GOVT. POINTS TO ALARMING BREACHES OF DUTIES IN MANAGEMENT OF COMMODITY STOCKPILES

ZAGREB, July 20 (Hina) - A deficit of 144 million kuna (approximately 18 million US dollars) is established in the state- run commodity stockpiles. In addition, it has been found out that there were violations of contracts concluded with companies in charge of warehousing and the unauthorised usage of the state commodity stockpiles at an alarming scale. All of this contained elements that posed a threat to the security of the Republic of Croatia, disturbed the situation at market, led to grey economy, disrupted the payment operations, monetary system and the state budget, the Government said at its regular session on Thursday. Therefore, the Government asked the ministries of economy and agriculture to draft new legislative solutions regulating the state-run commodity stockpiles, by the end of September. It also requested from the State Prosecutor's office to press charges against those responsible fore the aforementioned violations. At the session the Government adopted a report on the state of affairs in the commodity stockpiles and the report will be forwarded to the Sabor. The Government gave up from a conclusion to propose to the national parliament the set-up of a commission of inquiry the task of which should be to establish facts in reference to the commodity stockpiles. This is the task of other competent state bodies, a Deputy Prime Minister, Zeljka Antunovic said. Economy Minister Goranko Fizulic informed that of the total deficit, 143.9 million kuna referred to a deficit in agricultural produce and foodstuffs, and over 203,000 kuna were registered as a loss in non-food products. An extraordinary control was conducted in May and June within 148 legal entities (companies or small businesses), whose job is the storage, at 163 sites. In the case of 34 storing companies, a deficit was established (13 had a lack of wheat, while the cattle were missing with 10 entities). Of the deficit in wheat, 44 percent was missing in the company "Slavonija" in the eastern town of Zupanja, while 78 percent of the deficit in the cattle was established with "PIK Vrbovec". On the day 30 June there were goods valued 550 million kuna ($68.75 million) at the state-run commodity stockpiles. On that day the state-run commodity stockpiles had claims of 1.1 billion kuna, and debits of 536 million kuna, Fizulic informed the Government. The commodity stockpiles had been used for the implementation of the credit and social policy, which is contrary to law, said a Deputy Prime Minister, Slavko Linic. Such conduct constituted a threat to the security of the country as in case war erupted we would have no enough wheat, Linic explained. He asserted that commodity stockpiles had been exploited for the grey economy, the disruption of the situation at market, and the disturbance of payment operations and state budget, whereas Finance Minister Mato Crkvenac added all this had caused damage to the monetary system. This is a part of a broader story how the money of tax payers and the state property were used for the inflow of money into "pockets of individuals", Interior Minister Sime Lucin commented. He added that a majority of its job had been done by the Interior Ministry and matters were presented to courts, and in this context he urged other ministries to contribute to the acceleration of the entire process of clarification of murky businesses regarding the state-run commodity stockpiles. (hina) ms