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HSLS REQUESTS INVESTIGATION INTO SALE OF HIGHEST CIRCULATION DAILY

ZAGREB, Feb 25 (Hina) - Representatives of the Croatian Social Liberal Party (HSLS), a member of the governing two-party coalition, on Friday proposed at the House of Representatives that a commission of inquiry be formed to probe into the circumstances of the sale of 'Vecernji list' daily and try to establish the name of the actual owner of Croatia's highest circulation daily. The commission, whose establishment was requested by 21 HSLS representatives, should report to parliament about its results in three months. The Croatian Pension Insurance (HMO) sold the daily for little less than 20 million German marks, which is only five percent of the amount needed for the payment of pension allowances for one month. Considering that fact and that the daily was sold in a very short period, during Christmas and New Year holidays of 1997/98, the HSLS representatives believe the sale was not motivated solely by
ZAGREB, Feb 25 (Hina) - Representatives of the Croatian Social Liberal Party (HSLS), a member of the governing two-party coalition, on Friday proposed at the House of Representatives that a commission of inquiry be formed to probe into the circumstances of the sale of 'Vecernji list' daily and try to establish the name of the actual owner of Croatia's highest circulation daily. The commission, whose establishment was requested by 21 HSLS representatives, should report to parliament about its results in three months. The Croatian Pension Insurance (HMO) sold the daily for little less than 20 million German marks, which is only five percent of the amount needed for the payment of pension allowances for one month. Considering that fact and that the daily was sold in a very short period, during Christmas and New Year holidays of 1997/98, the HSLS representatives believe the sale was not motivated solely by financial reasons. The HSLS believes that the commission of inquiry should establish whether the director and members of the HMO Supervisory Committee knew while they were selling 53.61 percent of the daily's shares which legal or physical entities stood behind the buyer - Caritas Find Limited company from the Virgin Islands - and which legal and physical entities owned the company at the time of the purchase of 'Vecernji list' shares. HSLS representatives also request that it be established whether the agreed recapitalisation amounting to DM20 million was carried out and if so, how it affected the daily's ownership structure. The Commission should also be entrusted with establishing the credibility of indications that the 'Vecernji list' deal was actually a 'money laundering' case, as well as with establishing all relevant facts which relate to the covering up of data on the sale. According to the proposal, the commission would have 13 members, of whom six would be delegated by the Social Democratic Party (SDP)/HSLS coalition, three by the Croatian Democratic Union (HDZ), two by the parties of the coalition of the Croatian Peasants' Party (HSS), Istrian Democratic Assembly (IDS), Liberal Party (LS), and the Croatian People's Party (HNS), and one each by the Croatian Party of Rights/Croatian Christian Democratic Union (HSP/HKDU) bloc and national minorities. The commission would also investigate whether Borislav Skregro and Milan Kovac as members of the HMO Supervisory Board are responsible, both as regards mismanagement and the potential jeopardising of national security, especially in the light of the fact that 'Vecernji list' has significant influence on public opinion. (hina) jn rml

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