Former CEO of the Djuro Djakovic rolling stock manufacturer, Velimir Kucinar on Tuesday testified in the trial against former PM Ivo Sanader and the Croatian Democratic Union (HDZ) in the Fimi Media scandal and said that he and his associates were asked to give a donation of one million kuna to the HDZ to cover dues owing to the company by the national electricity provider HEP.
Kucinar said that Djuro Djakovic had constructed a power plant for HEP worth about HRK 60 million. At the end of 2008 though an associate, Ljubo Busic, said he had learned from HEP that it was not enough to just to settle the debt but that a donation should be made to the HDZ.
Busic has in the meantime been sentenced to 10 months imprisonment in another case for bribing a HEP executive with HRK 600,000, a portion of which was intended again for the HDZ slush fund.
"We were facing huge problems because our daily losses were amounting to EUR 30,000 and so we decided to pay the donation", Kucinar said. He added that HRK 520,000 was handed over in 2009 to HEP executive Petar Cubelic who too was charged with receiving Busic's bribe.
Busic had later approached them for the remainder of the requested million kuna but this was never paid as "circumstances changed".
"The premier resigned, HEP CEO Ivan Mravak was dismissed and we considered we were no longer obliged", Kucinar testified.
Several other witnesses testified during the day in this corruption affair when monies were allegedly syphoned from state companies to a HDZ slush fund.
