INA privatization inquiry

Polancec: Negotiations were defined by govt. and HDZ

14.09.2010 u 16:06

Bionic
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Former Prime Minister Damir Polancec told the parliamentary commission investigating the privatisation of the national oil company INA on Tuesday that he had conducted the entire process of negotiation to amend the shareholders' agreement with Hungary's MOL in consultation with members of the government and the presidency of the ruling Croatian Democratic Union (HDZ) party.

"It was also the modus operandi in some other cases, in which I am now the only person to be accused," Polancec said.

Polancec stressed that in negotiations with MOL he had always acted within the negotiating framework defined at meetings of the government and the HDZ presidency, which he added had been attended by all government ministers.

Describing one such meeting in detail, he said that it was attended, among others, by former Prime Minister Ivo Sanader, his deputy and current Prime Minister, Jadranka Kosor, Parliament Speaker Luka Bebic and his deputy Vladimir Seks, Finance Minister Ivan Suker, Transport Minister Bozidar Kalmeta, and senior HDZ official Andrija Hebrang.

"I remember that they were attending my presentation and they could discuss the negotiating process. Every time they gave me a clear framework to continue negotiations and I never went beyond it," Polancec said.

Polancec said that the final text of the amended agreement incorporated almost all the proposals put forward by government ministers, naming in particular Suker and Environment Minister Marina Matulovic Dropulic.

"This is a clear answer to the question of whether I was the only negotiator," Polancec told the inquiry commission, stressing that all the documents he had used in negotiations protected national interests and were aimed at INA's development.

Commenting on Suker's statement this morning that he had never attended a meeting of the commission charged with amending the INA shareholders' agreement, Polancec said that during his four and a half year term in government Suker had never attended a meeting of any government body for economic affairs that was presided over by Polancec. "That speaks of his attitude towards me," he added.

Polancec said that as part of the negotiations between the Croatian government and MOL he had met several times with former President Stjepan Mesic and the then chairman of the INA managing board, Tomislav Dragicevic.