ZAGREB, May 26 (Hina) - The former directors of Croatia's Pension Fund and Pension Insurance on Friday testified before a parliamentary commission of inquiry probing the sale of Croatia's largest circulation daily paper, Vecernji
List. The Pension Fund sold a majority package of the daily's shares over the 1997 Christmas holidays to Caritas Fund, an anonymously-owned company registered on the Virgin Islands shortly before the sale. The two former directors, Damir Zoric and Mladen Strukan, reiterated today that Vecernji List had been sold at the most favourable market price, and that the sale had been inevitable due to a chronic lack of money necessary for the payment of pensions. Explaining the circumstances of the sale, Zoric recalled the situation at the Pension Fund in December 1997 and a 500 million kuna deficit. He said Croatia's then prime minister Nikica Valentic and his ministers had assured
ZAGREB, May 26 (Hina) - The former directors of Croatia's Pension
Fund and Pension Insurance on Friday testified before a
parliamentary commission of inquiry probing the sale of Croatia's
largest circulation daily paper, Vecernji List.
The Pension Fund sold a majority package of the daily's shares over
the 1997 Christmas holidays to Caritas Fund, an anonymously-owned
company registered on the Virgin Islands shortly before the sale.
The two former directors, Damir Zoric and Mladen Strukan,
reiterated today that Vecernji List had been sold at the most
favourable market price, and that the sale had been inevitable due
to a chronic lack of money necessary for the payment of pensions.
Explaining the circumstances of the sale, Zoric recalled the
situation at the Pension Fund in December 1997 and a 500 million
kuna deficit. He said Croatia's then prime minister Nikica Valentic
and his ministers had assured him the solution to the matter called
for the sale of shares from the Pension Fund portfolio.
"Nine tenders responded to the bid for the purchase of Vecernji
List, and Caritas Fund's bid was the most favourable," Zoric said.
Responding to a question from commission of inquiry chairman Josko
Kontic, Zoric said he had not been interested in who was behind
Caritas Fund, but only in seeing the money remitted in the entire
amount and on time. "Which is what happened," he added.
Zoric confirmed he had discussed the pension issue with Ivic
Pasalic, a formerly influential presidential adviser, on several
occasions, in an attempt to urge the President of the Republic's
Office to help in overcoming the difficult situation.
"Marijan Hanzekovic, who represented Caritas Fund when the
contract was being drawn up, can provide you with the most
information about the legal aspect of the sale," Zoric said,
reminding several times that Hanzekovic was a member of the
Croatian Social Liberal Party.
Mladen Strukan's deposition matched Zoric's almost completely. He
told Kontic it now seemed possible to him that the formerly ruling
HDZ had stood behind the Vecernji List purchase, but that back in
1997 he gave it no thought.
The media for a long time speculated that the daily had in fact been
bought for the HDZ, especially following the publication of a
transcript of late Croatian and HDZ president Franjo Tudjman's
conversations with Pasalic.
Pasalic, when interrogated by the commission yesterday, asserted
the transcript was a forgery.
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