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CHIEF STATE PROSECUTOR SAYS HIS OFFICE INVESTIGATING ZUZUL CASE

ZAGREB, Nov 6 (Hina) - Chief state prosecutor Mladen Bajic said onSaturday the State Prosecutor's Office was investigating if thereceivership of the Imostroj company was in line with the law,following a request by Foreign Minister Miomir Zuzul and mediaallegations that he was in conflict of interest in the case.
ZAGREB, Nov 6 (Hina) - Chief state prosecutor Mladen Bajic said on Saturday the State Prosecutor's Office was investigating if the receivership of the Imostroj company was in line with the law, following a request by Foreign Minister Miomir Zuzul and media allegations that he was in conflict of interest in the case.

Bajic said the county prosecutor's office in Split was also engaged to investigate the circumstances of Imostroj's receivership and under which circumstances its assets were purchased by the Karin Univerzal Inzinjering company.

Bajic said the State Prosecutor's Office on November 4 received a letter from Zuzul requesting that the State Prosecutor's Office investigate if he and his wife had broken the law in any way.

Earlier this week the media and opposition politicians uncovered information saying that Zuzul was in conflict of interest in the Imostroj case.

The media reported that the minister's wife Tatjana and the owner of Karin Univerzal Inzenjering, Ivan Karin, signed a contract in January on the sale of shares in her MTS company. Under the contract, Karin was to pay Zuzul's wife 500,000 kuna (approx. EUR66,700) for a 50-percent share in MTS. In June Karin bought, at a price of 6.3 million kuna, the bankrupt Imostroj company, whose debt of 6.24 million kuna was written off by the Government in September.

Zuzul on Wednesday dismissed claims that he was in conflict of interest at the time when the Government made the decision to write off Imostroj's debt. He said the contract was terminated because it had not been implemented and that no payments were ever made.

However, the media on Thursday revealed documents showing that there had been five transactions between the two companies, totalling 143,000 kuna, which prompted opposition MPs to demand Zuzul's resignation.

Later that day the Foreign Ministry issued a press release carrying a letter in which Zuzul outlined the chronology of events. The press release said the letter presented all relevant facts and put a lid on the public debate about the case.

The press release said the minister had sent the letter to the Ivo Sanader Cabinet to explain that the "alleged conflict of interest" he is suspected of is "unfounded".

The press release said that "all (the) facts undoubtedly demonstrate that neither the minister nor his wife did anything immoral or illegal," but that they were nevertheless being "mercilessly" attacked by some media which "ignore the truth and the facts, manipulating them instead".

It added the minister and his wife would press charges.

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