HEATED PARLIAMENTARY DEBATE ON IRREGULARITIES IN WORK OF 'RH ALAN'

ZAGREB, May 24 (Hina) - The Sabor's House of Representatives held a stormy discussion on the State Audit's report on the work of the RH Alan company, which was registered for the manufacturing of means for special purposes and which works within the Defence Ministry. The auditing covered 1997-1999 period. The national parliament's lower house took note of the report that indicated many not legal activities in RH Alan's work, and MPs concluded that the report should be forwarded to relevant state organs to launch an investigation. The Interior Ministry, financial police, the state prosecutor's office and the state attorney's office should submit reports on inquires in those illegal businesses, within next three months. Some irregularities cited in the Audit's report are the failure to pay taxes, the reporting of lower incomes and profits compared to the real state of affairs, the failure to keep books as well as businesses for which the company has not registered, such as the purchase of the "challenger" plane for the late Croatian President Franjo Tudjman, the payment of defence lawyers of Croat indictees in The Hague, and mediation in the conclusion of contracts for the road construction. Although it was RH Alan's founder, the former Government did not control the company's businesses, asserted Damir Kajin on behalf of the Istrian Democratic Alliance (IDS) bench. The confirmation of this, he added, was given by a former Defence Minister, Andrija Hebrang, who was quoted by a newspaper as saying that he would explain his resignation by the fact that he could not put this company's work in order. This implies that the company was under the control of President Franjo Tudjman, Kajin draw a conclusion. It is very interesting why RH Alan mediated in the construction of roads, Kajin added. As RH Alan gave those businesses to the "Monitor" firm, namely to the Croat Community of Herzeg-Bosnia, the money of tax payers in Croatia was directed, thus, to Herzegovina, the IDS deputy said. He concluded that RH Alan should be "shut down" and a parliamentary commission set up to audit the activities of RH Alan from 1993 to 1996. On behalf of the Croatian Social Liberal Party (HSLS) bench, Josko Kontic, said he would agree with Kajin's proposal, but there were no books kept for the company's businesses in that period. Kontic added it was incredible that persons that did not work in RH Alan used the company's credit cards without restriction and registration. Ivan Ninic on behalf of the Social Democratic Party (SDP) bench, said the fact that the then reconstruction, interior and finance ministers had attended the company's assemblies and known about RH Alan's work, showed how former authorities respected laws. Ninic highlighted the "secret" connection between RH Alan, Monitor and the 66th regiment the commander of which was General Ljubo Cesic Rojs. The SDP deputy recalled that the Croatian state had been left without construction machines, worth 50 million German marks, which it allegedly gave to Herzeg-Bosnia as a gift. It is not true, replied Cesic Rojs, who is a deputy from the Croatian Democratic Union (HDZ) list for the Diaspora. During the debate this HDZ member incessantly asked to respond to other MPs claims. He said he was proud of all what his sappers had done. If they had not worked around the clock, Croatia would not have had hundreds of kilometres of roads. He claimed that Monitor was no mysterious company and nothing had been done without control. In all of its tenders Monitor was always by 50 percent cheaper than others, and the 66th regiment can sue the Croatian sate for unsettled debts, Cesic Rojs asserted. (hina) jn ms