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RACAN SAYS GOVT. LIED ABOUT ITS DECISION TO AWARD CONTRACT TO BECHTEL

ZAGREB, Aug 4 (Hina) - The leader of the Social Democratic Party (SDP),Ivica Racan, said on Wednesday the government "deceived and lied tothe Croatian public" by concealing that in mid-July it had made aharmful decision to grant the US company Bechtel a contract to build asection of a Split-Dubrovnik highway without inviting bids.
ZAGREB, Aug 4 (Hina) - The leader of the Social Democratic Party (SDP), Ivica Racan, said on Wednesday the government "deceived and lied to the Croatian public" by concealing that in mid-July it had made a harmful decision to grant the US company Bechtel a contract to build a section of a Split-Dubrovnik highway without inviting bids.

"The Croatian Democratic Union-led government conducted secret negotiations with Bechtel on awarding the contract directly, and on July 15 it decided to grant the contract without inviting bids, only to state later that it had not made such a decision and that awarding the contract directly was possible because of the former government's decisions," Racan said at a news conference.

He welcomed the government's decision of today to invite bids for the construction of the Dugopolje-Sestanovac highway section.

The SDP leader said he was confident that the decision was prompted by strong pressure from the opposition, media and expert community, which he said had reason to become increasingly suspicious of corruption.

Commenting on Prime Minister Ivo Sanader's claim that his government, unlike the former one, wants to be transparent, Racan said "it is high time that the HDZ's government become transparent, because so far it has not been transparent".

He dismissed the PM's criticism that the problem with the contract was caused by decisions of the Racan cabinet, which he said changed the contract with Bechtel after last year's elections.

"We changed a contract that was detrimental to Croatia, and these criticisms leave an impression as if somebody was sorry a harmful contract is no longer in force," Racan said.

He also commented on Transport Minister Bozidar Kalmeta's claim that those who raised hue and cry over the Bechtel case did so only to avert public attention from the State Audit's report, which he said would reveal wrongdoings of the former government.

"This reminds one of allegations levelled against those with a different opinion that we came to know so well during Tudjman's time and proves that those using such rhetoric belong to the old HDZ. However, it is no longer possible to dismiss substantiated criticisms of bad government decisions the way the old HDZ did, it is a futile effort by those who want to pull Croatia back where it used to be."

The SDP leader said he believed that despite the growing foreign debt and state deficit, one should continue with the construction of the Zagreb-Dubrovnik highway because it was crucial for the country's development.

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