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Government withdraws its decision in Liburnia Riviera case

ZAGREB, Aug 17 (Hina) - The Croatian Government on Wednesday withdrewits approval for a majority of the shares of the Opatija-basedLiburnia Riviera hotel chain to be awarded to two holding companies aspart of a deal to settle the government debt resulting from thevoucher privatisation process, and relieved Damir Ostovic of hisduties as president of the Croatian Privatisation Fund (HFP).
ZAGREB, Aug 17 (Hina) - The Croatian Government on Wednesday withdrew its approval for a majority of the shares of the Opatija-based Liburnia Riviera hotel chain to be awarded to two holding companies as part of a deal to settle the government debt resulting from the voucher privatisation process, and relieved Damir Ostovic of his duties as president of the Croatian Privatisation Fund (HFP).

The Government revoked its decision of 4 August approving the deal between the HFP and SN Holding and DOM Holding, the Government's Public Relations Office said in a statement.

The Government relieved HFP President Damir Ostovic of his duties, citing omissions in the process of preparation of the proposal for the transfer of shares of Liburnia Riviera Hoteli d.d. to the two holding companies. It also submitted a proposal to the HFP Managing Board to dismiss HFP Vice-President Ivan Gotovac.

The statement said that the Government expected the Chief Public Prosecutor's Office to continue its activities to protect the legal interests of Croatia in the dispute with the plaintiffs, SN Holding and DOM Holding.

The Government's decision to award the majority of shares to DOM Holding and SN Holding has encountered severe criticism from local authorities and residents of Opatija as well as from many political parties and the President of the Republic, Stjepan Mesic.

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