Please note that a forum on white collar crime was organised by the Centre for Education in Judiciary, which operates under the wing of the Justice Ministry, not by the Association of State Prosecutors, as stated in Tuesday's copy in para 2.

STA, 5 November 2019 - White-collar crime in the usual sense is on decline in Slovenia, while corruption is on the rise, State Prosecutor General Drago Šketa said on Tuesday. Prosecutor Boštjan Valenčič believes this is so because "corruption is still socially acceptable".

Addressing a two-day forum on white collar crime hosted by the Centre for Education in Judiciary, Šketa called corruption a "systemic anomaly", which should be prevented by state mechanisms.

He gave corruption in healthcare as an example, saying that criminal proceedings were being launched for acts committed ten years ago. "Supervisory mechanisms should have detected those anomalies right at the start."

Valenčič, a prosecutor at the Specialised State Prosecution, said that case law was gradually being created for white collar crime.

Responding to public criticism that "the big fish always get away with it", he said that certain "big fish" were serving their sentences at the moment, while some had been found not guilty by courts.

He said a reason why the procedures in high-profile cases took so long was outdated legislation, which did not envisage cases of such complexity and so many suspects.

Another reason is that Slovenia did not have a specialised court for dealing with white-collar crime cases, Valenčič said.

This was echoed by former State Prosecutor General Zvonko Fišer, who was critical of the changes to the penal code and the criminal procedure act made in recent years. "These are complex laws, which need to be consistent. Our current approach, changing the law over individual cases, does not lead to good solutions," he said.

The prosecutors also touched on the confiscation of assets of illicit origin act, which was watered down by a Constitutional Court decision that the law cannot apply for assets gained before the passage of the law.

They agreed Slovenia should follow the example of Italy, which has an instrument called preventive confiscation, which is not bound to a concrete criminal act. This mechanism has also received a green light from the European Court of Human Rights.

Fišer was also very critical of the recently launched inquiry into the prosecution of Franc Kangler, the former Maribor mayor.

"The fact that parliament ordered an inquiry to establish political responsibility of judges and state prosecutors in concrete criminal cases is a first-class scandal," he said.

He was also critical of the fact that neither the president, prime minister nor justice minister reacted to this. "I don't expect them to defend any individual decisions of the judiciary, but they should say that in a democratic country investigating the political responsibility of judges and prosecutors is a no-go," he said.

The covers and editorials from leading weeklies of the Left and Right for the work-week ending Friday, 18 October, 2019

Mladina: Puzzled by inaction in corruption cases

STA, 18 October 2019 – Mladina, the left-wing weekly, takes a look at several cases of alleged corruption and wrongdoing, wondering how it is possible that none of the involved politicians has been found guilty, while an ordinary citizen would definitely be punished or at leased fined for similar crimes.

The weekly's editor-in-chief Grega Repovž lists on Friday a number of cases related to Ljubljana Mayor Zoran Jankovič, SDS leader Janez Janša, former Maribor Mayor Franc Kangler and former Koper Mayor Boris Popovič after TV Slovenija has recently run a story about Janković's old suspicious cases.

"Entire Slovenia has been witnessing these developments for years, and we all have a clear picture of things. We are also all aware that the destiny of an average Joe would have been sealed long ago, either with a prison sentence or at least a fine."

Repovž wonders why nothing has happened in these cases. Is it because of judges, are there too few of them and are they busy with other trivial cases, is it how the courts are organised, are there two few specialised prosecutors and experts on corporate crime, corruption and political corruption, do judges and prosecutors lack proper training.

Is it the fact that the professions of judge and prosecutor are ever less prestigious, or is it poorly written and dated legislation, the magazine wonders.

Meanwhile, the defendants are usually well off and can afford the best of lawyers and advisers who can dedicate hours and hours to their case, whereas for a prosecutor or a judge, this is just one in hundred cases and court hearings. Mladina also points a finger at the Constitutional Court for having annulled, to the benefit of the defendants, any attempt to tighten up legislation.

"This is all true and remains the basic challenge for Slovenian society, in which it is increasingly hard to believe. But for a society to be fully functioning, people have to believe in it," says Repovž.

He wonders how people should decide in such cases - along political lines or personal alliances. "Should people turn a blind eye to Janković because he is allegedly a good mayor or simply because he is at the helm of Ljubljana, because having an SDS mayor would make everything automatically worse?"

Repovž also wonders in his editorial headlined First-Rate what one should think when no other than Janša and Kangler attack Janković in a rally in the centre of Ljubljana saying he gets a preferential treatment by courts "because he is a first-rate citizen".

Demokracija: Reputation of Slovenia's top court compromised

STA, 17 October 2019 - The right-leaning weekly Demokracija argues in the latest commentary that constitutional judge Matej Accetto should step down because he undermined the court's reputation and authority after it transpired that he failed to disqualify himself for decision-making despite his ties with the Modern Centre Party (SMC).

Under the headline the Case of Judge Matej Accetto, editor in-chief Jože Biščak writes that the e-mails released this week prove that Accetto made extensive proposals and opinions in the creation of the SMC's platform in 2014 and acted as a "tacit supporter" for the party of Miro Cerar.

Biščak notes that Accetto has been involved in decision-making on two political cases, the 2017 referendum on the Koper-Divača rail track and the foreigners act, both of which had to do with what was the ruling party in the previous term.

The Constitutional Court rejected a request for the judge's recusal at least two times, satisfied with his explanation that he was not involved in the work on the SMC platform.

Biščak notes the Constitutional Court's key role for the country's rule of law, freedom and democracy, saying that the public's trust in its rulings depends on the judges' ethical conduct, and its belief that the judges are unbiased, independent and fair.

"Judge Matej Accetto trampled all that, he tarnished the reputation of the Constitutional Court. No one would take a grudge against him if he had recused himself in the mentioned (political cases). He would have demonstrated the high standards he abided by himself and could have expected the same from his colleagues.

"As it is, he lied not only to fellow judges but also to parties in procedure and the entire public. Now that it has all come to light he should resign. Irrevocably ... His is not just a case of likely bias but of political and ideological bias par excellence."

All our posts in this series are here

STA, 10 October 2019 - The specialised state prosecution dealing with the most demanding while collar crime and corruption cases has lodged two new indictments against Ljubljana Mayor Zoran Janković, the web portal MMC reported on Thursday. He is allegedly suspected of tax evasion and abuse of office.

The first case dates back to 2006, with the prosecution suspecting that the former CEO of retailer Mercator performed a series of complex business transactions in order to evade taxes by selling 47,000 Mercator shares through a company owned by his sons.

Investigators believe that the company was actually controlled by Janković at the time and that he was the actual owner of shares that he parked at the Electa Inženiring company until he sold them.

According to MMC, charges were filed against three persons and a legal entity in this case last week.

The second case goes back to 2009, when Janković is suspected of abuse of office to acquire EUR 1.4 million in illegal gains for Grep, the main constructor of Stožice sports park.

Moreover, he is suspected of document fabrication to allow Grep acquire a EUR 5.5 million loan from Banka Koper. Charges have been filed against five persons and a legal entity, the names reportedly include former Deputy Mayor Jadranka Dakić and Uroš Ogrin and Zlatko Sraka of Grep.

The covers and editorials from leading weeklies of the Left and Right for the work-week ending Friday, 27 September

Mladina: If Germany can rescue its companies, why can't Slovenia?

STA, 27 September 2019 – Mladina, the left-wing weekly, criticises Slovenian governments for failing to protect the interests of Slovenian companies, including Adria Airways, saying they usually give EU rules as an excuse not to act, whereas engines of capitalism such as Germany always help their companies. What is more, they are indirectly buying Slovenian companies.

Due to the government's inactivity, nearly 600 Adria staff will lose their jobs and at least another 600 jobs will be lost indirectly, while the budget will suffer a loss of EUR 20 million, the weekly says in its editorial on Friday.

When Economy Minister Zdarvko Počivalšek met on Wednesday a group of Adria workers who are seeking a solution, he said the state was not indifferent to its troubles, and mentioned Adria's irresponsible owner, which had put at stake the company's operating licence.

But it is surprising he became aware of Adria's troubles only now when the rest of Slovenians realised how deeply in trouble it was much earlier, and that he forgot to mention he was the economy minister in the Miro Cerar government, which sold Adria to Germany's 4K Invest in 2016.

At the time, the government argued the sale would enable Adria to "develop, expand and provide for Slovenia's new links to the world", and those who warned this would not be the case because Adria was sold to a speculative venture capital fund were said to be ignorant of the very basics of capitalism.

When Počivalšek visited Adria, Germany announced it would help the airline Condor get a loan to prevent its bankruptcy. Two days before the German rescue effort, former Adria director Peter Grašek proposed a similar solution for Adria to the Slovenian government.

But the government is actually not seeking a solution, it is waiting for the situation to calm down so that it may start pointing fingers and complain about its hands being tied by EU rules. Yet, the same rules do not prevent Croatia or Estonia to help their airlines, or Germany to immediately rescue an airline or car factory when in trouble.

Mladina says that Slovenia's national airport operator Aerodrom Ljubljana was not sold just to any company in 2014, it was sold to Germany's Fraport, which is indirectly in majority ownership of Germany.

"Isn't it strange that we are being constantly told it is vital to sell companies and banks for the state to be successful and efficient, while at the same time it always turns out that the countries which are considered the culmination of capitalist efficiency and success, are buying our companies and banks?"

What is more, they purchase our companies in collaboration with their private companies, Mladina says, noting Fraport is partly owned by Lufthansa, the airline which will most certainly take over Adria's business.

Mladina says it is clear Počivalšek knew Adria was sold to speculative funds which would drain it. And as prime minister, Alenka Bratušek also knew airport operator Aerodrom was actually bought by the German state.

"She also knew that as soon as the national airport is sold, there will be an end to the complementarity between the airport and Adria, which will be fateful for Adria in five years' time," editor-in-chief Grega Repovž says in They Knew.

Reporter: Bratušek attempting power grab in corrupt energy sector

STA, 23 September 2019 - The right-wing weekly Reporter says in Monday's commentary that a recent failed attempt by Infrastructure Minister Alenka Bratušek to be given the final word in the appointment of executives at two state-owned energy companies had not been about wanting to end rampant corruption but merely about trying to seize control over it.

While managing to subjugate SODO, the state-owned electricity distribution system operator, to the government in this way, Bratušek failed to get same statue change proposals passed by the government last week for ELES, the transmission system operator, and for power market operator Borzen.

While Reporter's editor-in-chief Silverster Šurla says that Bratušek, whose proposal had been rejected by Pensioners' Party (DeSUS) president and Defence Minister Karel Erjavec while the remaining ministers abstained, should in fact be believed when she speaks of rampant corruption in the sector.

However, in any normal state accusations of such gravity as the ones issued by her would immediately be examined by authorities specialised in the prosecution of organised crime.

"The minister should report these things to the police immediately and share everything she knowns, including with all the names," Šurla says.

He argues Bratušek has not done that because she is part of one wing of the energy lobby herself. The two wings are engaged in a struggle for the executive posts and thereby for control over the bountiful money flow in state-owned energy companies.

Šurla says under The Fox and the Sour Grapes that Bratušek "is a cunning political fox, who will stop at nothing to reach her goals and is possibly even ready to bring down the government".

All our posts in this series are here

STA, 25 September 2019 - Responding to the scandal involving millions in contentions payments at the University of Maribor, the SVIZ teachers' trade union urged Chancellor Zdravko Kačič to consider resigning for failing to immediately present all the facts to the public and notify the police of potential irregularities.

By resigning, Kačič would facilitate a process in which the payment of some EUR 50 million would have to be cleared up, the union said on Wednesday.

"It is completely unacceptable that the chancellor of the public university Zdravko Kačič did not immediately notify oversight institutions and law enforcement of the findings of the audits into fees payments and of other irregularities which point to suspicion of crime and liability for payment of damages," it said in a release.

The union believes that by failing to act on time, Kačič, chancellor since June 2018, is responsible for major damage the scandal has caused to the country's second-largest public university and its staff.

The SVIZ recalled that a few years ago, the Supreme Court had ruled the university's pay system was unsuitable, failing to remunerate staff in line with academic titles.

The university thus broke the law and saved a lot of money on the back of many of its junior staff, while its elite has been receiving indecent fees, the SVIZ said.

Responding to the appeal, Kačič said he had acted as soon as he received the report, so there was no need for his resignation. "I didn't 'misplace' the document, forget about it or conceal it ... but immediately started dealing with it," he said in a release.

He reiterated that he checked the document, which is neither an audit report nor a legal or expert opinion, on 20 June 2018, the day he took office, then talked to auditors to discuss reviewing the financial transactions, presented it to deans in January and then handed it to university members for comments.

"I kept the university board up to date on all steps and handed all the papers on 9 May to an independent institution for a comprehensive review and a final audit report, which will serve as a basis for the university to take action," the chancellor explained, adding the final report is expected next month.

The SVIZ trade union also called on Education Minister Jernej Pikalo to ask the Court of Audit to review the university's financial operations.

Also responding to the scandal, the VSS trade union of university teachers said it expected Kačič to present documents proving the payments were justified and to sanction the cases when staff had abused office for personal gain.

The VSS urged the state as the founder of the university to change legislation and improve oversight to prevent such cases and to enable science and university education to develop even if they brought no short-term profits.

The head of the VVS shop at the university, Marija Javornik Krečič, said university staff was both disappointed and shocked at the controversial fees.

While the media report about payments worth millions of euro, the trade union had to fight legal battles for proper pay of many of university staff, she said.

The alleged abuse is not just a result of vague rules, but of their disrespect coupled with wild corporate logic penetrating universities and some university teachers appropriating certain faculties and areas of research.

Yesterday, Kačič came out strongly against Friday's media report questioning around EUR 50 million euro in payments to its professors through works contracts.

He said the TV Slovenija report was based on incomplete facts from two reports rather than on audits as stated by TV Slovenija.

The chancellor said he had not been acquainted with the 2017 report by the previous leadership, while he knew about the second one from February 2018.

While stressing that neither had found any irregularities, but merely pointed to potential risks, Kačič said he would present the second report once it was reviewed by an independent institution and became final. Only then would the university take action if necessary.

As for the sum of EUR 50 million, Kačič said it referred to the works contracts for the entire period between 2010 and 2016.

STA, 24 September 2019 - University of Maribor Chancellor Zdravko Kačič has come out strongly against a recent media report questioning some EUR 50 million in payments to its professors through works contracts. He said on Tuesday that Friday's TV Slovenija report was based on incomplete facts, but did affect the reputation of the country's No. 2 public university.

According to the broadcaster, auditor Ernst & Young found rather high payments to university professors and the university and its faculties' deals with companies suspicious in March 2017.

Some professors received almost EUR 30 million in various fees and another EUR 20 million was paid to university staff who were treated as external staff, TV Slovenija said.

Kačič told the university's senate the media report was based on two reports commissioned by the former chancellor with Ernst & Young - Consulting, Tax Consulting, and not with an auditor. The first was made in 2017 and the other in February 2018.

"Neither found any irregularities in the university's financial operations, but merely pointed to potential risks," said Kačič, who was in charge of the university's finances under the previous leadership.

When he became chancellor in June 2018, Kačič was not acquainted by predecessor Igor Tičar with the first report, but he did receive the second one.

After presenting it to the deans and demanding explanation from faculties, he handed all the papers to "a neutral institution to comprehensively review it and prepare a final report, which will serve for further action", he explained.

Earlier this year, the chancellor said the Institute for Business Accounting had been asked to give its final opinion. Its findings should be known next month.

"If qualified experts find irregularities ..., university institutions will take action," the chancellor's office said in a release after the senate's session.

Kačič said the idea was to present the second report to the public once it became final and contained proper findings and recommendations for further action.

As for the sum of EUR 50 million, Kačič said it referred to the works contracts for the entire period between 2010 and 2016.

"There are many such contracts. For instance, the professors teaching at the Faculty of Medicine are originally employed at the UKC Maribor hospital," he said in reference to the media report that some university staff had been treated as external staff (outsourcing) in receiving payment for their services.

Works contracts are also used for work on different projects, including for university-business ones.

"The payments on the basis of works contracts for University of Maribor staff for 2011 to 2016 amounted to EUR 21.2 million, not EUR 50 million," Kačič's office said.

"We don't want to sweep anything under the carpet, but it is inappropriate to jump to conclusions on the basis of incomplete facts," the chancellor said.

STA, 21 September 2019 - Some EUR 50 million in payments to University of Maribor professors through freelance contracts is contentious, an issue auditor Ernst & Young highlighted back in March 2017, according to last evening's report by TV Slovenija.

It was very high payments to university professors and the university and its faculties' deals with certain companies that Ernst & Young found rather suspicious.

According to TV Slovenija, some professors received almost EUR 30 million in various fees.

Another EUR 20 million was paid to university staff who were treated as external staff (outsourcing).

Five million euro went to various suppliers connected with the university.

The auditors warned of a number of possible irregularities, including tempered calls for applications, tax evasion and fictitious payments.

They even urged a criminal investigation in some cases, according to the public broadcaster.

To double check Ernst & Young's findings, then Chancellor Igor Tičar commissioned a forensic audit, but before he could present its findings to the university's board, he had to retire.

"In line with the law, my contract terminated as of 2018, and I've had no information about what is going on ever since," he explained.

The audits were then shelved until they have recently been sent to some e-mail addresses, according to TV Slovenija.

Opposition Democrat (SDS) MP Anže Logar, who chairs the parliamentary Commission for the Oversight of Public Finances, said he had alerted the Education Ministry, Court of Audit and police about the case and "now I'm waiting for their answers".

Education Ministry State Secretary Jernej Štromajer said one should get to the bottom of the case to make sure public universities spend funds transparently.

When Chancellor Zdravko Kačič, who was in charge of finances at the university at the time, commented the allegations of irregularities the last time in June, he disputed Tičar and the auditors' views.

"We've decided to do another ... audit and we've asked the Institute for Business Accounting ... to give its opinion," he said.

Kačič was now unavailable for comment for TV Slovenija, which reported that the case would be discussed by the university's board later this month.

The case is also being processed by the Court of Audit and investigated by law enforcement.

TV Slovenija said the Education Ministry was waiting for a report from the university, which it should get by the end of September, before it took action.

STA, 18 September 2019 - Police are looking into three cases of simplified debt restructuring that would allow companies owned by Ljubljana Mayor Zoran Janković's sons to write off about EUR 29 million in debt. The General Police Administration confirmed the news for the STA on Wednesday.

"Police are checking certain circumstances in these cases and if we find grounds to suspect that a criminal act was committed ... we will act accordingly," the Police Administration said after the newspaper Finance reported on the matter.

The news of the write-off of the debt by the companies Electa Inženiring, Electa Naložbe and Electa Holding, owned by the mayor's sons Damijan and Jure Janković, has provoked public outcry and led to calls to change bankruptcy law.

Simplified debt restructuring was originally designed to speed up bankruptcy procedures for small firms and sole proprietors, but the rules are so lax that even companies with millions in assets, including financial holdings such as Electa Holding, can take advantage of the procedure.

The decisions on simplified debt restructuring for Electa Inženiring and Electa Naložbe have become final, while in the case of Electa Holding, the Ljubljana District Court is challenging the decision in its capacity as a claimant over unpaid court tax. The appeal will now be deliberated on by the Ljubljana Higher Court.

According to Finance, in all three cases, the decisions on simplified debt restructuring had been made thanks to debtor-friendly companies owned by Jan Bec, who has purchased the claims that one of the creditors, Heta Asset Resolution, had to the three companies. Thus he had the main say on the future procedures.

Web portal Siol.net also reported today that the Notary Chamber is checking the work of notary Miro Košak in the three cases. Košak made all the notary work related to the debt restructuring procedures.

The question is whether Košak acted with due care and made sufficient effort to stop the manoeuvres with which Damijan Janković planned to achieve the debt write-offs, Siol says.

Notaries are also obligated to report any suspicion of a crime.

The portal also suggests that Košak must have known that some of the biggest creditors of Electa Inženiring, Electa Naložbe and Electa Holding were in fact controlled by Damijan Janković, which means that the simplified debt restructuring should not be valid.

STA, 28 August 2019 - The chief supervisor of the Official Gazette, Irena Prijović, has reported the secretary general of the senior coalition Marjan Šarec List (LMŠ) Brane Kralj to authorities, claiming he had instructed her to appoint former Court of Audit head and MEP Igor Šoltes as the gazette's new director. PM Šarec said he expects Kralj to provide an explanation.

 Prijović, who reported Kralj to the Corruption Prevention Commission and to state asset custodian SSH as the gazette's owner that had appointed her, confirmed for the STA on Wednesday the authenticity of a document in which she claims pressure had been exerted on her "regarding the choice of director".

The document, sent by her to the SSH and first published by the editor of the online tabloid Pozarerport Bojan Požar, says she had received on 21 August a call from Kralj who ordered her that "the state expects the appointment of Igor Šoltes as director of the Official Gazette".

#Požareport - Ekskluzivno razkritje:
Kako je "vaški fant" Brane Kralj, generalni sekretar @StrankaLMS, v imenu države zahteval imenovanje @isoltesEP za direktorja Uradnega lista!
Več: https://t.co/QlonYERkEU @vladaRS @sarecmarjan pic.twitter.com/R6uJVwyxcQ

— BojanPožar (@BojanPozar) August 29, 2019

Kralj is said to have also demanded that she "report on the staffing procedure directly to him without and before any communication with the SSH".

While she intends to provide additional explanations on Thursday, Prijović said that "it is now the turn of other institutions and those affected to take action".

In a brief first response, Šarec said he expected Kralj to provide an explanation regarding the accusations by Thursday.

Kralj later told the STA he had indeed called the supervisor, but only to tell her that Šoltes was a good candidate.

"I called Ms Irena Prijović and mentioned that Igor Šoltes might be a good candidate for director of the Official Gazette. I regret her perceiving that as pressure, the purpose of my call was merely to say that I thought of him as a good candidate as former president of the Court of Audit and DeSUS candidate in the EU election," Kralj said.

He would not comment on whether he will resign.

Šoltes had been the leading candidate of the junior coalition Pensioners' Party (DeSUS) in the May elections to the European Parliament, but failed to get re-elected. He applied for the top post at the Official Gazette as part of a call for applications.

The appointment procedure is still ongoing, with Prikovijić, who is also the executive director of the Slovenian Directors' Association, explaining the selection date had not yet been set.

STA, 10 April 2019 - The University of Ljubljana has been ordered again to repay EUR 781,000 paid out in unwarranted standby bonuses to employees between 2012 and 2015 after the case was tried again, the national radio reports.

According to Radio Slovenija, the ruling, delivered by the Ljubljana District Court, is not yet final. It comes after the same court already ordered the university to repay the funds in 2017 but the Higher Court ordered a retrial.

The standby bonuses scandal at the University of Ljubljana erupted late in 2015 after an audit found that nine out of eleven colleges inspected paid out a total of EUR 781,000 in standby bonuses unlawfully between 2012 and 2014, allegedly to circumvent austerity measures.

The biggest offender was the Faculty of Economics, which adopted rules on such payments when its dean was Dušan Mramor, who later staunchly advocated austerity as finance minister in the Miro Cerar government. Mramor was also one of the recipients, along Maja Makovec Brenčič, who served as education minister in the Cerar government.

Mramor and his faculty associates are on trial in a separate case.

Unofficial reports alleged that a total of EUR 1.5m had been paid out between 2012 and 2015, but the colleges were not required to return the money they had secured from other sources.

The Education Ministry claimed the EUR 781,000 of its funding back arguing in the trial the money had been paid out ineligibly. The university insisted on its argument that the colleges paid out the bonuses from the funds they earned in commercial projects, rather than from public funds.

The university's lawyer, Dino Bauk, told the STA in March that the proof offered by the university was that the bonus- paying colleges generated more than EUR 86m in the market at the time, part of which was spent on their public activities. The university received EUR 16m less for those activities from the ministry. Bauk said at the time the university would appeal again should it lose the case.

All our stories on the University of Ljubljana can be found here