ZAGREB, Jan 16 (Hina) - The State Audit Office audited privatisation in 143 Croatian companies between May and October 2002, concluding that the process had been carried out in keeping with the law and other regulations in only
eight.
ZAGREB, Jan 16 (Hina) - The State Audit Office audited
privatisation in 143 Croatian companies between May and October
2002, concluding that the process had been carried out in keeping
with the law and other regulations in only eight. #L#
Irregularities for which there is ground to suspect a criminal act
or an offence were established in 82 companies.
The data comes from the second report on privatisation audits which
the competent state office has forwarded into parliament.
The report refers to audits conducted in 143 companies in May-
October last year covering privatisation, exchange of stocks
between the Croatian Privatisation Fund, pension funds and other
legal and physical persons, and stocks or shares given in
management.
The report notes that irregularities discovered in 83 companies
provided grounds to suspect criminal acts, 50 to suspect legal and
five economic offences.
The State Audit Bureau discovered irregularities which constitute
criminal acts in 41 companies, pressing 50 charges with competent
state prosecutor's offices. In 20 companies charges had already
been pressed by other bodies.
The criminal acts mainly refer to abuse of authority in business,
the conclusion of harmful contracts, abuse of office and authority,
unconscientious work, and non-submission of share ownership data
to the Securities Commission.
The data indicate that the main goals of privatisation have not been
achieved -- the value of capital decreased, the number of the
employed was cut considerably, and most companies failed to realise
development projects.
Data for all 242 companies which have been audited so far show that
the value of capital, from DEM4.44 billion at the time of
privatisation in mid-2001 went down to DEM3.26 billion at the time
of the audit in October 2002.
Auditors also established that a hefty share of assets, some DEM250
million, had not been included in the company's estimated value or
had been estimated as lower that the real one.
The period between privatisation and auditing also saw a drastic
drop in employment, from 124,000 to 48,900 -- indicating that about
75,000 jobs were lost in 242 companies.
Only 35 of said companies realised their development programmes, 30
did so in part, while 117, or 73 percent, failed to do so.
Due to difficulties in business and the inability to meet
liabilities, bankruptcy proceedings were filed in 71 companies.
(hina) ha sb