Documents tarnish Montenegro's EU bid
An investigation by the BBC and the Organised Crime and Corruption Reporting Project (OCCRP) has uncovered documents which cast serious doubt on plans for the tiny Balkan nation of Montenegro to join the European Union.
Montenegro is an official candidate to join the EU and accession talks begin next month. This is despite concerns about allegations of political and financial corruption, which have led to the country being described as a "mafia state" - a claim which is forcibly rejected by the Montenegrin government.
The country has no currency of its own and has already unilaterally adopted the euro, despite concerns from Brussels. It is expected to be in the next batch of nations to join the EU after neighbouring Croatia becomes a member next year.
Montenegro's former Prime Minister, Milo Djukanovic, who is still president of the country's ruling party, was investigated by the Italian anti-mafia unit and faced charges over a billion-dollar cigarette smuggling operation based in Montenegro. Those charges were eventually dropped in 2009. As head of state, Mr Djukanovic had diplomatic immunity.
Now documents seen by the BBC raise further concerns about the man described as the "father of the Montenegrin nation".
An audit by accountants Price Waterhouse, carried out in 2010, raised questions about the running of the country's Prva Banka, or "First Bank", which is controlled by the Djukanovic family. The audit suggests that most of the money deposited at the bank came from public funds, while two thirds of the loans it made went to the Djukanovics and their close associates.
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Last week the European Commission gave the go-ahead for accession talks to proceed next month. But it warned: "Corruption is still an issue of serious concern."
It said it would continue to monitor the country's progress as it approached accession.
The accession of the Balkan countries remains a key priority for those in charge of European expansion, and Prime Minister Luksic is hoping the talks will allow him to show the country is changing for the better. But for the government's critics, there first needs to be accountability for the alleged crimes and misdemeanours of Mr Djukanovic's two decades in power.
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