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PUBLIC PROSECUTOR STILL INVESTIGATING CLAIMS ABOUT IMOSTROJ, MTS

ZAGREB, Nov 12 (Hina) - Chief Public Prosecutor Mladen Bajic has saidthat before the end of an ongoing investigation he cannot comment onmedia reports saying that the Civil Department of the PublicProsecutor's Office has established that there were no unlawfulelements in the bankruptcy and sale of the Imostroj company.
ZAGREB, Nov 12 (Hina) - Chief Public Prosecutor Mladen Bajic has said that before the end of an ongoing investigation he cannot comment on media reports saying that the Civil Department of the Public Prosecutor's Office has established that there were no unlawful elements in the bankruptcy and sale of the Imostroj company.

The Public Prosecutor's Office is still investigating the lawfulness of Imostroj's bankruptcy and there is no new information for the public, Bajic told Hina over the phone.

The Office is investigating the lawfulness of the company's bankruptcy on the basis of press reports and a request by Foreign Minister Miomir Zuzul.

Bajic said that his office would issue a public statement after the investigation.

A Croatian daily reported today that the Civil Department of the Public Prosecutor's Office, after investigating the affair for several days, concluded that there had been no illegal activities in the government's write-off of Imostroj's debt.

The daily said that the Office's Criminal Department, which in recent days has been collecting evidence on Zuzul's potential responsibility in the case of Imostroj and MTS, a company owned by his wife, was expected to present its results.

Last week, the media reported that in January this year Zuzul's wife, owner of the MTS company, signed a contract on the sale of her company shares with the owner of the "Karin univerzal inzenjering" company, Ivan Karin. The media brought this in connection with the government's decision to write off Imostroj's debt so as to enable the payment of workers' salaries, and the fact that "Karin univerzal inzenjering" bought the property of the bankrupt Imostroj company.

The Zuzuls have dismissed some media reports that they were in conflict of interest, claiming that did not do anything illegal, and sued some media.

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