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LINIC BLAMES OIL COMPANY MANAGERS FOR FINANCIAL LOSSES

ZAGREB, March 11 (Hina) - Croatia's INA oil company has lost between US3.5 million and 4 million as a result of irregularities and omissions in the purchase of oil, and the blame chiefly lies with the company management led by Tomislav Dragicevic, who have not done enough to rectify the irregularities, a former chairman of the INA Supervisory Board said on Thursday.
ZAGREB, March 11 (Hina) - Croatia's INA oil company has lost between US3.5 million and 4 million as a result of irregularities and omissions in the purchase of oil, and the blame chiefly lies with the company management led by Tomislav Dragicevic, who have not done enough to rectify the irregularities, a former chairman of the INA Supervisory Board said on Thursday.#L# "The managers are responsible, because they did not deal with the problem of oil purchase. They did not even want to discuss the matter, and the person most responsible for this is Tomislav Dragicevic," Slavko Linic, a member of the Social Democratic Party (SDP) presidency who was relieved of his duties as chairman of the INA Supervisory Board on Wednesday, told a news conference at SDP headquarters in Zagreb. Linic welcomed Wednesday's decision by the INA General Assembly to appoint a new Supervisory Board, adding that the Board would present a report at a regular session of the Assembly. "The government must assume responsibility for the oil company and its strategic partner, the Hungarian MOL. That way new members of the Supervisory Board can get acquainted with details and run INA responsibly. I wish them a lot of success," Linic said. SDP president Ivica Racan condemned a decision by the government to postpone investment in the modernisation of the railway network, saying that abandoning development projects could not be justified by the lack of money or a deficit. "The decision to abandon the modernisation of railways raises the question of whether the government has a development plan at all, because this will cause great damage to the Croatian industry and bring into question everything the previous government achieved. Hundreds of jobs are at stake, as well as a negative effect on the overall development and economic growth," Racan said. The leader of the strongest opposition party criticised the government's policy towards the International Monetary Fund, saying that it had failed to convince the international financial institution that the modernisation of the Croatian railway system was necessary both for Croatia and entire Europe. "It's not true that there is no money," Linic said, adding that the previous government had managed to convince the IMF of the need to invest in development projects, including the railways. "It will be very hard for the government of Ivo Sanader because of the announced reduction of Value Added Tax and continued investment in spending. That's why it will be even harder for it to convince the IMF that the State will be able to spend and develop at the same time," he added. Racan also criticised the government, primarily Deputy Prime Minister and Health Minister Andrija Hebrang, for "coming down on" the directors of medical institutions, who he said were the chief promoters of important development projects in the health sector. (Hina) vm sb

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