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HSP urges probe into Pliva CEO over sale of optional company shares

ZAGREB, Oct 19 (Hina) - Party of Rights (HSP) parliamentary deputy Pero Kovacevic on Thursday urged an investigation to establish if Pliva CEO Zeljko Covic, by selling optional company shares, had committed a criminal act rather than only an offence as alleged in a report by the Croatian Financial Services Supervisory Agency (HANFA).
ZAGREB, Oct 19 (Hina) - Party of Rights (HSP) parliamentary deputy Pero Kovacevic on Thursday urged an investigation to establish if Pliva CEO Zeljko Covic, by selling optional company shares, had committed a criminal act rather than only an offence as alleged in a report by the Croatian Financial Services Supervisory Agency (HANFA).

HANFA filed a report against Covic because he was not allowed to trade in his shares by using optional agreements before a decision by Pliva's shareholders' assembly.

Kovacevic made the request during a parliamentary debate on HANFA's report on last year's work of the Commission for Securities, the Agency for the Supervision of Pension and Insurance Funds, and the Directorate for the Supervision of Insurance Companies.

Kovacevic said that if HANFA's report was accepted, Covic would be punished with a fine of up to 200,000 kuna for selling Pliva's optional shares, to which he said Covic had not been entitled.

The HSP deputy went on to say that trading in privileged information was considered a serious criminal act entailing the confiscation of unlawfully acquired property.

The Social Democrats (SDP) and the Istrian Democratic Party (IDS) too believe that the controversial sale of Pliva's optional shares should be investigated.

The HANFA report was endorsed by clubs of deputies, although they had some objections to the agency's work.

Luka Roic of the Peasant Party (HSS) objected that HANFA had supported the project of privatisation of the Suncani Hvar hotel company in line with the public-private partnership model, which he said had resulted only in huge increases in the prices of tourist services.

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