overdue. However, the Budget Inspection’s report indicates that this figure pertains to active current obligations rather than debts as initially claimed.

The inspection, which identified four irregularities, was described as complex. Inspectors examined compliance with the Law on Financing Local Self-Government, verifying the legal and intended use of funds and the status of outstanding obligations in accordance with Tivat’s 2020 budget decisions.

The identified irregularities pertained to Article 49 of the Law on Financing Local Self-Government. This article stipulates that the municipality may only incur debt if the repayment does not exceed 10% of the current revenue from the previous year, requiring prior approval from the government for any borrowing. The inspection highlighted instances of exceeding these limits or failing to follow the necessary procedures for obtaining consent for accrued obligations.

Inspectors instructed the municipality to align its records and documents with the actual financial situation. Although the Law on Budget Inspection allows for the recovery of funds into the budget, the report notes that a precise procedure for implementing this measure is still pending, awaiting amendments to the Law on Budget and Fiscal Responsibility.

The effectiveness of the inspection will be evaluated in future oversight activities. The document states that in 2026, inspections will commence to determine the implementation of measures mandated during routine or extraordinary oversight, with results from these inspections to be documented.

From August 2018 to October 2020, the role of Tivat’s mayor was held by Sinisa Kusovac of the Democratic Party of Socialists (DPS). Following him, Zeljko Komnenovic from the People’s Party took office.

In 2025, Tivat was one of 18 entities subjected to inspection. The Budget Inspection also reviewed the customs administration, the Clinical Center of Montenegro, and four primary schools, among others. The inspection also encompassed various ministries, including Economic Development and Tourism, as well as the State Archive of Montenegro.

It is noteworthy that the Budget Inspection operated with a reduced staff in 2025, comprising only three inspectors, including the chief inspector, for the entire country.