Gov't expects those responsible for Agrokor irregularities to be identified

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The government said on Monday it expected the emergency administrator at the ailing Agrokor conglomerate to take all the necessary steps under the law to establish responsibility, after audited financial statements for the Agrokor Group and the Agrokor joint stock company indicated accounting irregularities.

The financial statements for Agrokor for 2016 have revealed major accounting irregularities suggesting potential illegal actions. The government expects the emergency administrator to take all the necessary measures under the law to establish responsibility for the numerous irregularities established. The government expects relevant institutions to do their work conscientiously, responsibly and within an appropriate time frame.

The audited financial statements clearly show the depth and gravity of the problems created by Agrokor's owner, Ivica Todoric, which led the entire Agrokor Group to the brink of bankruptcy.

The financial statements for 2016, audited by the renowned international firm PricewaterhouseCoopers, additionally confirm the danger faced by the Croatian economy and show that the Law on Emergency Administration in Companies of Systemic Importance to Croatia has helped preserve the stability of the entire economy.

The Law prevented an uncontrolled bankruptcy of Agrokor and its effects on the Croatian economy as a whole. The Law and the emergency administration have preserved jobs, prevented a spillover of system risks to the entire economy and preserved the stability of the economic system as a whole, creating the conditions for continued economic growth.

The financial, operational and business restructuring was being carried out without spending taxpayers' money.

Agrokor and its creditors now need to work on a deal to settle the company's huge debt, and the results of the emergency administration in the last six months will make a positive contribution to it.

Text: Hina