The only official billionaire holding a Montenegrin passport, the former Thai Prime Minister Thaksin Shinawatra, is facing challenges with his business activities in Montenegro. The acquisition of a prime three-hectare parcel on Sveti Nikola Island, near Budva—which is affectionately referred to as Hawaii—has turned out to be more of a liability than a profitable venture, as his company continues to incur heavy losses annually.

According to financial statements accessed by “Vijesti”, Shinawatra’s company, “Global TS Montenegro,” reported a loss of 36,447 euros for the previous year, having also recorded a deficit of 97,631 euros the year before. This brings the company’s cumulative losses to an alarming total of 1,191,823 euros.

One positive aspect is that Shinawatra’s firm consistently meets its tax responsibilities to both the state and the Municipality of Budva, paying real estate taxes punctually. However, the company lacks any revenue, having been unable to execute plans for constructing tourist facilities on the island for several years, resulting in accumulating deficits.

The company’s operations are undeniably hindered by government indecision, an issue persisting for four consecutive years, despite “Global TS Montenegro” requesting a comprehensive study of Sveti Nikola Island. This area also includes land owned by other parties that are waiting for development, with Shinawatra owning only a quarter of the island. The spatial plan for the coastal area proposes urban development, including hotel facilities totaling 500 beds and a marina with 50 berths, yet a detailed study is essential to clarify the scope and limits of construction.

Without this study, Shinawatra’s company can expect to continue experiencing financial losses.

The financial statement for 2024 indicates that the company’s fixed assets have remained steady at 24,720,000 euros, while long-term liabilities stand at 16 million euros.

In April 2017, “Global TS Montenegro” entered into a purchase agreement with the Podgorica-based company “San Investments,” associated with Serbian businessman Stanko Subotic Cane, acquiring 37 square meters of land on Sveti Nikola Island for 24 million euros.

Shinawatra was granted parole on February 18 of last year, marking his first day of freedom in Thailand after 15 years in exile.

The prominent billionaire, whose daughter became Thailand’s Prime Minister in August last year, was released from a Bangkok prison hospital where he had spent the previous six months. His sentence for power abuse was commuted from eight years to one by the Thai king.

Due to his age, health status, and duration of imprisonment, Shinawatra became eligible for parole. He served as Thailand’s Prime Minister from 2001 until his ousting in a military coup in 2006, after which he was banned from politics and faced allegations of tax evasion and abuse of power.

Following a 15-year period in self-imposed exile, during which he claimed the charges were politically motivated, he returned to Thailand last year to serve a reduced sentence. Although convicted of corruption in Thailand, he was awarded a Montenegrin passport as an honorary citizen in 2009.

The Issue of a Legacy Structure in Need of Demolition

“Global TS Montenegro” is likely faced with the requirement to demolish a three-story concrete structure on Sveti Nikola Island after the Directorate for Inspection Supervision rejected the company’s appeal. The Ministry of Spatial Planning, Urbanism, and State Property confirmed this decision, which had been made by the urban planning and construction inspector two and a half years ago, as reported by “Vijesti”.

The structure in question was built by a previous owner of part of the island, the Belgrade businessman Nenad Djordjevic.

The Ministry’s explanation states that, in late June 2022, Shinawatra’s company’s appeal against the May 27 decision of the urban planning and construction inspector—ordering the demolition of “illegally constructed building number 2,” measuring 18 x 6 meters, with an additional 6 x 1.9 meters—was denied. The inspector determined that the building did not qualify as primary housing.

“Global TS Montenegro” has initiated a legal dispute before the Administrative Court, which overturned the inspector’s decision in late October 2023, instructing the relevant ministry to reassess Shinawatra’s company’s appeal.

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