GUCIC FATHER, SON, AND PARTNER SUSPECTS IN ECONOMIC CRIMES

ZAGREB, May 23 (Hina) - The directors of two companies from the Josip Gucic-owned Gucic Group were arrested for economic crimes by Zagreb's police on Monday and turned over to the Zagreb County Court. The two arrested were Gucic's elder son Zvonimir, the director of the Naprijed company, and Krsto Ramic, the director of the NIK garment company. The two are under suspicion of abusing power and damaging NIK for more than 194 million kuna, in cooperation with the companies' owner Josip Gucic and the assistance of another three persons. Zagreb police spokesman Goran Volarevic, the head of the Economy Ministry department for economic crimes, Tomislav Buterin, and the head of the same department at Zagreb police, Zoran Kosutic, today briefed the press on the months-long investigation of Gucic Group companies and the ensuing arrests. According to police reports, Josip Gucic and Krsto Romic as responsible parties at NIK between 1993 and 1997 withdrew DM125 million worth of loans from Zagrebacka and Privredna banks, with collateral from Gucic's other companies, and placed them as advance payments for companies Gucic owns abroad. The loans provided an illegal property gain of 194 million kuna for Gucic's foreign companies to the damage of NIK, which was unable to return the loans to the two banks. The loans were paid with property belonging to the other companies Gucic owns in Croatia. NIK is registered as a company with no property and a basic capital of 19,000 kuna. Josip Gucic, whom police state as the chief suspect in the loan scandal, has been undergoing medical treatment in Munich since May 19. Police, who claim there is sufficient evidence against Gucic, will summon him for an interrogation upon his return. (hina) ha jn