Chronology of events concerning the Davinić affair

April-August - regular budget control which revealed:

• That the Ministry of Defence has spent 830 million dinars aside from the specified-purpose funds anticipated by the budget;
• That the obligations towards the suppliers have risen to 6 billion dinars (from the previous 2.8 billion dinars);
• That the suppliers are not being paid in chronological order (some of the suppliers from 2005. have already been paid, while those from 2002. still haven't);
• The debts for food are not being paid, while the funds are being spent for other purposes.

16 August - Mlađan Dinkić held a press conference in G17 PLUS, on which he stated: firstly, that there is a financial chaos in the Ministry of Finance, secondly, that things should be taken under control immediately, and lastly, that G17 PLUS nominates Aleksandar Radović for the post of assistant minister for budget and finance (at that time the issue was the chaos in the financial sector of the MoD due to the first report of the budget inspection, and there was no hint about detrimental contracts).

What had actually happened:

12 August - Mile Bogdanović from the Ministry of Defence gives a warrant to Milovan Andrić to phone colonel Jovica Vučković from the Headquarters, and ask for the warrants for the equipment worth 80 million euros.

• According to the law, the decision about the needs of the Army is made in the Headquarters , and then they contact the Ministry of Defence. In this case it was done vice versa: the Supply Board of the Ministry of Defence called the Headquarters. According to the internal regulations of the Army, Jovica Vučković must inform his superior officer, general Paskaš, which he did not do. The fact is that colonel Jovica Vučković does not have the authority to ask for a goods supply; that is in the authority of colonel Živanović, who was on vacation at that moment, so colonel Vučković was replacing him.

15 August - Jovica Vučković makes an equipment supply request from "Mile Dragić Production", and submits it to the supply authorities. In that request there are prices mentioned in American dollars, and they differ from those which were signed 10 days later:

Taking into account only the difference in the prices of these three products, the was damaged for 40 million euros. Even the original prices from this table do not correspond with the regular prices of "Mile Dragić Production".

18 August - There was a meeting at which the following were present: minister Prvoslav Davinić, secretary of the Ministry of Defence Milana Rakić, Chief of Staff Milan Đorić, and others. At this meeting they agreed that all the documentation should be prepared for the Ministry Council, and the mentioned total sum was 80 million euros (just like in the original request), while later, the contract was signed for 90 million euros.

19 August - colonel Jovica Vučković changes the request.

The price of the helmet in "Mile Dragić Production" - how it grew, chronologically:

• Manufacturing price: 65 euros
• Price with work and profit included: 165 euros (from the price list of "Mile Dragić Production")
• Jovica Vučković (15. August) gives an offer: 200 euros
• Kokanović, Davinić, and Marović raise and conclude: 250 euros

These contracts imply damage worth 40 million euros, and if the contracts were concluded, the total damage for Serbia would be more than 70 million euros.

Before contracts about any supply in the Army are concluded, there are two approvals that must be obtained: one from the Authorities for legal matters, and the other from the Budget authorities. Only one of these two approvals was obtained, and it was given by the Authoritioes for legal matters, while the Budget authorities pointed out that there were not enough money in the budget for such contract, that is, for such purposes.

22 August - On a telephone session Board of Ministers brings a decision about the supply of military equipment. This decision was not published in the Official gazette ("Službeni glasnik").

24 August - "Mile Dragić Production" responds to the offer. Colonel Milun Kokanović points out that they should ask for more offers from some other producer of military equipment.

25 August in the morning - Prvoslav Davinić concludes 5-year contracts with "Mile Dragić Production" for 300 million euros, immediately signing the contracts for the year 2006 (90 million euros), and 2007 (86 million euros).

Colonel Vukčević points out that the contracts should be concluded only after concluding the contract on technical and business cooperation between the Ministry of Defence and "Mile Dragić Production", which was not done.

Regulations violated:

• Law on the budget system, article 35 - that only what corresponds to the budget plan for that year can be spent, and not above that;
• Law on public supplies - which had previously been put in an awkward position by bringing the Regulation on movable things;
• The Regulation on movable things has also been violated, because it states that a commission must be formed to evaluate the supply - that commision has never been formed.

G17 PLUS PR Office