After several days of silence, SDP responds to the latest scandal.
Former Agriculture Minister Tihomir Jakovina (SDP) gave a statement on Monday afternoon in front of the Agriculture Ministry about the payment of multi-million kuna bonuses to members of the Board of Directors of the Croatian Forests public company, which he approved during his term of office, reports N1 on July 25, 2016.
“In January 2012, a new three-member Board of Directors of the Croatian Forests was appointed and we signed a contract that was drastically different than the one with the previous, five-member Board of Directors – ten percent reduction of salaries, no life insurance paid by the company, and no huge severance payments. They had clear goals and guidelines – reorganization, restructuring and implementation of a model that would ensure that the wood processing sector is better positioned after Croatia joins the European Union. This goal was achieved. As far as business results are concerned, in the period from 2012 to 2015, the company had net profits of 383 million kuna, while previously it was 50 million kuna. That fact demonstrates the level of expertise of the Board of Directors”, said Jakovina, who did accept some responsibility for exorbitant bonuses.
“I accept criticism of bonuses which were set up as a possible reward for business results. In 2012, I could not have known that they would have such good results. I accept the criticism, but I cannot accept the allegations of HDZ secretary general Gordan Jandroković who was until 2012 a deputy prime minister in a government which paid many million kuna to management teams which had bad business results.”
MOST president and current Deputy Prime Minister Božo Petrov said that the bonuses were an embarrassment, especially since the company fired 1,100 workers. Jakovina commented on his statement, ironically calling Petrov an expert for negotiations with unions. “As an expert for negotiations with trade unions, he should know that we are not talking here about people being fired, but about people going to retirement or leaving for personal reasons which was all agreed with the unions. All studies showed that there were 3,000 more people employed in the company than it was necessary.”
Former Agriculture Minister once again defended the Board of Directors, but also attacked the current government. “Their business results demonstrate that they had responsibly managed the forests. Water resources, forests and agricultural land are national wealth and they must not be part of the privatization effort. The current government has announced a tender for consultants for privatization, and that is the key question”, said Jakovina and invited members of the Board to withdraw their request for the payment of bonuses.
