'Spice' affair

Court listens to recordings of gov't sessions in Podravka fraud trial

19.09.2011 u 15:55

Bionic
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At the trial of former Deputy Prime Minister Damir Polancec and other persons accused of wrongdoings in the Koprivnica-based food company Podravka, the court on Monday listened to audio recordings of government sessions at which Polancec had presented amendments to a shareholders agreement between the oil companies INA of Croatia and MOL of Hungary.

Prosecutor Tamara Laptos would not say why, among extensive evidence, a proposal was made to listen to those recordings. The media previously speculated that in exchange for management rights over INA, MOL had given a loan for the purchase of 10.64 percent of Podravka shares.

The recordings that were listened to today were made in late 2008 and in January 2009, and the court will continue listening to audio recordings from government sessions on Tuesday.

Once evidence is presented whereby the anti-corruption agency USKOK wants to prove that the eight indictees in the case conspired to buy with Podravka's money a majority stake in that food company, defrauding it of HRK 400 million, the defence will present its evidence.

Next week, the first witnesses are due to testify in this trial. USKOK has requested questioning more than a hundred witnesses, and the defence about 30.

The witnesses proposed by the prosecution and approved by the court include Croatian Peasant Party leader Josip Friscic, the Social Democrat Mayor of Koprivnica, Zvonimir Mrsic, former government spokesman Ratko Macek, and the chairman of the Podravka Supervisory Board, Ljubo Jurcic.

The prosecution's list of witnesses also includes Privredna Banka Zagreb CEO Bozo Prka, Justice Minister Drazen Bosnjakovic, and former Privatisation Fund director Vedran Duvnjak.

The panel of judges in charge of the case will decide subsequently as to whether to question Prime Minister Jadranka Kosor, former PM Ivo Sanader, former President Stjepan Mesic, Deputy Parliament Speaker Ivan Jarnjak, Economy Minister Djuro Popijac, member of Parliament Boris Kunst, union leader Ozren Matijasevic, and Zagrebacka Banka CEO Franjo Lukovic.

Apart from Polancec, also accused in this case are former Podravka executives Zdravko Sestak, Darko Marinac, Josip Pavlovic, and Sasa Romac, the owner of the Fimi Grupa company, Mladen Horvat, the owner and director of the SMS company, Srdjan Mladinic, and Zagreb lawyer Zoran Markovic.

All the accused have rejected the prosecution's allegations that they conspired to acquire a majority stake in Podravka, claiming that Polancec and they were actually protecting Podravka against a hostile takeover.