Aleksandar Mijajlović, a prominent Montenegrin business man, has come under public scrutiny due to his arrest on suspicion of leading a cigarette smuggling ring and subsequent financial transfers involving his car rental agency. These financial transfers, totalling €10.1 million, are alleged to be an attempt to conceal assets in the wake of his arrest. Mijajlović has since been released on bail, and further financial investigations are expected.

Mijajlović is considered a prominent business man closely associated with Bemax, one of the largest construction companies in Montenegro. Although the media often refer to Mijajlović as an informal co-owner of Bemax, his name does not appear in the company’s official records. Instead, he holds positions in companies that were founded by Bemax. Both Bemax and its leadership are also considered to have ties to the Democratic Party of Socialists and the former ruling structure (see here).

Mijajlović is also publicly known for owning Easy Drive, a luxury car rental agency famous for its collection of high-end vehicles and personalised car plates and a staple among the country’s elite. Despite the company's high profile and repeated calls from the media and civil society to investigate the origin of funds used to acquire its luxury cars, no formal investigations by the relevant authorities were initiated, until recently.

On 19 February 2024, Mijajlović was arrested on suspicion of leading a criminal organisation involved in cigarette smuggling. Alleged members of the smuggling ring, some of whom were active police officers, were also arrested, including Dejan Jokić, Zoran Đukanović, Golub Vojinović, Dragan Backović, Milenko Rabrenović, Radoje Rabrenović and Mirko Mijušković.

The arrests followed months of coordinated efforts by the Special State Prosecutor's Office, the Special Police Department and the European Union Agency for Law Enforcement Cooperation (EUROPOL). Montenegrin investigators initiated the investigation based on encrypted "Sky ECC" correspondence obtained through EUROPOL. Prior to the arrests, authorities had been investigating the criminal offenses committed by a cigarette smuggling ring referred to as the Grand clan.

On 22 February 2024, the High Court in Podgorica, acting on the recommendation of the special state prosecutor, ordered the detention of Mijajlović and the other seven suspects for up to 30 days.

In the court order, which included the investigative files from the Special State Prosecutor's Office, it was stated that there was reasonable suspicion that between 2019 and 2021 Mijajlović, along with the seven detained suspects and other unidentified persons, committed the criminal offense of creating a criminal organisation. The organisation was alleged to have engaged in cigarette smuggling, money laundering and abuse of official position, operating across Montenegro, Bosnia and Herzegovina, and other countries.

The investigative files further explained that, under the leadership of Mijajlović and another unidentified individual, the criminal organisation was well structured, with distinct roles assigned to each member. According to the files, over the course of about a year, Mijajlović ordered, purchased and coordinated the transport of at least 60,000 packs of cigarettes from the United Arab Emirates. These cigarettes were then smuggled onto the illegal market in Montenegro and other countries. Overall, the files provided a comprehensive account of the alleged criminal activities associated with the cigarette smuggling operations.

During a hearing at the Special State Prosecutor's Office, Mijajlović denied the allegations. He also noted that in the 1990s he was employed by a state-owned company involved in the transit of cigarettes, and that since then he had been the subject of rumours regarding his alleged involvement in cigarettes smuggling.

On 22 January 2024, less than a month before his arrest, Mijajlović established a new company called Easy T, registered as a construction business and owned by his high-end car rental agency, Easy Drive. The investigative centre MANS discovered, examining data from the Central Register of Business Entities, that four days after Mijajlović's arrest Easy Drive transferred ownership of 28,000 square metres of land and approximately 15,000 square metres of business premises to Easy T, amounting to a total value of €10.1 million.

This transaction fostered the perception that Mijajlović was still pulling strings from behind bars. The Executive Director of MANS Vanja Calovic Markovic characterised the ownership transfer between the two companies as an obvious attempt to conceal assets and urged the Special State Prosecutor's Office to initiate a financial investigation against Mijajlović.

After a bond of €1.1 million was posted, Mijajlović was released from custody in April 2024, despite the objections of the Special State Prosecutor's Office. Upon his release on bail, the court imposed surveillance measures, requiring Mijajlović to report regularly to the authorities and prohibiting him from leaving the territory of Podgorica. This substantial bond is not an isolated case for Montenegro, as significant sums have been offered as bail in several high-profile cases in recent years.

In July 2024, the Special State Prosecutor's Office issued a temporary measure prohibiting the disposal and use of a 170 square metre apartment. Although the property is registered to the company Bemax, the special state prosecutor has identified Mijajlović as the off-the-books owner.

By the end of August 2024, all the arrested suspects had been released from prison, either by posting bail or because the legal six-month period for filing an indictment following their arrest had expired.

Despite extensive media coverage, there have been no recent updates on the ongoing financial investigation into Mijajlović. However, the reporting of financial transactions following his arrest has raised awareness of potential misconduct and underscored the need for a thorough financial investigation.

In response to the case, there have been calls for further investigations as well as reforms, including legislation to better investigate property origins and confiscate assets acquired through crime (see here and here) .

The media attention and civil society scrutiny in this case show a commitment to address questionable dealings. Now, it is crucial for law enforcement and the prosecution to act decisively and fully investigate these illicit activities.