Croatia says indicts MOL's CEO over INA bribes

by Reuters
Monday, 31 March 2014 19:35 GMT

ZAGREB, March 31 (Reuters) - Croatia's anti-graft police said on Monday they had indicted the chief executive of Hungarian energy group MOL for paying bribes in exchange for MOL getting dominance in Croatian oil and gas firm INA.

In a statement published on its website, police anti-graft unit USKOK gave just the initials of MOL boss Zsolt Hernadi, a common practice in Croatian police statements.

"The indictment accuses the head of MOL's management... of striking a deal for Croatia's (then) Prime Minister, Ivo Sanader, to do everything possible for the amount of 10 million euros to change the shareholders' agreement in INA," the statement said.

Sanader has already been jailed for 10 years in the case. He and MOL have previously denied the accusations and Sanader has appealed to the Croatian Supreme Court.

MOL spokespersons were not immediately available for comment on the USKOK statement.

MOL is the biggest INA shareholder with almost 50 percent, while the Croatian government holds close to 45 percent.

"The deal was aimed at securing undue dominance by MOL in INA," the statement said.

USKOK said that after the shareholders' agreement was changed, Hernadi organised a payment of 10 million euros to Sanader.

Relations between MOL and Zagreb have been strained for several years and they are now engaged in talks to redefine their partnership in INA. MOL said it was ready to sell its INA stake if no deal was reached. (Reporting by Igor Ilic; Editing by Toby Chopra)

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