PRIVATIZATION FUND SCANDAL

SEPTEMBER 11 2007 21:35h

Two New Suspects in Maestro Corruption Case

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Office for Prevention of Corruption has asked for an investigation of a senior real estate advisor and a 56-year old Croatian citizen.

Today, the Office for Prevention of Corruption and Organized Crime (USKOK) requested the expansion of the investigation of the Maestro case to include two new suspects and two parties previously suspected of corruption at the Croatian Privatization Fund (HFP), USKOK said today on the official website. 

Along with HFP vice-president Robert Peso and head of real estate sales Igor Petlevski, USKOK suspects senior advisor D.M. at the HFP real estate sector of abuse of office.

USKOK suspects a 56-year-old Croatian citizen of inciting abuse of office and authority. They did not wish to reveal his identity, but Fund employees had reportedly earned the suspect at least a million kunas by allegedly conducting illegal activities.  

Three Fund employees ensured the 56-year-old man ongoing ownership and use of real estate without public tenders or knowledge of the HFP management board, even though they were aware of the fact that the suspect had owned state real estate managed by the Fund without a legal basis for two years.

In January, the HFP employees also ensured the suspect construction work on objects and allowed him to use them until an international agreement on resolving property-legal relations was signed with Serbia and Montenegro, i.e. until a lease agreement was signed after the public tenders. 

They authorized the use even though they did not have any intention of inviting tenders or signing a lease agreement. In this way, they legalized unlawful ownership to the suspect and made it possible for him to use the real estate for tourism and catering.