On Wednesday the Ivo Sanader cabinet withdrew its approval for a majority of the shares of the Liburnia Riviera hotel chain to be awarded to the 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 the president of the Privatisation Fund.
According to Macek, the government made such a decision given that local authorities in coastal towns of Opatija, Lovran, Matulji and Moscenicka Draga had not been consulted although they were registered as owners of a part of the company's real estate. Fifty seven (57) lawsuits are already under way due to this issue, and 30 percent of shares of Liburnia Riviera hotels are reserved for this purpose, Macek said.
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.
The Sanader cabinet appointed Grgo Ivezic as the acting president of the Croatian Privatisation Fund (HFP). Ivezic has so far been the state secretary of the central Croatian office for state-owned property management.