In response to a question by an HSP parliamentary deputy about this matter, Sanader said during Question Time in parliament that the Sisak company's director, Damir Begovic, had signed the contract without the government's knowledge.
Pejo Trgovcevic of the Croatian Party of Rights (HSP) asked whether anyone would assume liability for the conclusion of the contract.
Sanader responded that the government ordered the cancellation of the agreement.
Concerning plans for the privatisation of the ironworks and the tube rolling mill in the town 50 kilometres southeast of Zagreb, the premier said that the government was on the alert so as to avoid negative experiences with previous attempts to privatise the two companies.