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PARLIAMENTARY COMMISSION FOR RIJEKA SHIPYARD TO CONTINUE WITH WORK

ZAGREB, Nov 5 (Hina) - A parliamentary commission set up to establishfacts about state guarantees granted to the ailing Viktor Lenacshipyard on Friday decided to continue with its work despite somedoubts as to whether the commission should continue existing after thepolice pressed charges against the shipyard's former CEO, DamirVrhovnik.
ZAGREB, Nov 5 (Hina) - A parliamentary commission set up to establish facts about state guarantees granted to the ailing Viktor Lenac shipyard on Friday decided to continue with its work despite some doubts as to whether the commission should continue existing after the police pressed charges against the shipyard's former CEO, Damir Vrhovnik.

Members of the commission, who convened on Friday, said the act of pressing charges did not mean the launching of court proceedings, and agreed that the commission would continue with its activities until the start of a possible trial.

Members of the ruling Croatian Democratic Union (HDZ) insisted on the continuation of the commission's work.

Branimir Glavas of the HDZ voiced suspicion that by pressing charges against Vrhovnik for what he called "less important things", the police were trying to block the commission's work in view of well-grounded suspicions about hundreds of million dollars of budgetary funds having been embezzled in the shipyard. He went on to say that the background of the entire scandal was graver than it was described in the charges, and his party colleague Florijan Boras agreed with him.

Dragica Zgrebec of the Social Democratic Party (SDP), who is also a member of the commission, advised the HDZ deputies either to refrain from such comments during the course of the enquiry or to submit evidence, if they had it, to the police and prosecutors.

Boras then accused the former coalition government led by Ivica Racan of ordering the obtaining of mortgage on the maritime demesne in the shipyard in order to take a loan for the shipyard.

This prompted Zgrebec to present to the commission documents showing that the mortgage had been obtained and entered in land books in 1995 (during the rule of the HDZ government).

Anto Djapic of the opposition Croatian Party of Rights (HSP), who chairs the commission, said that over the next ten days the commission should get all requested documents it required on the shipyard which went into receivership, and that all witnesses would be questioned until the end of this month.

A decision of the commission can be expected until the end of the year, unless court proceedings are launched against Vrhovnik.

The police have pressed charges against Damir Vrhovnik over unconscientious conduct which led to the company's bankruptcy, officials at the Rijeka County Prosecutor's Office confirmed on Thursday. "The police charges were received a few days ago and by the end of the week they will be forwarded to the Municipal Prosecutor's Office which is authorised to deal with such cases because this is a criminal act punishable with a prison sentence of up to five years," County Prosecutor Drago Marincel told Hina.

According to the facts, the suspect faces extensive charges, Marincel said declining to reveal any more details about the charges which were pressed by the Rijeka crime police. A police investigation into the case was launched in August last year.

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