ZAGREB, Jan 31 (Hina) - According to a report compiled after the State Audit carried out analyses of ownership transformation and privatisation from mid-2001 to October 2002, the value of capital decreased in 242 cases in comparison
to the situation at the time of privatisation, the total number of employees dropped by 60 percent, bankruptcy procedures were initiated in 30 percent of companies and 73 percent failed to realise development programmes.
ZAGREB, Jan 31 (Hina) - According to a report compiled after the
State Audit carried out analyses of ownership transformation and
privatisation from mid-2001 to October 2002, the value of capital
decreased in 242 cases in comparison to the situation at the time of
privatisation, the total number of employees dropped by 60 percent,
bankruptcy procedures were initiated in 30 percent of companies and
73 percent failed to realise development programmes. #L#
Presenting the report in parliament, the Chief State Auditor, Sima
Krasic, said the value of capital in 242 companies accounted to 4.44
billion German marks at the time of privatisation, while at the time
audits were carried out it fell to 3.26 billion.
Of 124,000 employed people, less than 49,000 retained their jobs.
The process of bankruptcy was initiated in 71 companies due to their
problems in business operations and in meeting financial
obligations.
According to the report, the audits established a total of 684 cases
of wrongdoing in those 242 companies.
From May to October 2002, audits were carried out in 143 companies
and only eight could be proud of having had no irregularity.
Irregularities found in other companies range from acts which had
characteristics of a crime (83 cases) through violations of
economic laws (50 cases) to economic transgression (five cases),
Krasic said.
The State Audit Office filed 50 suits with the State Prosecution for
acts which can be treated as crimes. They mostly refer to abuse of
office and authority in business activities, the conclusion of
harmful contracts, unconscientious work, she added.
The report was supported by parliamentary committees for economic
development and reconstruction, and finance and budget.
With regard to problems surrounding the Suncani Hvar case, Jadranko
Mijalic of the Social Liberals (HSLS), demanded the resignations of
a Vice Premier, Slavko Linic, Tourism Minister Pave Zupan-
Ruskovic, the vice president of the Croatian Privatisation Fund
(HFP), Kresimir Starcevic, and a member of its governing board,
Bozidar Pankretic, so that some "more moral people can replace
them".
Speaking on behalf of the Croatian Peasant Party (HSS) bench,
Ljubica Lalic concluded from what she read in the report that the
process of ownership transformation and privatisation had been the
legal plunder of state assets.
Lalic said that state authorities, although they had considerable
influence on that process through the HFP and the Pension Insurance
Fund, failed to sanction irresponsible behaviour.
Those who destroyed companies gave back shares to the HFP and were
awarded for the whole thing when they were given back money. They
siphoned the capital out of the companies and sold assets,
collecting money on their private accounts, without being
sanctioned, Lalic asserted.
A member of the Croatian Democratic Union (HDZ) and a former head of
the HFP, Ivan Penic, opposed the HSS deputy's assertion that the
privatisation had presumably been the looting of state property.
Damir Kajin of the Istrian Democratic Assembly (IDS) welcomed as he
said the definite de-mystification of the process of privatisation
and ownership transformation. He accused a deputy of the HDZ, Damir
Vukic, of having destroyed the fleet of the Croatia Line shipping
company. As a result he was reprimanded by Sabor President Zlatko
Tomcic who warned him not to accuse other colleagues while he was
taking part in parliamentary debates.
Kajin pointed to the problem that the privatisation was still being
carried out in accordance to the law from 1996.
The State Audit's report shows for the first time what happened in
the privatisation of the tourist sector, and points to cases when
some tourist companies were sold at a price which accounted for only
30 percent of the book value.
Dario Vukic insisted on auditing the privatisation of the Suncani
Hvar company so that one can see what is going on today, without
diminishing the importance of events from the previous
privatisation (during the HDZ rule), he said.
(hina) ms sb