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Home » Politics, Zagreb

Zagreb, goverment replaces board of Directors at HEP

Zagreb - Trg Bana JelacicaAfter numerous scandals that have appeared in the public the recent months, the Croatian government has decided to dismiss HEP CEO Ivan Mravak and all other members of the directors board. 

The government has proposed that that the new chairman will be Leo Begovic, Secretary of State for Energy in Ministry of Economy and former chairman of the Supervisory Board of HEP. It is interesting to note, that in the place of ex-CEO they appointed a man whom in recent years was in charge of monitoring Ivan Mravak works. Minister Kalmeta said that this is not controversial? 

Some of the HEP scandals which ended up in the newspapers: 

  • Croatian Electric for two years rent of four apartments in Zagreb paid almost 700 thousand, for one of the flats in Zagreb Savici they paid 5416 kuna per month, although such a dwelling can be rented for half the price
  • For contracts that are free on the Internet, HEP paid to Tipuric (Dean of Faculty of Economics in Zagreb), 50,000 Euros.
  • Mravak signed faulty deal to save HAC (full article on English can be found here

This story regarding Mravak started in April 2009 when he gave an interview to the journalist of Jutarnji list, where he among other stated that he had no intention to resign, not even after the following information was published in the newspaper. 

HEP was in 2008 buying electricity for 83 EUR per MWh and selling price it, to the company Aluminij Mostar for a price of 20 EUR per MWh, the damage from this single deal was 50 million Euros. In the same time they raised the electricity prices in Croatia, as there is always someone who needs to pay for mistakes of managers. According to Croatia television police are investigation wasteful contract which could sum up to a billion Euro. 

The CEO of HEP Mravak was a registered citizen of the Vukovar County, which is a war-affected areas in Croatia with less income tax, he although lived in Zagreb for 20 years. 

Finally, after this long saga in the newspapers the Government headed by Jadranka Kosor yesterday decided to dismissal the board of directors  … and set up new capable board??

The answer to this question we have to wait for….

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