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Government proposes that three HFP vice-presidents be relieved of duty

ZAGREB, June 20 (Hina) - The Croatian government on Wednesday proposed that the Management Board of the Croatian Privatisation Fund (HFP) relieve of duties three HFP vice-presidents - Ivan Gotovac, Josip Matanovic and Robert Pesa, who were arrested on suspicion of corruption.
ZAGREB, June 20 (Hina) - The Croatian government on Wednesday proposed that the Management Board of the Croatian Privatisation Fund (HFP) relieve of duties three HFP vice-presidents - Ivan Gotovac, Josip Matanovic and Robert Pesa, who were arrested on suspicion of corruption.

"Those HFP vice-presidents were involved in incriminating activities and are under investigation, and we propose that the Management Board relieve them of duties," Sanader said at a session of the government. The government today also decided to set up a task force to decide on a new type of institution to take over the process of privatisation.

After the HFP corruption scandal broke out, Sanader announced the abolishment of the HFP and the establishment of a new institution to continue the privatisation process.

Under the government's decision, the task force is to consist of representatives of the Office of the President, the Government, the Ministry of the Interior, the State Prosecutor's Office, the Office for the Suppression of Corruption and Organised Crime (USKOK), the Office for the Prevention of Money Laundering, the State Auditor's Office, the Financial Services Supervisory Agency, the Institute of Economics and the Zagreb Law School.

The decision shall take effect immediately and the deadline for proposals on a new institution to head the privatisation process is July 15.

PM Sanader told government members that the formation of the task force had been agreed earlier in the day, at a session of the National Security Council, at which the state leadership agreed to continue the anti-corruption campaign.

The government will help the campaign both by amending legislation and by providing logistic support, Sanader said.

"After this operation, nothing will be the same (in the HFP)," he added.

In an effort to step up the campaign against corruption and organised crime, the government sent to parliament for adoption the final bill on changes to the Law on USKOK, which specifies criminal acts from within USKOK's jurisdiction.

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