Identifier
Created
Classification
Origin
08SKOPJE155
2008-02-26 15:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Skopje
Cable title:
MACEDONIA: "BIG FISH" CONVICTED IN CORRUPTION CASE
how-toVZCZCXRO7422 OO RUEHAG RUEHAST RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA RUEHLN RUEHLZ RUEHPOD RUEHROV RUEHSR RUEHVK RUEHYG DE RUEHSQ #0155 0571501 ZNR UUUUU ZZH O 261501Z FEB 08 FM AMEMBASSY SKOPJE TO RUEHC/SECSTATE WASHDC IMMEDIATE 7114 INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE 0218 RUEAIIA/CIA WASHINGTON DC RUEKDIA/DIA WASHINGTON DC RUEKJCS/JOINT STAFF WASHINGTON DC RUEKJCS/SECDEF WASHINGTON DC RUESEN/SKOPJE BETA RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL
UNCLAS SKOPJE 000155
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/SCE, NSC FOR BERT BRAUN
E.O. 12958: N/A
TAGS: PREL PGOV KCRM KCOR NATO MK
SUBJECT: MACEDONIA: "BIG FISH" CONVICTED IN CORRUPTION CASE
REF: A. SKOPJE 153
B. SKOPJE 86
UNCLAS SKOPJE 000155
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/SCE, NSC FOR BERT BRAUN
E.O. 12958: N/A
TAGS: PREL PGOV KCRM KCOR NATO MK
SUBJECT: MACEDONIA: "BIG FISH" CONVICTED IN CORRUPTION CASE
REF: A. SKOPJE 153
B. SKOPJE 86
1. (SBU) Summary. In a landmark ruling, a Macedonian court
has convicted two high-profile defendants in a major
corruption case. A former National Bank Governor and a
controversial businessman were convicted and sentenced to
four-and-a-half-years imprisonment on February 25 for a
financial fraud case that allegedly cost the National Bank
$41 million. The convictions demonstrate that Macedonia's
courts are capable of successfully prosecuting even "big
fish" with past political ties to the current government.
End Summary.
High-Profile Corruption Case Ends In Convictions
-------------- ---
2. (SBU) On February 25, a Skopje court sentenced former
National Bank Governor Ljube Trpeski and high-profile
businessman Metodij Smilenski to four and a half years
imprisonment each on a corruption conviction. The defendants
also were ordered to return 22 million dollars to the state
in damages.
3. (U) In 2002, while Trpeski was National Bank Governor he
signed off on a guarantee for a loan to Smilenski's
Export-Import Bank. According to the prosecution, when
Smilenski's bank declared bankruptcy and the money could not
be recovered the National Bank was stuck with a loss of $41
million, while the National Bank money ended up in various
accounts controlled by Smilenski (ref B).
4. (SBU) The case was technically challenging due to the
complex financial transactions involved. It also was
politically sensitive given the defendants' high-profile past
ties with members of the ruling party. Smilenski was a close
associate of former VMRO-DPMNE Prime Minister Ljubco
Georgievski, while Trpeski is politically well-connected and
is related to current Deputy Prime Minister Zoran Stavreski.
5. (U) The defendants' lawyers have announced they will
appeal the court's decision. Trpeski will remain free until
the verdict goes into force, while Smilenski is already in
prison on other criminal charges. This is Smilenski's second
conviction in the past year, and he faces additional charges
in another pending criminal case.
Macedonia's Continued Progress On Corruption Fight
-------------- --------------
6. (SBU) The Macedonian court's ruling defied skeptics who
claimed that Trpeski was too well connected to ever be
convicted. The ruling demonstrated that the judicial system
can successfully prosecute corruption cases, even when the
defendants are wealthy and politically connected, and the
story received front-page coverage in all major daily
newspapers on February 26. The four-and-a-half year sentence
is also relatively long for a white-collar case in Macedonia,
and the order to repay the $22 million is a deterrent shot
across the bow that should give pause to other high-stakes
abusers of the public trust.
MILOVANOVIC
SIPDIS
SENSITIVE
SIPDIS
STATE FOR EUR/SCE, NSC FOR BERT BRAUN
E.O. 12958: N/A
TAGS: PREL PGOV KCRM KCOR NATO MK
SUBJECT: MACEDONIA: "BIG FISH" CONVICTED IN CORRUPTION CASE
REF: A. SKOPJE 153
B. SKOPJE 86
1. (SBU) Summary. In a landmark ruling, a Macedonian court
has convicted two high-profile defendants in a major
corruption case. A former National Bank Governor and a
controversial businessman were convicted and sentenced to
four-and-a-half-years imprisonment on February 25 for a
financial fraud case that allegedly cost the National Bank
$41 million. The convictions demonstrate that Macedonia's
courts are capable of successfully prosecuting even "big
fish" with past political ties to the current government.
End Summary.
High-Profile Corruption Case Ends In Convictions
-------------- ---
2. (SBU) On February 25, a Skopje court sentenced former
National Bank Governor Ljube Trpeski and high-profile
businessman Metodij Smilenski to four and a half years
imprisonment each on a corruption conviction. The defendants
also were ordered to return 22 million dollars to the state
in damages.
3. (U) In 2002, while Trpeski was National Bank Governor he
signed off on a guarantee for a loan to Smilenski's
Export-Import Bank. According to the prosecution, when
Smilenski's bank declared bankruptcy and the money could not
be recovered the National Bank was stuck with a loss of $41
million, while the National Bank money ended up in various
accounts controlled by Smilenski (ref B).
4. (SBU) The case was technically challenging due to the
complex financial transactions involved. It also was
politically sensitive given the defendants' high-profile past
ties with members of the ruling party. Smilenski was a close
associate of former VMRO-DPMNE Prime Minister Ljubco
Georgievski, while Trpeski is politically well-connected and
is related to current Deputy Prime Minister Zoran Stavreski.
5. (U) The defendants' lawyers have announced they will
appeal the court's decision. Trpeski will remain free until
the verdict goes into force, while Smilenski is already in
prison on other criminal charges. This is Smilenski's second
conviction in the past year, and he faces additional charges
in another pending criminal case.
Macedonia's Continued Progress On Corruption Fight
-------------- --------------
6. (SBU) The Macedonian court's ruling defied skeptics who
claimed that Trpeski was too well connected to ever be
convicted. The ruling demonstrated that the judicial system
can successfully prosecute corruption cases, even when the
defendants are wealthy and politically connected, and the
story received front-page coverage in all major daily
newspapers on February 26. The four-and-a-half year sentence
is also relatively long for a white-collar case in Macedonia,
and the order to repay the $22 million is a deterrent shot
across the bow that should give pause to other high-stakes
abusers of the public trust.
MILOVANOVIC