DISMISSAL OF HFP MANAGEMENT BOARD PARALYSES PRIVATISATION

ZAGREB, Feb 10 (Hina) - Last week's decision of the government to relieve of duty the management board of the Croatian Privatisation Fund (HFP) has paralysed the privatisation of a large segment of the state portfolio because more than 90% of decisions related to privatisation cannot be made without the management board, HFP officials stated. #L# Last week the government dismissed the HFP management board consisting of Slavko Linic, Mato Crkvenac, Pave Zupan Ruskovic, Ljubo Jurcic and Bozidar Pankretic due to irregularities in the privatisation of the Suncani Hvar hotel company. The government also decided that the HFP should be reorganised and new personnel employed and entrusted the Economy Ministry with this task. The dismissal of the HFP management board has blocked the institution's activities and the privatisation process. New tenders cannot be announced nor is it possible to select the best bidders in ongoing proceedings without the approval of the HFP management board. Several sources have said that finding a way out of the current situation will take some time. Government officials had previously announced launching the transformation of the HFP, and coalition partners have been discussing the concept of privatisation and the HFP's transformation for some time. A project for the transformation of the Fund, which should be discussed by the government soon, was supported by the ruling coalition, government officials stated previously. Once reorganised, the HFP would also be in charge of managing the state property. As the previous instruction to ministries and state institutions to list and enter their property into the register of state property and regulate their property issues has failed to yield results, this task would be taken over by the HFP. (hina) rml sb