ZAGREB, Sept 23, 2020 - Economy and Sustainable Development Minister Tomislav Coric said on Wednesday that the government would propose an interim CEO to the JANAF supervisory board at tomorrow's session, noting that this state-run oil pipeline operator should continue its successful business path.

"JANAF should continue doing business, it should continue its successful business path. JANAF ended 2018 and 2019 with good business results. ... The government, as the majority owner, will propose to the supervisory board that an interim CEO, an acting director, be appointed, and in the coming period that advertisement for JANAF CEO position for a period of four years will be published", Coric told reporters after the Big Plans Day conference.

Asked to comment on President Zoran Milanovic's claims that Prime Minister Andrej Plenkovic must have known about suspicions about JANAF CEO Dragan Kovacevic's corruption activities, which Prime Minister rejected yesterday, Minister Coric said that he had nothing to add as Prime Minister had been clear on the matter.

"It is on us to conduct the economic policy of our country and other policies, and it is on institutions that deal with investigations, proceedings and punishment in such situations to do their share of the work," Coric said.

Asked about public procurement and the fact that the Elektrocentar Petek company from Ivanic Grad did business with all state-run companies, local units, Economy Minister recalled the Public Procurement Act and the fact that the procurement contract is awarded to the company with the best price economy-wise, and that others can file a complaint to the State Commission for Supervision of Public Procurement Procedures (DKOM).

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ZAGREB, September 22, 2020 - Economy Minister Tomislav Coric said on Tuesday that the advertisement for the position of the CEO of state-run oil pipeline operator JANAF would be published as soon as possible, after the current executive Dragan Kovacevic was remanded in custody on corruption charges.

"Concerning the provisions of the JANAF statute, it is necessary to appoint an acting director until the appointment of the new one through a public competition," the minister explained.

He said that this would be done as soon as possible.

Asked by the press whether he had visited Dragan Kovacevic's club, Coric said that he had known Kovacevic since 2013.

Coric explained that he had "made his acquaintance first of all due to economic topics."

Coric, who had served as the energy minister in the previous cabinet, said that considering the fact that his department covered JANAF, he had met Kovacevic on several occasions and visited the club.

Media outlets have reported that "the club" in downtown Zagreb refers to private premises owned by Kovacevic's private company and used by state officials and business people to socialise.

Coric said that he had met Kovacevic a few weeks ago.

The scandal involving Kovacevic, as well as the owner of the private Elektrocentar company, two mayors and a few more suspects broke out last week. Twelve of the 13 suspects in this influence peddling and public tender probe have been placed in custody.

Kovacevic is suspected of having received kickbacks from the main suspect, the owner of Elektrocentar, Kreso Petek.

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ZAGREB, September 19, 2020 - President Zoran Milanovic said on Saturday, in a comment on the JANAF corruption scandal, that he did not understand why JANAF CEO Dragan Kovacevic and businessman Kreso Petek were not arrested at the moment when Kovacevic received a bribe of HRK 1.96 million from Petek. 

"I don't understand why this did not stop at the moment when it was found out through surveillance that someone was giving someone two million kuna in bribes. That should have been the end of the story, you have a case, you have physical evidence. That's what I would like to know," Milanovic said when asked about the investigation into the case in which public tenders were allegedly rigged to favour Petek's company.

Petek is charged with having bribed Kovacevic in November 2019 with HRK 1.96 million to win several jobs for his company. At the moment when the money was handed over, police rather closely recorded the circumstances in which Petek took the money to Kovacevic.

Kovacevic was Milanovic's rival in a 2008 election for the president of the Social Democratic Party (SDP), after which he joined the Croatian People's Party (HNS), and Milanovic confirmed today that the two of them had a lunch together a few months ago.

"We are not close friends, but we have been on good terms," said the president.

Considering that Kovacevic was appointed to head JANAF during his government's term, Milanovic said that Kovacevic was appointed JANAF CEO in 2012 by Radimir Cacic.

The president also commented on Standard & Poor's having affirmed Croatia's investment grade, saying that what the agency said was good but that agency ratings were a matter of the past.

"At a time when money is practically free, their forecasts do not mean anything. More important is what we know and the data we have, and next year should be a year of recovery and growth provided the situation with the coronavirus calms down," said Milanovic, who attended an event marking the 75th anniversary of the liberation of the northwestern Croatia in World War II.

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ZAGREB, Sept 19, 2020 - An investigating judge of Zagreb County Court on Friday evening imposed 30-day pre-trial detention on 10 suspects in the influence-peddling probe which also implicates the Janaf oil pipeline operator's CEO, Dragan Kovacevic, the Elektrocentar company's founder Kreso Petek and two mayors.

There are 13 suspects covered by the investigation so far.

The decision on remanding in the mayors, Drazen Barisic of Velika Gorica, and Vinko Grgic of Nova Gradiska are expected to be made on Saturday.

The 10 suspects have been taken into investigative custody for fear of tampering with witnesses.

The Office for the Suppression of Corruption and Organised Crime (USKOK) on Thursday evening launched an investigation into the CEO of oil pipeline operator Janaf and another twelve people on suspicion of influence peddling, bribery, illicit preferential treatment, and aiding and abetting in these crimes.

The main suspect Petek allegedly gave Kovacevic HRK 1.96 million in reward for business deals awarded to his company by JANAF since September 2019.

He is also suspected of giving HRK 100,000 to the mayor of Nova Gradiska, in reward for helping award a deal in a public tender to a consortium that included Petek's company.

The mayor of Velika Gorica allegedly ensured the award of an HRK 97.3 million public procurement deal to Petek's company. Using his mayoral position, he asked the chairman of the board of the local water management company to modify public tender documentation to suit the demands of Petek and his consultant.

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ZAGREB, Sept 17, 2020 - The national anti-corruption body USKOK on Thursday confirmed the arrest of Dragan Kovacevic, the CEO of oil pipeline operator Janaf, saying that several people were being arrested on suspicion of influence peddling, bribery and illicit preferential treatment.

In a statement in which the suspects were not identified, USKOK said it had asked Parliament to strip two MPs of immunity from prosecution.

The MPs in question are Velika Gorica mayor Drazen Barisic (HDZ) and Nova Gradiska mayor Vinko Grgic (SDP), and both have told the media they have nothing to do with corruption. The motion to lift immunity will be discussed by the Credentials and Privileges Commission in the afternoon.

USKOK said it would decide on further steps after the suspects were questioned.

According to media reports, Kovacevic is suspected of receiving HRK 1.9 million in bribes from the CEO of a company which landed an HRK 40 million deal from Janaf.

According to unofficial information, ten people have been arrested.

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ZAGREB, Sept 17, 2020 - The attorney of JANAF oil pipeline director Dragan Kovacevic, Ivo Farcic, confirmed on Thursday that his client was arrested on suspicion of influence peddling.

"I can't say how many deals we are talking about," he told the press outside JANAF, where a search of the premises was completed in the early afternoon, adding that the state prosecutor would probably issue a press release soon.

Farcic said many other premises were expected to be searched, most likely today, and that his client must be present at all searches. He added that Kovacevic did not comment on the suspicions and that at this stage of the proceedings he was not obliged to do so.

Farcic said Kovacevic was likely to be interviewed at the USKOK anti-corruption office on Friday.

The media have reported that he is suspected of taking an HRK 1.9 million bribes from the head of a company which landed an HRK 40 million deal from JANAF.

Searches are underway in several citizens and ten persons have apparently been arrested, while another two are expected to be if stripped of parliamentary immunity from prosecution, on which the parliamentary Credentials and Privileges Commission is deciding at 5 p.m.

The two are Velika Gorica Mayor Drazen Barisic of the ruling HDZ and Nova Gradiska Mayor Vinko Grgic of the opposition SDP. Both are MPs and told the press today they had nothing to do with corruption.

USKOK and the police are expected to issue press releases on today's arrests later today.

(€1 = HRK 7.5)

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ZAGREB, Sept 17, 2020 - Prime Minister Andrej Plenkovic on Thursday commented today's arrests and preliminary investigations in the JANAF oil pipeline operator, supporting the authorities in all their actions and saying that everyone found guilty would answer for their crimes.

Speaking at a cabinet meeting, he said this was "yet another very clear message (that) the task of all bodies, notably judicial bodies, DORH, USKOK, PNUSKOK and the police, is to do an impartial and independent job and thoroughly investigate and prosecute everyone suspected of taking part in corruption activities."

"This message of the fight against corruption is constant and continuous," Plenkovic said, adding that his government was proving that it advocated fighting corruption through "concrete action."

He supported the State Prosecutor's Office (DORH), the USKOK anti-corruption office and the PNUSKOK police anti-corruption office "in all activities which are independent and free of any influence or pressure on their work.

"Everyone found guilty... will answer for a certain act," Plenkovic said, adding that he would say more about this morning's police operation after learning more about it.

"We have a principled position, very firm and clear, we stand behind it and that's will be our policy."

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ZAGREB, Sept 17, 2020 - The state-run oil operator Janaf on Thursday confirmed that the Police Office for the Suppression of Corruption and Organised Crime (PNUSKOK) was searching the company's offices.

A brief statement, issued on Thursday morning after some media outlets broke the news that JANAF board chairman Dragan Kovacevic was arrested by the police on suspicion of financial irregularities, only read that the police and PNUSKOK officers were currently conducting investigations into the offices of the company and that the oil operator did its business as usual.

Several media outlets reported this morning that the police had launched a probe into mayors Drazen Barisic of Velika Gorica and Vinko Grgic of Nova Gradiska and the JANAF oil operator's director Kovacevic on suspicion of involvement in murky dealings.

According to unofficial reports, one of the subjects of the investigation is an HRK 700 million projects of a new sewerage system and water purification plant in Velika Gorica.

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ZAGREB, May 26, 2020 - The INA oil company and the JANAF oil pipeline operator on Tuesday commented on an article in Nacional weekly which claims it obtained a secret memorandum between the two companies whereby the prime minister allows the export of Croatian oil to Hungary and that the document undermines national interests.

The INA-JANAF memorandum of understanding is a non-binding document signed on 21 August 2018 with the goal of creating prerequisites for the adoption of business decisions which ensure greater profitability and the viability of INA's refining and thereby the whole company, INA said in a press release in response to the Nacional article.

JANAF responded too, saying in a press release that its management was planning and undertaking business activities aimed at increasing the company's revenue and profit as well as reducing and consolidating expenses.

INA explained the memorandum also in the context of its INA R&M New Direction 2023 program, which was launched in 2018 and which envisages concentrating oil processing in the Rijeka refinery and transforming the Sisak location into an industrial hub.

INA said the memorandum envisaged a better optimization of oil transport between JANAF's Sisak terminal and INA's Sisak refinery to enable selling oil at market prices and generating greater economic value. Oil from Croatian fields is processed at the Rijeka refinery and part of it is sold at market prices, INA said, adding that the Rijeka refinery processed more effectively 20% more oil than before and that the quantities covered Croatia's requirements. 

ZAGREB, April 2, 2019 - Janaf on Tuesday put into operation three new crude oil tanks in Omišalj on the island of Krk, and this national operator of the oil pipeline and storage system invested nearly 280 million kuna (38 million euro) in this project that enables the storing of 240,000 cubic metres of crude oil on that Adriatic island.

The new tanks increase the capacity of the Omišalj terminal where there are now 20 tanks for the storage of 1.4 million cubic metres of crude oil, while storage capacity for petroleum products is 80,000 cubic metres.

The inauguration of the three tanks completes the process of upgrading the Omišalj facility.

Apart from this terminal, Janaf operates terminals in Sisak, Virje, Slavonski Brod and Zagreb, with the aggregate storage capacity being 1.94 million cubic metres of crude oil and 220,000 cubic metres of petroleum products.

The Zagreb-headquartered company also operates 631 kilometres of oil pipelines throughout Croatia.

Addressing the inauguration ceremony, State Assets Minister Goran Marić said that Janaf, in which the state holds a majority stake, sets the model for other state-owned companies.

Janaf Board chair Dragan Kovačević boasted that the Omišalj terminal was among the top three terminals of this kind in the world.

The company registered a 4.5% rise in both gross and net profits in 2018, with gross profit totalling 370.6 million kuna and net profit 303.7 million kuna.

Total revenue was 781.8 million kuna, which was similar to 2017, whereas total expenditure was cut by 3.5% to 411.2 million kuna.

Last year, Janaf set aside 457.4 million kuna for investment.

More news about Janaf can be found in the Business section.