Though it was believed that the Office for Breaking Corruption and Organized Crime (USKOK) has only two witnesses who claim that Nevenka Tudjman illegally mediated and set up deals for Igor Knežević in installing communications networks, the indictment compiled by USKOK tells quite another story.

Nacional has come into possession of the USKOK indictment against Nevenka Tudjman and her business partner Igor Knežević: on more than 20 pages, the indictment accuses the daughter of the first Croatian President of four criminal acts of illegal mediation, based on the testimonies of those witnesses who have confirmed the claims made in Knežević’s incriminating statementLong list of Witnesses

Nacional has read through the indictment in detail, which announced the witnesses in the case: Ivica Kostović, former Science Minister; Nikola Ružinski, Kostović’s deputy at the time; Ante Đerek, former member of the ‘PBZ Investholding’ board; Martin Katičić, former director of Privredna Bank Zagreb (PBZ); Ivan Pavličević, chairman of the ‘PBZ Investholding’ board; Marica Karuza, assistant director of Robni Terminal; Rino Jurić, director of Robni Terminal; Eugen Stanković, who worked in Knežević’s company and the leading people in Ericsson Nikola Tesla. All these individuals are to testify to how the work done by Knežević’s company was set up, with the intervention of Nevenka Tudjman, who set up the deals and persuade the decision makers how to set up the tender and who to select. At times, the selection process was also made without an invitation to tender.

On over twenty pages of text, the USKOK indictment brings a detailed chronology of the many years of mediation by Nevenka Tudjman and her business of setting up deals for Knežević, for which she received a 15% commission in return, usually paid in cash at her office in Zagreb or at the Tudjman family home. USKOK has also found two invoices (no. 96901 and 96902) from the company ‘TNT Plus’, owned by Nevenka Tudjman, sent to Knežević’s company ‘Telecom’ for ‘mediation services’. The only testimony more significant than these two invoices are those witness that are to testify that Nevenka Tudjman directly connected them and asked them to give the job to Knežević and his company. Those reluctant to fess up have mostly shifted the blame to other individuals in their companies or institutions, trying in that way to save themselves, however, their statements confirm that Nevenka Tudjman set up many public tenders over a four year period, primarily in state corporations and institutions.

Campaign against her father

In the investigation, Igor Knežević stated that Nevenka Tudjman mediated with Ivica Kostović, who in turn assigned Nikola Ružinski to make the deal happen. According to Knežević, she mediated in the deals with Rino Jurić and Vjekoslav Srb, as she did in the job with Privredna Bank Zagreb. In spite of the fact that Knežević confessed fully, and described in detail just how the job with the Science Ministry was set up, outlining every payment made to him by Tudjman, she denied everything, saying that this was all part of a campaign to “blemish the name and character of her late father, the first Croatian president”. While she claimed to only be acquainted with Knežević, she forgot that a list exists of all their telephone calls exists, which were quite frequent during their years of cooperation. Based on this, it can be concluded that this is a tight business connection, and not just a mere acquaintance.

The investigative procedure, according to the USKOK indictment, “unquestionably indicates that the suspects committed the described criminal acts and are responsible for the same”. It is now obvious that none of the remaining participants in this drama stand accused, for the statute of limitations has already come into effect for those acts committed. However, they will all be invited to the courtroom as witnesses, to tell what they know. Even though their statements made during the investigation are more than enough.

Eugen Stanković, who was employed in Knežević’s company as a driver, testified that Knežević would withdraw money from Privredna Bank, exchange it into German marks and take it over to Tudjman, sometimes to her office, other times to her home. Knežević never hid the fact that he was paying her commission earned in the deals she set up for him. Kristina Brdar, secretary at Knežević’s companies, first at ‘Datanet’ and then at ‘Telecom’ said that Knežević and Tudjman frequently spoke by telephone. Though she had never met Tudjman, Brdar said she frequently spoke with her as Tudjman would call the company, present herself and ask for Knežević. Like Stanković, Brdar was often responsible for counting the money placed in the envelopes, usually just before Knežević’s meetings with Tudjman.

The testimony of Josip Paštrović, director of sales at Ericsson Nikola Tesla, is also interesting. He stated that he met Knežević a few years ago and that Knežević was known as a man who could close important deals, which Knežević personally told him when the two men first met. Paštrović stated that he did not believe him, thinking that he was simply bragging, but later he learned those claims held true. Knežević told Paštrović and his superiors that he was the person who would hand out the jobs among the competitors, which it turned out, he truly did. Ericsson Nikola Tesla participated in several tenders, and Paštrović quickly saw that Knežević was definitely in charge and directed those members of the panel as to who should be selected for the job. In the end, the offer accepted was the one Knežević has supported. “Knežević frequently bragged about his connections in high places and in that context, he frequently mentioned Nevenka Tudjman. On several occasions in my office, he called someone named Nevenka on his mobile, and stated that he was speaking with Nevenka Tudjman. I didn’t believe him,” stated Paštrović, but time soon proved that he should have.

Place in the spotlight

Nevenka Tudjman used her social influence, which we believe to be thoroughly proven – the indictment states. That is, “the criminal activities began in 1996, directly following the war activities in Croatia. At that time the role of President Franjo Tudjman was dominant in true influence and power, and by the authorities granted to him by the Constitution. In the minds of the citizens, President Tudjman had an impressive role, and in all his public appearances, he presented himself as a family man and was frequently accompanied by his family, in which first accused Nevenka Tudjman stood out. She frequently accompanied her father not only in private, but also in official events, such as the opening of various institutions, celebration of various anniversaries and the like. She was always in the media eye, in both the press and electronic media, and many members of the public were given the impression that the Tudjman family members were individuals of social influence. As such, it is certain that those who she sought mediation services from were flattered by the fact that they could be of service to her, also thinking that in this way they could collect political points.”

Based on the results of the many months of investigation, USKOK outlines in the indictment that Nevenka Tudjman, “used the circumstance that she was the daughter of the then, first President of the Republic of Croatia,” influenced Kostović, through his then deputy Ružinski, to appoint Knežević as the main person in the Science Ministry in charge of issuing tenders, selection contractors and overseeing the execution of installing telephone central networks, and that she had set a 15% commission rate with Knežević for her role. Knežević regularly paid her commission for the jobs that his company (which was regularly selected as the best offer) received, at the Faculty of Economics in Rijeka, Faculty of Agronomy in Zagreb, Faculty of Fine Arts in Zagreb, Faculty of Food Technology in Osijek, Faculty of Transport in Zagreb, the Croatian Veterinary Institute, Dubrovnik College, Teacher’s School in Čakovec, the Institute for Agriculture and Tourism in Poreč and ten other institutions.

“Using the circumstance that she was the daughter of the then, first President of the Republic of Croatia,” Tudjman also arranged that Katičić, through Đerek, ordered a telephone switchboard system from ‘Telecom’, and then director of ‘PBZ Investholding’ Pavličević, signed the contract with Knežević on Đerek’s initiative. ‘Telecom’ also built in telecom systems at Hotel Pinus in Jelsa, in the Center for Rehabilitation, Recreation and Tourism in Topusko, and the Hotel Complex Primošten. In “using the circumstance that she was the daughter of the then, first President of the Republic of Croatia,” Tudjman arranged for Jurić, then director of Robni Terminal Zagreb to sign a contract with Knežević. Jurić was also member of the commission responsible for selecting the contractors, and even though Ericsson, Siemens and other reputable companies submitted more reasonable bids, Knežević’s company was selected. Robni Terminal is owned by the City of Zagreb.

Also, in “using the circumstance that she was the daughter of the then, first President of the Republic of Croatia,” Tudjman arranged for Vjekoslav Srb, then president of the Končar-Elektroholding board, together with then member of the board, Ante Pandžić, to approve the installation of a telephone switchboard system in the company Končar-Imobilija, such that the decision made on recapitalization of Končar-Imobilia totaled 1.65 million kuna. The decision on the recapitalization was signed by Srb, while Rudolf Radinov, then director of the company, signed the deal with Alcatel Business Systems Croatia to buy the equipment and cover the installation. The total amount of this contract was 1,498,344.90 kuna, with Knežević’s company receiving 393,473.90 kuna for mediation services, of which 200,000 kuna was paid to Nevenka Tudjman. Meanwhile, despite the recapitalization, the company Končar-Imobilija went bankrupt.

While Igor Knežević is accused of abusing his official position, as the person responsible in the Science Ministry, as well as for tax evasion. Nevenka Tudjman is accused of committing four illegal acts. In his statement, Knežević stated that he paid Nevenka Tudjman 2.6 million kuna for her mediation services, while USKOK has found evidence supporting 2.2 million kuna in payment. Considering that the investigation is ongoing, corrections to this figure are still possible.

Shifting the blame

It is obvious that all those summoned witnessed fear for their futures, and in their statements, they made every attempt to shift the blame from one to the other. This tactic is so transparent that it would be obvious even to those with much less experience than the USKOK officials. After all these statements and the vast corroborating evidence, Tudjman and her defense attorney will have to find much better arguments than her current claim, that these accusations are no more than a campaign to “blemish the name and character of her late father, the first Croatian President”.

Work for the Science Ministry

The statement made by Igor Knežević on Tudjman’s involvement in setting up jobs and taking a commission also incriminates Ivica Kostović, former Science Minister. After a phone call from Tudjman, he delegated his assistant Nikola Ružinski to make their agreement happen. Nikola Ružinski, former Deputy Minister of Science, claimed during the investigation that he does not know Nevenka Tudjman and that he received Knežević in the Ministry based on a recommendation from then Minister Kostović. Kostović claims that he does not know Knežević, as well as not knowing anything about the telephone system installations. He claims that he recommended Knežević to no one, that he never spoke with him nor did Nevenka Tudjman contact him and ask him for a favor. Kostović stated that Ružinski’s claims are “not true”.

Work for PBZ Investholding

Ante Đerek, former member of the ‘PBZ Investholding’ board, claims that he contacted PBZ director Martin Katinčić and asked him to meet with Knežević. Katinčić did so and then sent him to meet with Ivan Pavličević, chairman of the ‘PBZ Investholding’, after which Knežević’s company was hired. Katinčić claims that he does not know Knežević, while he spent New Year’s celebration with Nevenka Tudjman and her family, but that she never at any time mediated in this deal. When faced with Đerek’s statement, it states that he commented that he doesn’t “know what the motives are for Ante Đerek to make such a claim”. Ivan Pavličević stated that he received Knežević on Đerek’s intervention, who had told him to “talk to him because he has good connections with Nevenka Tudjman”.

Work for Robni Terminal

Marica Karuza, assistant director of Robni Terminal for legal issues and human resource management said that the offer from Knežević’s company ‘Telecom’ was accepted by Ivan Pavlić, member of the selection panel, and that Director Rino Jurić had no objections. Though nine contractors bid on the job, there is only documentation from four bids in the company, the missing ones are from ‘Telecom-Uprave’, ‘Retel’, ‘Siemens’ and ‘Telecom’, the company that was accepted. The bids went missing from the archives after the newspapers published stories on the commissions but before the police made it to the company. Jurić stated in the investigation that he does not Knežević, nor were his mediation services in getting him close to the Tudjman family necessary, as he has known the Tudjman family since 1990. He denied that Nevenka Tudjman contacted him. He stated that Pavlić was responsible for the installation of the telephone system. Pavlić though claims that ‘Telecom’ was selected at Jurić’s proposal.