KOSOVO: SUBSTANTIAL NUMBER OF SERBS RETURN TO

C O N F I D E N T I A L SECTION 01 OF 03 PRISTINA 000520

SIPDIS

SIPDIS

DEPT FOR EUR/SCE, SCRS, DRL, INL, PRM, AND S/WCI, NSC FOR
BRAUN, USUN FOR SCHULETOWSKI, USOSCE FOR STEVE STEGER

E.O. 12958: DECL: 07/02/2017
TAGS: EAID PGOV PREF PRM YI
SUBJECT: KOSOVO: SUBSTANTIAL NUMBER OF SERBS RETURN TO
FERIZAJ/UROSEVAC AREA

REF: PRISTINA 404

Classified By: CHIEF OF MISSION TINA KAIDANOW FOR REASONS 1.4 (b) and (
d)


1. (SBU) SUMMARY. A total of 82 Serb villagers from Srpski
Babush, located in Ferizaj/Urosevac municipality, returned to
their recently-reconstructed homes on Saturday, June 23.
Greeted warmly by Ferizaj Mayor Faik Grainca, most returnees
told us they are happy with their homes, but some unresolved
demands for additional UNDP contributions by village leader
Novitsa Jovanovic remain. While this large-scale return to
the largest PISG-funded return project to date is welcome,
Jovanovic's threats to depart if these issues are not
resolved leave some doubt as to its sustainability. US KFOR
is keeping close watch on the returns area and assisting not
only with security but with basic living conditions, as well.
END SUMMARY.

BACKGROUND


2. (SBU) Costing some 2.4 million euros, the reconstruction
of Srpski Babush village (40 kilometers south of Pristina in
Ferizaj/Urosevac municipality) is the largest PISG-funded
returns project to date (reftel). Reconstruction of 74 homes
and a school was completed in December 2006, but residents
expressed dissatisfaction with the condition of the homes and
demanded additional funds for furniture and income
generation. Officials from UNDP and the PISG Ministry of
Communities and Returns cited pressure from former Returns
Minister Petkovic, a Serb fired by PM Ceku for corruption, as
the key factor preventing returnees from occupying their new
homes. (Note: Petkovic was reportedly trying to prevent the
project from succeeding without him, according to UNDP
sources. End note) Nonetheless, 82 Serbs returned June 23
with KFOR and Kosovo Police Service (KPS) escorts, where they
were greeted by Ferizaj Mayor Grainca.

TERMS AND CONDITIONS


3. (SBU) UNDP Project Development Coordinator Michael Dixon
provided USOP with a summary of the terms of this project.
Seventy five families were to be accommodated in 74 homes
(one duplex),and allowed to select 800 euro worth of
furniture and appliances. (Note: No element of this plan
provided for direct cash payments to returnees. End Note).
Only 11 families chose to come and select their furniture in
April 2007. Additionally, UNDP (working through the NGO
European Perspective, or EP) developed a plan for income
generation, with a pre-set cap of 2,000 euro worth of
equipment per household. The plan was put together by a
small Serbia-based NGO ("Synergy"),headed by village leader
Novitsa Jovanovic, for which he was paid around 3,000 euro
for a fairly detailed plan centered around a chicken farm and
agricultural equipment.

OVERALL SATISFACTION; NO VANDALISM...


4. (SBU) During a USOP visit to the village June 25 and
numerous UNDP visits from 23 June to date, returnees have
expressed overall satisfaction with the quality of their
homes. Poloff met a group of returnees outside the school
building; they initially expressed gratitude for their houses
and for USOP's attention. However, some had been sleeping on
the floor while delivery teams worked to get furniture in all
the homes. (Note: Dixon told us that, in his view,
responsibility for any delays in furniture delivery lies
primarily with the large number of returnees who failed to
participate in the April selection process organized by UNDP.
End note) Some residents complained to us that their homes
lacked water and/or power, but reports from June 23 and 27
indicated that these issues had been resolved and/or never
existed to the extent claimed. Srpski Babush has suffered
practically no economically-motivated thefts of new equipment
and furniture nor any vandalism. When Poloff asked the crowd
of Serb returnees why they thought this was so, one older
villager answered "this is because we have good (Albanian)

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neighbors here." Additionally, UNDP told us that KFOR had
done an "exceptionally good job" keeping an eye on the
village since reconstruction finished. US KFOR commander BG
Earhart confirmed to COM July 4 that his troops were keeping
a close eye on the returns and not only maintaining security
but assisting with deliveries of goods and necessities to the
villagers.

...TEMPERED BY ADDITIONAL DEMANDS


5. (C) Despite the agreement with UNDP and the Serbs'
overall satisfaction, the returnees, led by Jovanovic, have
continually demanded more, most notably income generation
equipment far in excess of the 2,000 euro per-family (150,000
total) limit; UNDP's estimate of Jovanovic's total demand for
income generation equipment is roughly 225,000 euros. Dixon
told poloff that Jovanovic himself requested 5,670 euro worth
of computer and office equipment for his mother's house, and
thinks Jovanovic may be trying to expand his NGO operations
in this way. Dixon also said that UNDP will not provide
income generation equipment in excess of the 2,000 euro
limit, nor will it accept a demand that the
furniture/appliance limit be raised to 900 euros. Jovanovic
told poloff June 25 that the villagers would leave June 29
unless their demands were met; UNDP subsequently met with the
villagers and settled several issues, but Jovanovic
reportedly made further threats to leave. (Note: As of July
5, the returnees are still there, according to UNDP and OSCE
and no new deadlines/demands have been made. End Note).
Returnees arrived with only one bag each, came mostly without
their full families, and some have reportedly requested
housewares such as bedsheets and pillows, which OSCE
officials delivered July 4.


6. (C) When visiting the village, Poloff noticed that most
returnees appeared happier and more satisfied before
Jovanovic arrived to join the conversation, after which the
group became more confrontational as Jovanovic theatrically
enumerated problems with water, power, and furniture, and
then went on to list some of his additional demands to UNDP
for equipment. Dixon told Poloff that Jovanovic is a
"master" of such brinksmanship and has manipulated the
process from the beginning to try and compel UNDP to give the
returnees more than originally agreed.

POSSIBLE MOTIVES


7. (C) When asked his opinion about why this group had
returned, especially after such a long holdout, Dixon
speculated that former Minister Petkovic, now out of power,
might have reversed himself and pushed the group to come back
in an attempt to show his continuing usefulness. Dixon also
noted that current Returns Minister Branislav Grbic had been
much easier to work with than Petkovic, has fully supported
this return, and has displayed thorough understanding of the
construction and engineering issues involved with the
project. Poloff asked some villagers why they had come back;
one said that his 1.5 hectares in Kosovo would help
supplement his 4,000 dinar (roughly USD 66) per month pension
from Serbia.

COMMENT


8. (C) The complex mix of factors preventing large-scale
Serb returns to Kosovo remains an obstacle to progress in
this area (reftel). With the long-term intentions of the
Srpski Babush returnees unknown for now, and given the
complicating factor of Jovanovic's machinations, it is
difficult to assess the long-term sustainability of this
return. Still, indicators remain largely positive. Given
the relatively large size, high profile, and media coverage
of this project, it would be a significant development if
Srpski Babush returnees stayed and rebuilt their lives in
Kosovo. We will follow developments on this issue and
continue to encourage sustainable returns by supporting
reasonable needs and helping UNDP push back on unreasonable
demands.

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KAIDANOW