"The President has no need to comment as he has already stated that the Government should withdraw its decision on the deal. It is now on the Office of the Chief State Prosecutor to make the next move, and the Office of the State Auditor has done all it should," Mesic said in a written statement issued by his office.
A report which the Office of the State Auditor compiled in 2002 highlighted many irregularities in voucher privatisation.
The mayor of the northern Adriatic resort town of Opatija, Amir Muzur, said on Wednesday he was glad to hear today's decision by the government to rescind its approval, adding that all of this showed that "in democracies, a government can make a mistake but it can also correct it".
Muzur said that arguments which the local authorities presented against the deal between the Croatian Privatisation Fund and the two holding companies - SN Holding and DOM Holding - were firm and the local government said that it wanted to see employees and local entrepreneurs taking part in the privatisation of the hotel chain.
"The city of Opatija would like to achieve, in cooperation with the government as Liburnia's owner, the best solution and privatise the company in such a way as will ensure its development," Muzur told Hina.
Ivica Racan, the leader of the strongest opposition party, the Social Democratic Party, today said that he had expected the government to rescind its decision of 4 August.
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 President Mesic.