The recent developments in the fight against corruption in Serbia, particularly the arrest of former acting director Milorad Grčić of the Electric Power Industry of Serbia (EPS), have been attributed to student protests. Economist Saša Đogović remarked that such actions would not have occurred if not for the student movements, emphasizing that institutions often act at the behest of the authorities.

He further stated that this validates the students’ assertion that institutions function based on “television control” rather than in an independent manner.

Grčić, who serves as the mayor of Obrenovac, was apprehended during an anti-corruption operation yesterday morning, following orders from the Higher Public Prosecutor in Belgrade. He is under suspicion of causing damage to EPS during his tenure.

Grčić was appointed as the acting director of EPS on March 15, 2016, initially meant to serve until the completion of a director selection process, but he remained in position until January 2022.

His resignation came after a series of significant accidents at EPS, resulting from poor-quality coal that led to widespread blackouts affecting 130,000 households.

Shortly after leaving EPS, he was appointed assistant to the mayor of Obrenovac and went on to become the mayor in July 2024.

In late 2020, after the formation of the Serbian Government, the Minister of Mining and Energy, Zorana Mihajlović, filed two criminal charges against Grčić, yet there was no subsequent action from the Government or the Prosecutor’s Office.

The police operation also resulted in the arrest of controversial businessman Aleksandar Papić, known as a former associate of ex-Police Minister Nebojša Stefanović. Papić was reportedly questioned concerning a financial investigation linked to the Veljko Belivuk clan.

Media reports suggest Papić is the de facto owner of a company suspected of colluding with Grčić to win rigged tenders for EPS.

Saša Đogović conveyed to Beta news agency that Serbian President Aleksandar Vučić had previously announced a crackdown on corruption, promising to unveil more arrests. He noted that such actions should be the prerogative of prosecutors and courts, independent of presidential intervention, thereby reinforcing the students’ assertion of institutional “capture.”

He cautioned that this approach to combating corruption could lead to intensified protests, affirming the belief that institutions operate under external control.

“The anti-corruption initiative will not diminish students’ dissatisfaction, which is the real intention behind these arrests, aiming to project an image that institutions are functioning and protests are unnecessary,” argued Đogović.

He pointed out that the timing of these arrests raises questions regarding their legitimacy, suggesting if the institutions were truly effective, such actions would have been initiated sooner, not five years post-incident at the Nikola Tesla thermal power plant.

“Ultimately, we must observe how the judicial proceedings unfold, as they may well be diluted. Citizens recall the arrest of businessman Miroslav Mišković when the Serbian Progressive Party (SPS) came into power, which proved to be more marketing than substance. While I can’t predict a similar outcome now, the prevailing distrust in institutions makes it unlikely that this will quell protests,” said Đogović.

He asserted that this wave of arrests reveals the inner workings of the current SNS-SPS coalition, although it was purportedly intended to demonstrate a systemic fight against corruption.

The anti-corruption campaign will not suppress, atomize, or dampen student dissatisfaction, which is the goal of the arrests to show that the institutions in the state are working and that there is no need to continue the protests.

Referring to the latest Corruption Perception Index results for 2024, he emphasized that they reflect a deterioration in Serbia’s standing compared to the previous year, marking its worst performance since 2012.

“The crisis of authority within the government will persist, along with the erosion of trust in institutions and declining approval ratings for the dominant party, and any results from these arrests will likely be fleeting,” he stated.

He noted that courts, as independent branches of government, should actively investigate corruption, particularly concerning the unexplained five-fold increase in the cost of reconstructing the canopy at the Novi Sad Railway Station, for which no answers have been provided.

Democratic Party (DS) President Srđan Milivojević remarked that the arrest of Grčić and 14 others connected to EPS fraud exemplifies a mere facade in the fight against crime and corruption.

Milivojević indicated that true efforts to combat corruption should target those at the top of the state’s criminal hierarchy, stating that globally, such initiatives begin at the highest levels of government.

“A decade ago, Aleksandar Vučić described Grčić as his choice, leading me to question why law enforcement is arresting him instead of the heads of organized crime responsible for the widespread corruption in this country,” he noted, adding that law enforcement is targeting individuals for minor infractions instead of addressing the root causes of significant tragedies.

Milivojević mentioned that Papić had confessed to involvement in a major corruption scandal linked to the construction of the Ruma-Šabac road.

“We released Papić’s correspondence to Vučić detailing how, with Siniša Mali’s consent, the construction costs escalated from 50 million to 75 million euros, with a 10 million euro kickback to the ruling party (SNS) and 15 million euros shared among contractors. Papić complained about not receiving 6 million euros he was promised. The prosecution’s failure to investigate this affair highlights why Serbia ranks among the most corrupt nations in Europe,” Milivojević asserted.

“A transparent play for the people”

Transparency Serbia Program Director Nemanja Nenadić commented on Grčić and Papić’s arrests, suggesting that these cases had previously been ignored by the prosecution, which now seems to act for undisclosed reasons.

He mentioned that certain officials are assigned to investigate corruption cases regularly. “Such actions, particularly in light of declarations by political leaders, undermine the perceived integrity of these state entities,” Nenadić remarked.

He added that “the manner in which this has been managed raises serious concerns about potential political maneuvering against the defendants, which could mirror the Mišković case.”

Lawyer Rodoljub Šabić described the arrests of Grčić and Papić as “a fairly transparent play for the public.”

“There’s a sense that dramatic arrests are being made of individuals known to have faced previous criminal charges. It feels like an attempt to validate the president’s announcements,” he stated, underscoring his skepticism about such measures.

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