ZAGREB, May 3 (Hina) - The Croatian parliament adopted with a majority vote on Thursday a privatisation auditing law whereby an audit may be undertaken in every company for which there is founded suspicion that embezzlement occurred
during privatisation. The government turned down most of some 60 amendments moved by the MPs. A very heated debate was held on a government amendment whereby the State Audit Bureau could launch proceedings to temporarily ban the management of shares if it was established that they had been acquired illegally. MPs of the opposition's Croatian Democratic Union (HDZ) said the government amendment represented a counter-constitutional impinging on private property which would obstruct investing in the economy. Despite their vote against it, the amendment was adopted. The HDZ voted against the whole law after the turning down of their amendment to have all formerly socially-owned
ZAGREB, May 3 (Hina) - The Croatian parliament adopted with a
majority vote on Thursday a privatisation auditing law whereby an
audit may be undertaken in every company for which there is founded
suspicion that embezzlement occurred during privatisation.
The government turned down most of some 60 amendments moved by the
MPs. A very heated debate was held on a government amendment whereby
the State Audit Bureau could launch proceedings to temporarily ban
the management of shares if it was established that they had been
acquired illegally.
MPs of the opposition's Croatian Democratic Union (HDZ) said the
government amendment represented a counter-constitutional
impinging on private property which would obstruct investing in the
economy. Despite their vote against it, the amendment was adopted.
The HDZ voted against the whole law after the turning down of their
amendment to have all formerly socially-owned companies which were
privatised audited in the order in which decisions on privatisation
had been issued.
According to the new law, the audit may be launched in companies for
which there is founded suspicion that embezzlement occurred during
privatisation, for instance if shares were not bought and paid in
line with the law, or if they were bought at a value lower than
estimated.
The new law stipulates that an audit request may be filed by a wide
range of people and institutions, including shareholders, small
shareholders' associations, trade unions, management and
supervisory boards, pension and health funds, offices of the state
prosecutor and the state attorney, the government, and the Croatian
National Bank.
Audits will be mandatory for companies whose rehabilitation was
financed by the government and which are financed from the state
budget either entirely or only in part.
An audit request must be filed within six months of the law's coming
into force. All audits should be completed by Jan. 1, 2003 at the
latest.
The privatisation audits will be carried out by the State Audit
Bureau, which should submit to parliament a report on its
performance every six months.
By having the privatisation auditing law adopted, the ruling six-
party coalition has kept one of the biggest promises it made ahead
of the January 2000 elections.
(hina) ha sb