Belgrade city authorities award leasing contract to company close to ruling part

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The Belgrade city authorities and its communal service companies are leasing cars from a company owned by a businessman with ties to the ruling Serbian Progressive Party (SNS), Nova Ekonomija magazine reported.

The city authorities signed a leasing agreement with Auto Cacak and its subsidiaries worth some 230 million Dinars (1 Euro – 117 Dinars). The city‘s public procurement portal specified that contracts had been signed following a tender for the “operational leasing of passenger vehicles” with the Auto Cacak group of companies (Porsche Mobility, AKS Fleet Solution, Raiffeisen Rent and FLEET Partner) making the sole offer.  

Auto Cacak was awarded leasing contracts for passenger cars with several communal services companies and the city administration. The city procurement portal said the vehicles are “lower and medium class and include vans”.  

Auto Cacak, importer of Skoda vehicles for Serbia and Montenegro, is owned by Milenko Kostic. The current Mayor of the city of Cacak Milun Todorovic was CEO of Auto Cacak before being elected in mid-2016 according to the Business Registers Agency.  

Auto Cacak sold 710 vehicles to the Internal Affairs Ministry in 2017 but the value of that contract has not been made public because the government has classified it as secret.