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PASALIC: PROBE INTO USE OF FUNDS - POLITICAL SHOW OF AUTHORITIES

ZAGREB, June 5 (Hina) - An investigation launched by the State Prosecutor's Office in possible wrong-doing in the use of the money earmarked for Croatia's defence is "a political show of the incumbent authorities that are diverting the public attention from the real problems to fabricated scandals," Ivic Pasalic, the head of the endowment of the Croatian state vow, was quoted by the Croatian Television's news programme late Tuesday night.
ZAGREB, June 5 (Hina) - An investigation launched by the State Prosecutor's Office in possible wrong-doing in the use of the money earmarked for Croatia's defence is "a political show of the incumbent authorities that are diverting the public attention from the real problems to fabricated scandals," Ivic Pasalic, the head of the endowment of the Croatian state vow, was quoted by the Croatian Television's news programme late Tuesday night. #L# The Jutarnji List daily quoted Chief State Prosecutor Mladen Bajic as saying that the Office for the Fight Against Corruption and Organised Crime (USKOK) together with police is launching 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. 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 he had transferred the money to the foundation's account in Privredna Banka following the order of former Croatian President Franjo Tudjman. In March 2000, the police checked all the accounts and business dealings of the endowment, including that transaction, and no wrong-doing was established, or at least nobody informed us of anything like that, Pasalic said in the news programme. Pasalic added that he was surprised that "after more than two years and after all responsible state bodies were notified of all the details and no action was taken, all of sudden (they) are making a big deal out of this." In Pasalic's opinion, it is a big political circus directed by the current authorities. If there is anything contentious, two years were enough to say what was contentious and to examine it in regular procedure without any spectacle, Pasalic said. (hina) ms

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