"In the last five years two business policies have existed in Zagreb Holding and initially, in only two years, significant long-term obligations in the amount of HRK 7.5 billion were incurred, and it was not defined by contract who would be fulfilling them, so the bulk of those obligations fell on Zagreb Holding," Covic said, proposing that the company's loss of 500 million kuna be redistributed over the coming business years.
Covic supported Mayor Milan Bandic's request for an audit of Zagreb Holding's operations, adding that the job would not be difficult as it had already been established that the public transportation company ZET, sports facilities and investments in real estate had generated most of the loss.
He said that the city government was still avoiding to tackle the problem of ZET, and that Zagreb Holding, with revenues from bus and tram tickets of less than 300 million kuna and the current level of city incentives, was unable to cover its operating costs.
Asked by Social Democrat Ivana Mlinar Horvat about reports of numerous scandals that were being revealed in Zagreb Holding, Covic said that there not many scandals, but rather many reports of suspected wrongdoing which he said eventually did not lead to criminal proceedings.
He added, however, that a recent case of illegal connection of homes to the public water supply system, which Zagreb Holding reported to the Office for the Suppression of Corruption and Organised Crime, showed that that long-lasting practice had come to an end.
"Three employees were suspended and the procedure was launched to fire them, and there will be more dismissals because I don't believe that only three people were involved," said Covic.