CLS ‘White Book’ Exposes Systemic Corruption in Belgrade, Outlining €140 Million in Potential Annual Savings

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The Center for Local Self-Government (CLS) presented its “White Book on Corruption in Belgrade 2023–2026” on Wednesday, characterizing the comprehensive report as a ready-to-act criminal complaint. Authors and legal experts at the presentation stated that while political capture currently paralyzes local law enforcement and the judiciary, the findings provide an immediate roadmap for future anti-corruption prosecutions.

According to CLS estimates, eradicating corruption within the capital’s municipal budget could save taxpayers up to €140 million annually.

A Captured System and Lack of Accountability

Former prosecutor Jasmina Paunović criticized the deep-rooted culture of impunity within public institutions, noting that the country has gone decades without a high-ranking official facing accountability for financial misconduct.

“Uncredible people are being appointed to highly credible positions because they are easily subject to political influence,” Paunović warned. “They are often blackmailed and agree to any political directive.”

Paunović also called out the Tax Administration for failing to properly audit properties and verify the origins of wealth among public officials.

The Mechanism of Municipal Monopolies

CLS Director Nikola Jovanović revealed the specific tactical patterns identified by the research team within Belgrade’s public procurement system:

  • Fictitious Competition: Public tenders in Belgrade average an abysmal 1.2 bidders per contest, with secondary bids often serving as mere formal placeholders to hide collusion.
  • Preferred Contractors: Nearly every public utility company operates with a designated “favorite contractor.”
  • Consolidated Control: A tight network of roughly 40 favored firms secures almost all high-value municipal contracts.

To dismantle this apparatus, CLS proposed structural legal overhauls, including the establishment of a Special Prosecution Office for High-Level Corruption, a dedicated prosecutorial police force, expanded powers for the State Audit Institution (DRI), and the criminalization of unjust enrichment.

Real-World Consequences: From Construction to Public Safety

Vanja Bajović, a professor at the University of Belgrade Faculty of Law, emphasized that corruption has moved past abstract financial loss, pointing to recent infrastructure failures to demonstrate that “corruption kills.” Bajović also highlighted how the uncontrolled expansion of real estate construction in the capital is heavily driven by money laundering, as illicit cash is easily hidden within volatile building costs.

Echoing these concerns, attorney Ivan Ninić described the current municipal governance as a total breakdown of institutional function, enriching a select few while depleting public resources. “They talk to us about flying cars and robots,” Ninić concluded, “while we are actively choking in corruption.”