The Privatization Agency acted legally in the privatization of Azotara and during the control of contractual obligations, the body announced late Monday after the arrest of Julijana Vuckovic, a member of the Agency Collegium.

The Agency regularly informs all bodies which supervise and monitor its activities - the ministry in charge of privatization, the Serbian government and the parliamentary Privatization Committee, says the statement.

"In spite of this, the accountability of Agency employees is being highlighted in connection with the arrest, even before judicial bodies have had their say," notes the Agency.

The statement goes on to note this is not the first time the Agency and its employees have been publicly exploited and marked as a part of organized crime and corruption, despite their political neutrality.

"It is impermissible to use Agency employees as media bait in the election campaign in an effort to paint the privatization process in a negative light," adds the statement.

Seven people, including former director of the Center for control of privatization Juliana Vuckovic, who were arrested Monday are suspicted of abuse of office which cost Azotara, a Pancevo-based synthetic fertilizer manufacturer, close to RSD 1 billion. Arrest warrants are out on another two suspects.