Hypo affair

Sanader again refutes receiving kickbacks

16.12.2011 u 14:44

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Former prime minister Ivo Sanader on Friday before the Zagreb County Court rejected the claims by former manager of Austria's Hypo Bank Franz Hasslinger that he had received any kickbacks from the bank after Croatia was granted a loan for the purchase of buildings for diplomatic missions.

"I would like to object to the truthfulness of this witness's testimony that I have received or asked for commissions," Sanader said at the end of today's hearing in the Hypo Bank case in which he is charged with war profiteering and with receiving 3.6 million kuna in kickbacks from Hypo Bank in the mid-1990s to facilitate a loan to Croatia for the purchase of buildings for diplomatic missions.

Hasslinger said in court today that he had heard from the Austrian bank's former CEO, Wolfgang Kulterer that in 1995 Sanader, the then deputy foreign minister, took a commission from the bank after Croatia was granted a loan for the purchase of buildings for diplomatic missions.

The witness said Sanader received kickbacks for the market development in Croatia, but also as a condition for signing the agreement on the loan with which Croatia, at the time when it was hard for the country to get money on foreign markets, wanted to purchase buildings for diplomatic missions abroad.

Although he previously stated that the the largest part of the commission was calculated in the loan and eventually paid by the loan user, he later changed his testimony and said that the bank had to cover the largest share of the commission.

The witness said that most probably three fifths of the amount of the commission were covered by the bank and two fifths by the client, namely Croatia. Hasslinger said that a commission was usually being entirely calculated in the loan and eventually paid by the loan user but in that case the bank had to cover a share as well because of an unusually high commission asked by Sanader.

He added that Sanader had allegedly asked for a commission amounting to 8 percent of the loan, which is above the terms of business so the supervisory board asked Kulterer to negotiate the final amount of the commission.

Although he was not informed of the results of the negotiations, the witness said he had learnt from a document, signed by former executive of Austrian Hypo Bank in charge of operations with Croatia Gunther Striedinger, that the commission amounted to five percent which, according to him, was also "the upper limit."

The witness said he had never heard of a person called Eugen Laxa, who was mentioned on several occasions during the trial.

Former Hypo bank executive Kurt Makula, whose signature was on four slips confirming the payment of commissions Sanader is accused of receiving, was also expected to take the witness stand today, but did not show up in court excusing himself with private reasons, in writing. He also suggested to court that he might be examined via video link. Former Hypo Bank CEO Kulterer requests the same thing.

The trial will resume on 11 January. This is most probably the last hearing for Sanader to arrive from the prison, as he is expected to leave Remetinec after courts register the replacement of his detention with a HRK 12.4 million bail.