ZAGREB, May 21 (Hina) - The Finance Ministry has announced pressing charges against several persons from the RH-Alan state company for having damaged the state budget by some 193 million kuna (approx. $23.6 million) between 1997-9.
The profits reported by RH-Alan, which operates within the Defence Ministry, were lower than those actually made. The company, by paying lower taxes, short-changed the state budget for 45.3 million kuna (approx. $5.5 million) over a three-year period, the Finance Ministry says in a report forwarded to parliament. RH-Alan did not pay tax, did not keep business books, and failed to register some deals, for instance the purchase of a challenger aircraft for former President Franjo Tudjman, or pay attorney fees for the defence of Croats before the Hague war crimes tribunal. It was also established that 117.7 million kuna (approx. $14.2 million) were transferred from the Defence Min
ZAGREB, May 21 (Hina) - The Finance Ministry has announced pressing
charges against several persons from the RH-Alan state company for
having damaged the state budget by some 193 million kuna (approx.
$23.6 million) between 1997-9.
The profits reported by RH-Alan, which operates within the Defence
Ministry, were lower than those actually made. The company, by
paying lower taxes, short-changed the state budget for 45.3 million
kuna (approx. $5.5 million) over a three-year period, the Finance
Ministry says in a report forwarded to parliament.
RH-Alan did not pay tax, did not keep business books, and failed to
register some deals, for instance the purchase of a challenger
aircraft for former President Franjo Tudjman, or pay attorney fees
for the defence of Croats before the Hague war crimes tribunal.
It was also established that 117.7 million kuna (approx. $14.2
million) were transferred from the Defence Ministry to the RH-Alan
account between 1997-9, which the company then transferred to the
account of the Israel-based NEVADA TRADING LIMITED company.
There is no documentation as to this transfer, neither at RH-Alan
nor at the Defence Ministry. Due to suspicion that military figures
were involved in the illegal transfers, the Finance Ministry
forwarded its report to the military police as well.
Vladimir Zagorec, a retired general who served as assistant defence
minister, claims the money was used to pay for weapons for the
Croatian Armed Forces and that there is a detailed account for every
dollar spent, Jutarnji list daily said in the May 20 issue.
The Finance Ministry report further says RH-Alan signed a harmful
contract with the Los Angeles-based LATHAM & WATKINS law firm,
damaging the state by 21.7 million kuna (approx. $2.6 million). An
attorney with said firm was engaged for years in the defence of
Tihomir Blaskic, a Bosnian Croat general, before the war crimes
tribunal in The Hague.
Inaccurate book-keeping, incorrect reporting on property, profit
and spending data, the concealment of facts and payments made on
accounts in other state without any permission are just a few of the
illegal activities committed at RH-Alan which will provide ground
for pressing charges against accountable parties, reads the
Finance Ministry report which has been signed by Minister Mato
Crkvenac.
(hina) ha sb