Another development in the trial of Zulte Hernadi
Here are the latest developments in the bribery case
Croatian public television HRT reported yesterday that, nine months after the Croatian Constitutional Court rejected former Croatian Prime Minister Ivo Sanader’s constitutional claim in the long-running Mol-INA case, The commission also rejected the complaint of Zsolt Hernádi, the president and CEO of Mol, who was convicted in the same trial.He writes world economy. The Mall Group stated in its statement to MTI that
Croatia once again ignored three rulings by an independent international tribunal, stating that the proceedings against Zulte Hernadi were unfounded.
Last October, for example, the Swiss Supreme Court rejected Croatia’s request to overturn the Geneva Commission on International Trade Law’s decision in the Ivo Sanader corruption case and its unfavorable decision on Zagreb. In December 2021, the Croatian government overturned the verdict and confirmed the first instance conviction of the Zagreb District Court in the joint trial of Ivo Sanader and Zsolte Hernadi, for believing that based on the Croatian Supreme Court’s ruling corruption was established. The agreements between Mol and the Croatian state regarding the INA could not last, Therefore, Mol’s acquisition efforts will also be put on hold. According to the logic of the board of directors, corruption occurred when Ivo Sanader agreed with Zsolt Hernádi that the Hungarian company would acquire management rights for the Croatian oil company INA for 10 million euros and that the unprofitable gas sector would be withdrawn from INA.
After the verdict, it was Ivo Sanader and Zulte Hernadi
Because of the grave injustice he was subjected to during the proceedings
Appeal to the Croatian Constitutional Court for legal redress, so this complaint has now been dismissed by the Constitutional Court.
In a statement sent to MTI, the Mol group wrote: With the decision of the Croatian Constitutional Court, in which it dismissed the complaint of its president and CEO, They came to another chapter in a series of procedures that are difficult to explain in legal terms. According to their point of view, with this move, Croatia once again ignored the judgment of three independent international courts, which unanimously declared that there was no corruption during the acquisition of Mol’s property in INA.
The Croatian government turned to international arbitration at the beginning of 2014, according to the Croatian position
MOL gained control of INA due to corruption,
In addition, Mol’s investments in Croatian oil refineries did not take place as agreed in the shareholder agreement, and the Hungarian investor violated Croatian laws on commercial companies.
Moll has always denied the accusations. The Geneva arbitral tribunal rejected all of Croatia’s claims of bribery, corporate governance, and alleged breach of the 2003 Shareholders’ Agreement. Following the arbitral award, Croatian Prime Minister Andrej Plenković finally announced in an extraordinary press conference on December 24, 2016 that The Croatian state buys Mol’s share from INA.
In 2003, during the privatization of INA, Mol acquired a 25% stake plus one stake in the Croatian Oil Company. In 2009, Mol entered into an agreement with the Croatian government under which Mol acquired control rights to INA and took over the Croatian company’s gas business. Molly currently owns 49.08 percent of INA, and the Hungarian oil company also has management rights in the company.. 44.84 percent of the company is owned by the Croatian state.
Tensions between Croatia and Mol intensified when the Croatian subsidiary of the Hungarian company was exposed grave violations It happened. The Croatian Prosecutor’s Office for Combating Corruption and Organized Crime (USKOK), in a joint operation with the police, arrested five people last August for violations related to gas trade, including Damir Skogór, director of the natural gas trade branch of the INA. According to the charges, a little more than 1 billion kuna, that is, at the current exchange rate The Croatian company was damaged by about 53 billion HUF. Because of the violations, one of the senior directors of the INI was dismissed at the beginning of September, the head of which was Damir Skogour, and the chairman of the INI board, Sindor Vasimon, also submitted his resignation.
Cover photo: Portfolio