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Investigation into allegations of financial wrongdoing in Split shipyard under way

SPLIT, Sept 12 (Hina) - The investigation into the management and the supervisory board of the Brodosplit shipyard, launched on orders from the Split County Prosecutor's Office after an anonymous report accused the company management and supervisory board of causing damage to the company amounting to at least USD16 million, is under way, local police officials said on Tuesday.
SPLIT, Sept 12 (Hina) - The investigation into the management and the supervisory board of the Brodosplit shipyard, launched on orders from the Split County Prosecutor's Office after an anonymous report accused the company management and supervisory board of causing damage to the company amounting to at least USD16 million, is under way, local police officials said on Tuesday.

Three months ago, the police submitted a report to the Split County Prosecutor's Office stating that no evidence of financial wrongdoing had been discovered in the Split-based company, after which the investigation continued at the request of the County Prosecutor's Office due to mysterious money flows from Brodosplit to Austria. Interpol joined in the investigation.

In the meantime the case has taken on a political dimension when officials from the Social Democratic Party (SDP) started levelling accusations against PM Ivo Sanader, particularly after the replacement of the chairman of Brodosplit's Supervisory Board, whom the media described as the main culprit in the case.

Asked about the allegations in an interview with Croatian Radio on Monday, PM Sanader said that he had requested a prompt investigation as soon as the case was discovered.

He added that possible criminal activity in Brodosplit should be investigated and the perpetrators punished.

He repeated this statement in an interview with Slobodna Dalmacija daily of Tuesday.

Brodosplit CEO Goran Vukasovic, Economy Minister and Supervisory Board chairman Branko Vukelic, former Supervisory Board deputy chairman Sinisa Poljak and five other members of the Supervisory Board, as well as two company managers are suspected of signing harmful contracts with the German shipping company Wessels and of taking commission amounting to some six million dollars, thus causing damage to Brodosplit amounting to at least USD 16 million.

The Brodosplit management has dismissed all allegations of financial wrongdoing.

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