"The Karin Universal company has not paid any sum of money into the my wife's, her firm's or my account, and there was no transaction. Bribery is out of the question," Zuzul said at a news conference, which he held in the government's offices in Zagreb on Tuesday.
He announced that he was going to sue the independent web site over the article headlined " Zuzul Takes 500,000 Kuna in Bribes With Wife's Help".
According to the article, Mrs Zuzul sold 50 percent of shares in her company MTS to the company owned by Ivan Karin at the price of 500,000 kuna (some 66,700 euros). That company, Karin Universal, bought, at the seventh invitation of bids, the Imotstroj company, which previously went into receivership, at the price of 6.5 million kuna. On 2 September, the government wrote off the debt, worth 6.2 million kuna, of the company based in the southern town of Imotski in order to settle workers' claims.
Zuzul told the news conference that these were two separate stories which were being connected only because of some politically-motivated intentions and a wish to create a scandal where there was none.
Zuzul said he was going to consult his lawyers on the amount of compensation he was going to seek, and added that any damages which he might receive would go to charity.
The minister said that his wife, who was the only owner of the MTS company, had decided at the beginning of this year to discontinue the company's business activity and sell a part of the shares so as to be able to service credits and other financial obligations. The stock capital (equity) of her firm is 20,000 kuna. Apart from this, the company includes two business premises, each on 140 square metres, a garage and a car, all of which was on sale.
The sales agreement between Mrs. Zuzul and the Karin Unversal company was signed on 1 February and should have been carried out over the coming six months, i.e. until 1 August, but the deal was not implemented.
According to the minister, Mr. Karin informed the Zuzuls that he was giving up the agreement and that it became null and void. Nothing was paid, Zuzul energetically asserted at the news conference, adding that proceedings were initiated so as to annul the agreement, which is being carried out by the Cirkveni law firm.
Commenting on the government's decision to write off a part of Imostroj's debt, Zuzul said the decision was made in the interest of 168 workers who would thus be able to receive their salaries in arrears.
At the Zagreb news conference, copies of the workers' letter of thanks were distributed to reporters.
"The government did nothing to help Karin Universal but the intention was to help workers," the minister added.
He recalled that Imostroj's entire debt to the government was about 9.5 million kuna, and the Ivo Sanader cabinet wrote off 6.2 million kuna.
Zuzul went on to say that this was no precedent, as not only the current government but also former ones used to make similar decisions on writing off ailing companies' debts.
The government's spokesman, Ratko Macek, who was also present at the news conference, said that this year, the government either wrote off debts or exchanged its claims by holding a part of shares in a number of ailing companies. According to rough estimates, the amount is over 100 million kuna this year, Macek said in order to corroborate Zuzul's previous statement.
Later on Tuesday, Prime Minister Ivo Sanader said he fully supported his Foreign Minister, Miomir Zuzul, as well as all other ministers in his cabinet.
"I have nothing to add to what Minister Zuzul said at today's news conference," Sanader told reporters before the start of the session of the HDZ members of parliament.