Croatian privatization controversy

Franjo Tuđman, president of Croatia during the privatization process.

The Croatian privatization controversy is a common name used to describe matters associated with the criminal activity which plunged the Republic of Croatia into an economic depression immediately after its creation.

Events

After the collapse of SFR Yugoslavia President Tuđman of the Croatian Democratic Union (Croatian: Hrvatska Demokratska Zajednica, HDZ) initiated the process of privatization and de-nationalization in Croatia, however, this was far from transparent and fully legal. The fact that the new government's legal system was inneficient and slow, as well as the wider context of the Yugoslav wars caused numerous incidents known collectively in Croatia as the "Privatization robbery" (privatizacijska pljačka). Nepotism was endemic, with the President deciding on a concept of "200 families" that would control all property in Croatia,^[1] and during this period many influential individuals with the backing of the authorities acquired state-owned property and companies at extremely low prices, afterwards selling them off piecemeal to the highest bidder for much larger sums. This proved very lucrative for the new owners, but in the vast majority of cases this (along with the separation from the previously secured Yugoslav markets) also caused the bankruptcy of the (previously successful) firm, causing the unemployment of thousands of citizens, a problem Croatia still struggles with to this day.

It is also beyond doubt that not few shadowy figures who moved close to Tuđman, the centre of power in Croatian society, profited from this enormously, having amassed wealth with suspicious celerity. Although this phenomenon is common to chaotic reforms in most post-communist societies (the best example being Russia with her "oligarchs"), the majority of Croats are of the opinion that Tuđman could and should have prevented at least a part of these malfeasances because nothing similar has happened to Slovenia with who Croatia has been inside Yugoslavia. The most common allegations sprouting from this state that he probably personally profited from this.
The charge of nepotism and favoritism (elitism), frequently leveled at Tuđman himself, has been resolved in 2007 when his daughter, Nevenka Tuđman, was found guilty of corruption, but set free because too many years has passed from time of the crime.^[2][3][4][5]. There are also other instances of apparent family nepotism. His son Miroslav Tuđman occupied the position of Chief of the HIS, the Croatian secret service, during the time of his father's presidency ^[6] and in second half of the 1990s (Franjo Tuđman's second tenure), his grandchild, Dejan Košutić, became the owner of the Kaptol bank ^[7] and had emigrated from Croatia to Serbia after his grandfather's death. He has returned only in 2005 when he is opening information security consulting company Kvadra savjetovanje d.o.o. [1]. Franjo Tuđman is often accused of having acquired his personal property by dishonest means ^[8].

See also

• Franjo Tuđman
• History of Croatia
• Croatian War of Independence
• Economy of Croatia
• Miroslav Kutle

References

1. ^ Berislav Jelinić (2009-08-03). "Ivić Pašalić tajni ortak Hypo banke" (in Croatian). Nacional. http://www.nacional.hr/clanak/63969/ivic-pasalic-tajni-ortak-hypo-banke. Retrieved 2010-11-29. "Polovinom 90-ih Tuđman je odobrio projekt Ivića Pašalića baziran na Tuđmanovoj ideji o 200 obitelji koje bi vladale hrvatskom imovinom" 
2. ^ "Charges Raised Against Nevenka Tudman". vijesti. EVENING NEWS 13.10.2002. http://vijesti.hrt.hr/arhiv/2002/10/14/ENG.html. Retrieved 2007-09-26. 
3. ^ "Late President's Daughter Charged with Crime". abanet. oct2002. http://www.abanet.org/ceeli/countries/croatia/oct2002.html. Retrieved 2007-09-26. ^{[dead link]}
4. ^ "SUD Nevenka Tuđman i drugi put oslobođena" (in Croatian). vijesti. 08.02.2007 14:30. Archived from the original on 2007-11-13. http://web.archive.org/web/20071113113859/http://www.vecernji.hr/newsroom/blackchronicle/736058/index.do. Retrieved 2007-09-26. 
5. ^ Martina Zeković (08.02.2007. 14:01). "Nevenka Tuđman oslobođena optužbi" (in Croatian). nacional. http://www.nacional.hr/articles/view/31361/. Retrieved 2007-09-26. 
6. ^ "blaskic Foot Notes" (in French). pub. 2007. Archived from the original on 2008-03-03. http://web.archive.org/web/20080303070245/http://www.un.org/icty/blaskic/appeal/jugement/foot.htm. Retrieved 2007-09-26. "701 - Rapport des services croates de renseignement (« HIS ») daté du 21 mars 1994, signé par le directeur du HIS, Miroslav Tudman, et adressé à Franjo Tudman." 
7. ^ "Vjesnik Newspaper - Politika section" (in Croatian) (PDF). Vjesnik. Petak, 9 ozujka 2001. http://www.vjesnik.hr/pdf/2001%5C03%5C09%5C02A2.PDF. Retrieved 2007-09-26. 
8. ^ Ivica Djikic (AIM Zagreb) (2001-11-29). "CORRUPTION, CROATIA'S TRAGEDY". aimpress. http://www.aimpress.ch/dyn/dos/archive/data/2001/11029-dose-01-03.htm. Retrieved 2007-09-26.