Gredelj Threw 3.5 Million Dollars Into Wind

New HZ (Croatian Railways) affair was worth 3.5 million dollars and nobody knows where the money went.

New HZ (Croatian Railways) affair was worth 3.5 million dollars. Company TZV Gredelj paid the amount without requesting any guarantees and nobody knows where the money went.

Daughter company of of Croatian Railways, TZV Gredelj, signed a contract with American company Mart Corporation in 2007. The contract was mostly concerned with purchasing of spare parts, new railroad vehicle supply and order of automated maintenance machines for a total of 7.2 million dollars.

Requested vehicles were never delivered and money disappeared. American company closed down. Since Gradelj closely cooperates with HZ we tried to get comments from both companies, but our efforts were fruitless.

-I am not authorized to talk about it; TZV Gredelj has its own PR department – we were told by Vlatka Skoric, HZ’s corporate communication director, after we inquired about their newest affair.

According to Jutarnji List, half of the sum was paid out in advance, and in spite the fact that they were dealing with a foreign company, guarantee receipt was not requested. Both, order and monetary transaction, were approved by TZV Gredelj’s Board Director, Antun Fabek.

Even though TZV Gredelj managers had to know they made a mistake very soon, they kept the controversial contract a secret. Only in July of 2009 management tried to annulate the 2007 agreement.

Trust Based Payment

Police and state prosecutors are keeping a close eye on this case because of dobts that TZV Gredelj’s management might be involved with corruption. Questions regarding contract details were not answered.

-That was not a sales contract but a contract for supply; and I am sales director. I came to work about an hour and thirty minutes ago and there are three children around me so I am not able to talk right now – TZV Gredelj’s sales and marketing director Marin Pipunic said in phone conversation with javno.com.

Because of contract’s non-existent security clausal and ‘trust-based’ payment, retrieving of funds was impossible. During the conference of company’s general board controversial agreement did not go unnoticed. It was concluded that loss of 3.5 million was being purposefully obscured. It was reported that this investigation may have been triggered by media reports as well as the arrest of the former HZ Holding director, Davorin Kobak.

State prosecutors received analysis report from company’s general board and criminal investigation is expected to begin soon.