May 1, 2020 – Beware the Croatian inspector – a new series courtesy of Glas Poduzetnika (Voice of Entrepreneurs), highlighting a Croatian business reality that helps kill growth, profit, and entrepreneurship. Contract With Myself.
I have seen them operating all over the country over the last 18 years, the most feared visitors to Croatia’s cafes, restaurants, and other businesses – the Croatian inspector.
As with many corrupt countries, the role of the inspector should be to make sure that the rules are being adhered to in the particular area they specialise in – sanitary, fiscal, etc – but in reality, the prime motivation is to find ways to fill the State coffers and their own. Allegedly.
I heard SO many stories of inspections where perfectly run businesses end up paying thousands in fines, some of it justified, much of it grossly unfair. And there is an old truism here:
If the Croatian inspector comes to visit, he will find something, even if there is nothing there.
It is a subject that I have wanted to cover for years, but I never had quite the right material. Until now.
Huge thanks to those very proactive chaps at Glas Poduzetnika, who are really becoming a force for change to be reckoned with. A really great initiative. In one of their latest moves, they have been collecting some of their members’ experiences with the Croatian inspector, to highlight the issue and the realities of doing business in Beautiful Croatia.
Story #6: Contract With Myself
In 2014 we had two directors in the company, and we had registered under the same OIB (PIN) the passenger transport and the tourist agency. My colleague had the certificate for the head of a travel agency, and I for the transport manager. Through the agency, we received an order for transport operations. I was doing the transport myself because the company had just started to work. I was stopped at Split airport by an inspector who was known to be corrupt, and against whom legal procedures had already been initiated several times. Still, each time it ended up with him being removed from the public for several months until things settled down, and then he continued his usual business. Articles in the media about his autocracy go back to the 90s. I had all the documents in order. After all, he asked me for an agreement that I had to sign with the Agency.
I do not have such an agreement, because we did not consider it necessary to draw up a contract that has the name of the Agency on both the left and right, under the contracting agency and performer. He issued a violation order of 30,000.00 kn because “it doesn’t matter that the contract is signed with oneself, the law says that there must be a contract.” (Once again, all other documentation was on point.) I started a discussion with him, which lasted for an hour, and he asks for the bribe. I’m not giving anything to him.
Moreover, I tell him, and I quote, “When you catch me in violation, I will pay whatever is necessary, but as long as I am legal, I will not give you anything but a kick in the a…” This was my cardinal mistake, which will be confirmed in the next few years. But even today, I don’t regret it, and I would do the same again. Summary from the court: the judge confirms that the situation is banal and that it is pointless to sign a contract with oneself, but gives for the right to the inspector, because, nevertheless, “it doesn’t matter that the contract is signed with oneself, the law says that there must be a contract.” The company got fined by a minor fine and myself, as the responsible person. The total fine was 9,000 kn with a 1/3 reduction if paid in the next 8 days. Unfortunately, I paid.
Beware the Croatian Inspector is a new daily series (yes, there really is that much material) which you can follow here.
If you have a Croatian inspector story you would like to share with the Glas Poduzetnika team (in English or Croatian), you can do so via [email protected] Subject TCN inspector.
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