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USKOK suspects Sanader and Jezic of trying to defraud state-run JANAF

ZAGREB, March 8 (Hina) - The USKOK anti-corruption investigating agency has extended a probe into former Croatian Prime Minister Ivo Sanader and into Robert Jezic, the owner of the Dioki Group, over suspicions that they tried to ensure an unlawful gain of EUR 10 million for Jezic's company, specialised in petrochemicals and plastics production, at the expense of the state-run JANAF oil pipeline operator.

According to a press release issued on USKOK's web site on Tuesday, using his position of premier from November 2008 to June 2009, Sanader tried to ensure that the construction site with a terminal for crude oil and petroleum products storage in Zagreb's eastern suburb of Zitnjak was sold at EUR 28 million and under the conditions and terms set by Jezic.

However, the price demanded by Jezic was EUR 10 million higher than that at which the plot and the terminal were eventually sold.

At Sanader's urging, the then Economy Minister Damir Polancec organised several meetings between Jezic and JANAF executives on the issue, but they failed to reach agreement on the sale because the asking price was higher than the market price, as appraised by experts at JANAF's request. Therefore PM Sanader himself organised a meeting in his office in May 2009 insisting that JANAF should conclude a purchase contract under the terms and conditions proposed by Jezic, although he was aware that this would damage the state-run company, according to USKOK.

Such contract was not concluded because JANAF's executives rejected Sanader's request, aware of potential damage to the state company.

USKOK suspects Sanader of trying to abuse his powers and Jezic of inciting Sanader to perpetrate the alleged crime.

Jezic has been in investigative custody since last December.

Jezic and Sanader, who is held in extradition custody in Salzburg, are already suspected of involvement in HEP's selling electricity to Dioki far below market prices, together with the former CEO of the HEP power company, Ivan Mravak and HEP executive Ivan Mrljak. Former HEP CEO Mravak is also suspected of giving companies that are part of the Dioki group, without the approval of the HEP management, a loan in the amount of 15 million kuna (approx. EUR 2 million).

The former Croatian premier is charged with having syphoned some 80 million kuna from public companies and ministries via the private Fimi Media company. He is charged with receiving kickbacks for the approval of a loan which Hypo bank gave to the Croatian government while he was Deputy Foreign Minister.

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