CROAT TESTIFIES ABOUT TRANSFER OF MONEY TO HDZ'S BANK ACCOUNT

ZAGREB/KLAGENFURT, Sept 18 (Hina) - Croatian emigrant Radovan Smokvina was heard on Thursday by an investigating judge in Klagenfurt, Austria, as part of an investigation into the illegal transfer of Croatian emigrants' money into the bank account of a Croatian Democratic Union (HDZ) party foundation. #L# "During a two-hour hearing, I told the investigating judge what I know about the whole case," Smokvina told Hina over the phone. Smokvina said that the investigation by the Austrian court into the transfer of 1.5 million euros deposited by Croatian emigrants into a bank in Villach in 1998 to the foundation's account in Privredna Bank Zagreb had been going on for two years. He said he did not know in which stage the investigation was against a former Croatian premier and advisor to the first Croatian president Franjo Tudjman, Hrvoje Sarinic. The investigation against Sarinic, who transferred the money to Croatia, was launched after Smokvina reported the case to the police. Smokvina sued the HDZ foundation for the same reason with the Zagreb Municipal Court. He claims that in 1991, after the then assistant to the emigration minister, Gojko Susak, had called on Croat emigrants to help in the defence of Croatia, he paid 40,000 Swiss francs into the bank account in Villach. Smokvina believes that the money was used for other purposes, and has requested a refund. The investigation into the emigrants' money was joined by the Croatian State Prosecutor's Office and police after 2000. Last week, the police pressed charges against Ivic Pasalic, Ante Beljo and Ivan Aralica on suspicion of causing damage to the state worth 300,000 kuna. The three are believed to have spent interest on the 1.5 million euros transferred from Austria, which police and the prosecution claim belong to the government and not the HDZ foundation. Last June, the Zagreb Municipal Court passed a ruling imposing a temporary ban on using that money. (hina) rml