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SUSPENDED HERCEGOVACKA BANKA MANAGEMENT WILLING TO COOPERATE

SARAJEVO, June 19 (Hina) - The replaced management of Mostar's Hercegovacka Banka has agreed to cooperate with the new management appointed by the international community's High Representative in Bosnia and with the authorities of Bosnia's Croat-Muslim federation in order to expedite an inspection of the bank's operations, Sarajevo-based media reported on Tuesday. The former management, however, is unsure the interim one will accept former directors as interlocutors and associates. On Monday federal Finance Minister Nikola Grabovac held talks with Ivica Karlovic, the bank's suspended director, and his associates, who proposed engaging an independent international auditor to establish the real situation in Hercegovacka Banka. The bank's former directors were once again firm in dismissing claims about illegal transactions, particularly the embezzlement of DEM54 million from the
SARAJEVO, June 19 (Hina) - The replaced management of Mostar's Hercegovacka Banka has agreed to cooperate with the new management appointed by the international community's High Representative in Bosnia and with the authorities of Bosnia's Croat-Muslim federation in order to expedite an inspection of the bank's operations, Sarajevo-based media reported on Tuesday. The former management, however, is unsure the interim one will accept former directors as interlocutors and associates. On Monday federal Finance Minister Nikola Grabovac held talks with Ivica Karlovic, the bank's suspended director, and his associates, who proposed engaging an independent international auditor to establish the real situation in Hercegovacka Banka. The bank's former directors were once again firm in dismissing claims about illegal transactions, particularly the embezzlement of DEM54 million from the Croatian state budget and the existence of secret accounts at the disposal of Bosnia's Croatian Democratic Union party. The suspended management did not, however, deny the possibility that "individual omissions" had been made. The spokesman for Hercegovacka Banka's interim management, Johan Verhayden, told reporters today they were surprised at the irresponsible claims the former management made after talking to Grabovac. The former management has no power over the bank anymore and in the past refused to cooperate in any way, he said. Their statements are cynical to the say the least, Verhayden said. (hina) ha sb

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