CROATIA'S DEFENCE AND NATIONAL SECURITY COUNCIL HOLDS SESSION

ZAGREB, Oct 24 (Hina) - Croatia's Defence and National Security Council (VONS) held a session on Thursday to consider taking necessary decisions concerning certain criminal offences and abuses in the business sector as well as in other areas of state and social life, and particularly in the process of ownership transformation and privatization. The Council discussed such steps pursuant to facts and stances the President of the Republic of Croatia, Franjo Tudjman, had expressed in an interview with journalists on October 22, 1996, the President's Office said. Following the Council's discussion, it was suggested to President Tudjman that on the ground of his powers under the Constitution Article 94 he ensure that bodies of the executive authority and the judiciary, all local self-government and administration units urgently take necessary steps in connection with violations of the law, abuse of office and immoral acts. It was agreed: 1) that the Croatian Privatization Fund should cancel all contracts with shareholders who had bought shares in amounts exceeding 70,000 kuna, at a discount (under a 1991 law 20,000 German marks worth), and that it should inform the Croatian Government and other competent bodies about violators; 2) that in all cases of abuse and violations of the law, the Croatian Government should relieve of duty officials and employees of state administration and public companies. Without exception such decisions should be made for all cases of exceeding the amount provided by law, by members of all state ministries (ministries of defence, interior, foreign affairs, reconstruction and development and finance), whose duty is to oversee the consistent application of the law and to watch over the national security. In the consideration of cases from other ministries no proceedings should be instituted against those who exceeded the amount slightly - less than double - considering the fact to that numerous small shareholders, in the exercise of their rights, exceeded the envisaged amount by concluding two or more contracts. 3) that authorities of municipalities, towns and counties should act in the same way, on the basis of the Fund's reports. 4) that all bodies of the judiciary, the State Judiciary Council, and the Justice Ministry, in line with their authority, should consider all cases of abuse of office and violations of generally accepted ethical principles, in order to straighten the legal system. 5) that investigations and court rulings should be accelerated in all proceedings against individuals and companies for abuses in the process of ownership transformation and privatization. (hina) 242201 MET oct 96