ZAGREB, May 9 (Hina) - It is impermissible that any company, particularly one owned by the State, can operate in opposition to all laws, the Sabor's Finance Committee stressed during a debate in the Lower House of the Croatian
National Sabor on an Audit Report conducted in the RH Alan. Following numerous objections regarding the business conducted by this company which is part of the Croatian Ministry of Defence, the Committee adopted the Audit Report and concluded that it should be submitted to the Interior Ministry, Financial Police, State Attorney's Office and the State Defender's Office. Each of these, will be responsible to submit reports within three months regarding their investigations. RH Alan is registered as a company for production resources for special purposes, yet in the period between 1997 to 1999, it was involved in several transactions for which it is not registered, State Auditor Sima
ZAGREB, May 9 (Hina) - It is impermissible that any company,
particularly one owned by the State, can operate in opposition to
all laws, the Sabor's Finance Committee stressed during a debate in
the Lower House of the Croatian National Sabor on an Audit Report
conducted in the RH Alan.
Following numerous objections regarding the business conducted by
this company which is part of the Croatian Ministry of Defence, the
Committee adopted the Audit Report and concluded that it should be
submitted to the Interior Ministry, Financial Police, State
Attorney's Office and the State Defender's Office. Each of these,
will be responsible to submit reports within three months regarding
their investigations.
RH Alan is registered as a company for production resources for
special purposes, yet in the period between 1997 to 1999, it was
involved in several transactions for which it is not registered,
State Auditor Sima Krasic said in explanation of the Report. RH Alan
kept no accounting ledgers, it did not regularly pay VAT nor profit
tax, Krasic said.
The majority of its total revenue which amounted to 172 million
kuna, came from the sale of services in constructing roads. The
company acted as a mediator in these contracts while the actual
construction was conducted by the army (HV and HVO). Sima Krasic
emphasised that RH Alan neither had the personnel nor the
qualifications nor the necessary infrastructure to conduct this
type of mediation.
It was via this company that the "Challenger" plane was obtained for
the President of the Republic and legal fees were paid for the
defence of suspects being tried in The Hague, which is not one of the
company's registered activities.
The company's management claims that a Government decision exists
by which RH Alan was not required to keep "accounting ledgers"
however the State Audit Office could not find this decision. There
is only a decision by which the business of this company, is a state
secret, Sima Krasic concluded.
In a debate that followed, Djuro Njavro (HDZ) said that it was good
that MP's could finally share light on one of the last "grey zones"
in the country's finances. We need to underline this company's
activities during the war and immediately after it and in future,
work more transparently, Njavro concluded.
Some MP's were irritated because there were no details regarding
the company's activities since its establishment in 1993 until the
end of 1996. This, naturally, is considered as confidential
however, there must be some documents in existence Dubravka Horvat
(SDP) added.
Regardless of the period when decisions were made, decisions made
by RH Alan's management should have had some backing while its
confidential nature of conducting business could have led to misuse
in order to gain material gains.
(hina) sp lml