Former-TIDZ chief Despotovski probed over €10 million tender misconduct
- North Macedonia
Former-TIDZ chief Despotovski probed over €10 million tender misconduct
- Case Updated
- 12/2024
Case Summary
Phase
InvestigationOffence
- Abuse of functions
Sector
- Construction
- Public administration and defense; compulsory social security
Institution
- Directorate for Technological Industrial Development Zones (TIDZ) Skopje
- Ministry of Finance Public Procurement Bureau - Committee for Administrative Control
- State Commission for Public Procurement Appeals
- TIDZ Strumica
- TIDZ Štip
Involved people
- Politically exposed
- Yes
The Basic Public Prosecutor's Office in Skopje has launched an investigation into former TIDZ director Jovan Despotovski and seven other officials for allegedly abusing their positions to favour a company in a €10 million tender. Prosecutors claim that the suspects manipulated public procurement procedures, allowing Zobek Mining to unlawfully secure contracts for infrastructure projects. Despotovski denies any wrongdoing, while authorities continue to investigate.
The Basic Public Prosecutor's Office in Skopje has launched an investigation into Jovan Despotovski, former director of the Directorate for Technological Industrial Development Zones (TIDZ) in Skopje, and seven other high-ranking officials for alleged abuse of office. The case revolves around suspicions that they manipulated public procurement procedures to favour a specific company, Zobek Mining, in a €10 million tender. Despotovski has denied any wrongdoing, while authorities continue their investigation.
In November 2024, TV channel Telma reported that the Financial Police Directorate was investigating tenders for land development awarded by TIDZ to "Zobek Mining", amid suspicions of favouritism and manipulation of procurement criteria.
Between February 2022 and March 2024, the company signed five contracts with TIDZ, worth approximately €10.13 million for infrastructure projects in the economic zones of Štip and Strumica. There were suspicions that tender conditions were tailored to benefit Zobek Mining.
In December 2024, acting on a report from the Financial Police Directorate, the Basic Public Prosecutor's Office in Skopje initiated proceedings against eight individuals on reasonable suspicion that, as co-perpetrators, they had enabled unlawful financial gain for Zobek Mining amounting to 622,981,190 denars (approximately €10.13). The charges include abuse of official position and authority.
According to the prosecution, Despotovski issued a public procurement call for the infrastructure construction in TIDZ Štip and Strumica. TIDZs are designated areas established by the Government of North Macedonia to attract investment by offering various incentives to companies. Two companies submitted bids, with Zobek Mining offering a higher price but a significantly shorter execution period, leading to its selection as the contractor.
Investigators identified several key irregularities in the procurement process. Officials in the Public Procurement Bureau’s Committee for Administrative Control failed to verify whether the selected company met technical and professional requirements. The execution deadline was not properly assessed as a quality criterion. When the second bidder appealed the decision, members of the State Commission for Public Procurement Appeals dismissed expert evidence supporting the appeal, allowing the contract to proceed.
Two months after construction began, Despotovski signed a contract annex, increasing its value by 84,688,628 denars (€1.8 million, 19.77%) and extending the execution deadline. Three months later, he signed a second annex, increasing the contract value by an additional 34,921,240 denars (€567 thousand) and further extending the deadline. Despite Zobek Mining failing to meet the agreed 120-day deadline, authorities did not impose penalties, activate bank guarantees or terminate the contract.
By neglecting their duties, the suspects allowed the company to secure the public procurement contract based on an unrealistically short execution period, which it ultimately failed to meet, and a significantly higher price than its competitor. In doing so, they enabled the company to obtain unlawful financial gain.
Following the announcement of proceedings, the Basic Criminal Court in Skopje approved the prosecutor's request to seize assets owned by Zobek Mining to secure them for potential future confiscation. The court also seized Despotovski's passport to prevent a possible flight risk.
Despotovski, a former vice president of the SDSM party, resigned as TIDZ director in July 2024. He denied the accusations, asserting that the selection process was entirely transparent and conducted in full compliance with the law.
The scale of the alleged corruption in this case extends beyond financial damage, exposing weaknesses in public procurement processes. The involvement of public officials in manipulating tenders undermines institutional integrity and fairness, erodes public trust, and discourages qualified economic operators from competing. The estimated harm—622,981,190 denars (approximately €10 million)—represents a significant misuse of public resources. Citizens must remain vigilant and demand greater transparency in public tenders to prevent future abuses.
Further details
- JURISDICTION/COURT
Basic Criminal Court in Skopje
Basic Public Prosecutor's Office in Skopje
- LAWS (ALLEGEDLY) BREACHED
Criminal Code of the Republic of North Macedonia (Abuse of official position and authority, Article 353, paragraph 4 in connection with paragraph 1)
- FINAL SANCTION OR MEASURE
text here e.g.:
Following the request of the competent public prosecutor, the Basic Criminal Court in Skopje approved the temporary seizure of assets and items owned by the company to secure them for potential future confiscation. Additionally, at the public prosecutor's request, the court seized the passport of the first suspect, Jovan Despotovski
- UNCOVERING METHOD
Financial Police Directorate - the Basic Public Prosecutor's Office in Skopje, initiated proceedings, acting on a report submitted by the Financial Police Directorate
- PROSECUTOR
n/a
- JUDGE
n/a
- DEFENCE COUNSEL
n/a
SOCIAL HARM ON SDGs
9 Industry, innovation and infrastructure
16 Peace, justice and strong institutions
Quantified harm: The quantifiable financial harm in this corruption case amounts to an estimated 622,981,190 denars (approximately €10.13 million). This loss resulted from awarding a €10 million tender under irregular conditions to an economic operator because of its higher bid. The financial damage was further exacerbated by two contract annexes, which increased the project's cost by an additional 119,609,868 denars, while the company failed to meet its contractual obligations.
Social harm: The social harm caused by this corruption case includes the erosion of public trust in government institutions and the fairness and transparency of public procurement processes. The scale of the alleged corruption extends beyond financial damage, exposing systemic weaknesses that allow officials to manipulate tenders for personal gain. Such actions undermine institutional integrity, creating a perception that corruption is entrenched in state operations. This discourages qualified economic operators from participating in public tenders, ultimately reducing competition, innovation and the overall quality of public projects. Furthermore, when public resources are misallocated due to corruption, infrastructure and services may suffer, affecting citizens.
Disclaimer
Every effort has been made to verify the accuracy of the information contained in this database. All information is believed to be correct as of <CASE UPDATED>. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts.
Additional Material
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Press release Link jorm.gov.mk/osum-licza-osomnicheni-za-zloupotrebi-pri-javna-nabavka-vo-direkczijata-za-tirz/Court press release: Eight people suspected of public procurement abuses at the Directorate of TIDZ
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Press release Link a1on.mk/?s=ТИРЗ+Јован+Деспотовски+A1on articles about Despotovski
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Press release Link fokus.mk/?s=ТИРЗ+Јован+Деспотовски+Fokus articles about Despotovski
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Press release Link 360stepeni.mk/?s=ТИРЗ+Јован+Деспотовски+360 stepeni articles about Despotovski
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Press release Link www.slobodnaevropa.mk/s?k=ТИРЗ+Јован+Деспотовски+Slobodna Evropaarticles about Despotovski
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Press release Link sdk.mk/index.php/makedonija/odzemen-pasoshot-na-eksdirektorot-na-tirz-jovan-despotovski-osomnichen-e-za-zlopupotreba-na-sluzhbenata-polozhba/The passport of the former director of TIRZ Jovan Despotovski has been confiscated, he is suspected of abuse of official position
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Press release Link sdk.mk/index.php/makedonija/despotovski-i-7-chlenovi-na-biroto-za-javni-nabavki-i-na-komisijata-za-zhalbi-osomnicheni-deka-ozvozmozhile-na-firma-nezakonski-profit-od-nad-10-milioni-evra/Despotovski and 7 members of the public procurement bureau and the appeals commission, suspected of providing a company with illegal profits of over 10 million euros
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Press release Link telma.com.mk/2024/12/30/tenderi-za-tirz-vo-shtip-i-strumicza-so-kratok-rok-za-izgradba-im-dodelile-tender-od-12-milioni-evra-krivichna-za-8-mina-megu-koi-i-despotovski/Tenders for TIDZ in Shtip and Strumica - with a short construction deadline, they were awarded a tender worth 12 million euros, criminal charges for 8 people, including Despotovski
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