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NEITHER FOREIGN MINISTER NOR HIS WIFE DID ANYTHING ILLEGAL - MINISTRY

Autor: ;half;
ZAGREB, Nov 4 (Hina) - In connection with recent media reports aboutForeign Minister Miomir Zuzul, the ministry issued a press release onThursday saying that Zuzul sent a letter to the entire Ivo SanaderCabinet today to explain that the "alleged conflict of interest" he issuspected of is "unfounded".
ZAGREB, Nov 4 (Hina) - In connection with recent media reports about Foreign Minister Miomir Zuzul, the ministry issued a press release on Thursday saying that Zuzul sent a letter to the entire Ivo Sanader Cabinet today to explain that the "alleged conflict of interest" he is suspected of is "unfounded".

According to the press release, the campaign against Zuzul in Parliament and the media, in which the finger is pointed also at the Government, prompted the minister to send to the Government and the media an integral chronology of events.

The chronology states that "the whole alleged conflict of interest case is founded on the false and completely untrue claim that the Karin Univerzal Inzinjering company bought the Imostroj company, and that the Government favoured the new owner by writing off the company's debt to the (state)".

Karin Univerzal Inzinjering did not buy Imostroj but its assets in receivership, read the press release.

It said the Government decision to write off the debt could in no way have favoured Karin Univerzal Inzinjering because this company was never the owner of Imostroj, and that the write-off made it possible for 168 employees to receive salaries they had not received for three years.

The press release said the receivership and sale of Imostroj assets were processed at the Commercial Court in Split, and that the Government did not and could not have had any connection with it.

Citing Zuzul's letter, the press release said that neither the minister nor his wife Tatjana had ever received payments from Karin Univerzal Inzinjering or any other related person.

The press release went on to say that Karin Univerzal Inzinjering had signed a contract for the purchase of 50 percent of interest in the MTS (International Trade and Consulting) company, for the purpose of expanding business in Zagreb, but that it abandoned the project after purchasing Imostroj's assets.

Citing Zuzul's letter, the press release said the only transactions between Karin Univerzal Inzinjering and MTS were loans to MTS intended to enable MTS to operate in the period when it was being taken over by Karin Univerzal Inzinjering and the latter was the co-owner of MTS.

The minister's letter went on to say that all loans to MTS were used to service the company's liabilities, and that after the termination of the purchase contract, which is under way, MTS is obliged to repay the loans.

The foreign ministry press release said that "all these facts undoubtedly demonstrate that neither the minister nor his wife did anything immoral or illegal," adding that they were nevertheless being "mercilessly" attacked by some media which "ignore the truth and the facts, manipulating them instead".

It added the minister and his wife would press charges, and that the damages would go to a charity helping handicapped children.

The press release said the minister's letter presented all relevant facts and put a lid on the public debate about the case.

Zuzul's letter to the media, delivered by fax, enclosed documents about relationships between MTS and Karin Univerzal Inzinjering, and between Karin Univerzal Inzinjering and Imostroj, the loan contract between MTS and Karin Univerzal Inzinjering, and these two companies' accounting reports.

(Hina) ha

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