Montenegro Airlines (MGX, Podgorica) financial reports and records under the management of former CEO, Zoran Djurišić, were falsified to show an improving outlook a forensic audit of the airline's finances has shown.

EX-YU Aviation News says the MV Konsalt consulting firm uncovered the irregularities having pored over the airline's accounts for the last several financial years. Instead of the EUR20million (USD26.61million) loss as announced by Djurišić last year, the audit showed the airline had in fact produced a net loss of over EUR70million (93.78million).

The report went on to add that the carrier had falsified its financial reports for "several years" by showing conflicting and inaccurate figures aimed at embellishing its financial performance. As a result, the airline's future prospects now remain in doubt.

“The airline cannot cover its losses from its existing revenue. The company’s ability to continue operating depends on its efforts to restructure its liabilities and establish a satisfactory level of liquidity. The possibility of improving its financial performance is limited and almost entirely dependent on government support and restructuring,” MV Konsult's audit report stated.

The incoming management team of Daliborka Pejović alerted authorities to Djurišić's "creative accounting" procedures following his departure late last year.

Djurišić, who was at the helm of the company for nineteen years, resigned on November 28 of last year after his dismissal from the post of CEO in July.