Croatian economy minster resigns

03/11/2009

Amid corruption allegations and denials of wrongdoing, Economy Minister Damir Polancec calls it quits.

By Natasa Radic for Southeast European Times in Zagreb – 03/11/09

Damir Polancec. [File]

After weeks of strong criticism from the public and opponents in parliament, Damir Polancec, the Croatian deputy prime minister and minister of economy, resigned on Friday (October 30th).

"I am leaving because I do not want to harm the work of this government and the ruling coalition. I do not wish to imposition Prime Minister Jadranka Kosor to have to decide whether to have me on her team or not," Polancec told reporters.

The prime minister accepted his resignation.

Polancec faces strong public criticism over a scandal involving local food producer Podravka, where several company officials allegedly intended to buy company shares and take over the firm with its own money -- a scam that cost the country approximately 34.5m euros.

According to accusations, Polancec protected Podravka executives, a charge he denies. He said he will not use his immunity as a member of parliament if the corruption charges turn into a full-fledged criminal investigation.

Polancec, 42, worked at the food company prior to his 2005 government appointment.

As Podravka managers suspected of wrongdoing were detained, the public, media and opposition began to speculate that a high-ranking government official must have helped protect the alleged criminals since the transactions in question began back in 2006.

Almost immediately, all fingers pointed at Polancec.

However, he claims that the illegal transactions that led to the hostile takeover of the profitable company were safeguarded not by him, but by President Stipe Mesic.

"I thought that this man was a normal person," retaliated Mesic, adding that the now former deputy prime minister is obviously drowning and seeking a lifesaver to help him stay afloat.

For weeks, opposition in parliament called for the deputy prime minister to resign, as did smaller coalition partners. Polancec said he resigned two days before public confirmation, but "wanted to see what the public opinion about him is".

His professional future is uncertain at this point. Polancec announced he does not intend to return to politics.