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STATE PROSECUTOR: PROBE LAUNCHED INTO ALLEGED IRREGULARITIES IN USE OF DEFENCE FUNDS

ZAGREB, June 5 (Hina) - The Office for the Fight Against Corruption and Organised Crime (USKOK) together with police is to launch an investigation to establish whether there was any wrong-doing in the use of funds which the Croatian Diaspora ensured and deposited in foreign accounts for the defence of Croatia in the 1990s, read an article published in Wednesday's issue of "Jutarnji List" daily.
ZAGREB, June 5 (Hina) - The Office for the Fight Against Corruption and Organised Crime (USKOK) together with police is to launch an investigation to establish whether there was any wrong-doing in the use of funds which the Croatian Diaspora ensured and deposited in foreign accounts for the defence of Croatia in the 1990s, read an article published in Wednesday's issue of "Jutarnji List" daily. #L# The case refers to some three million German marks deposited in an account in Villach, Austria, until 1998, when the then high official Hrvoje Sarinic transferred them to the account of the then ruling party Croatian Democratic Union (HDZ)'s foundation called the endowment of the Croatian state vow. Sarinic recently said in an interview to "Novi List" daily that he had transferred the money to the foundation's account in Privredna Banka following the order of former Croatian President Franjo Tudjman. In compliance with the act on distress and seizure, the State Prosecutor's Office has proposed a temporary ban on the management of that money until its status is solved in the court procedure and after it is established whether the money belongs to the state, Chief State Prosecutor Mladen Bajic was quoted by Jutarnji List. According to Bajic, apart from the probe in this transaction, investigations will be carried out in the movement of money, which was collected by the fund for the economic reconstruction and sovereignty of Croatia for the country's defence and deposited on other accounts in foreign banks. The USKOK has asked, via an investigation centre of the Zagreb County Court, for an international assistance in checking transactions in accounts in Austria, Switzerland and some other countries. Besides the USKOK and police, the office for the money laundering prevention will be engaged in the case, Bajic said. "Jutarnji List" says that after he took office, the incumbent Croatian President Stjepan Mesic produced all the documentation on the money transaction he found in the President's office to the police. The police processed the case in the early 2001 and the results of their investigation were handed over to the State Prosecutor's office, but so far nothing concrete has been done, Jutarnji List said. (hina) ms

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