Croatia Charges Hungary's MOL CEO, Company Says Case is Political

  By Veronika Gulyas 
 

Croatia's anti-corruption and counter-organized crime office Uskok filed criminal charges against the chief executive of Hungary's oil company MOL Nyrt (MOL.BU)., a Croatian court spokesman said Tuesday.

The company, however, dismissed the case as politically-motivated amid continuing wrangling over control of a Croatian oil firm.

MOL isn't aware of any criminal charges against Chief Executive and Chairman Zsolt Hernádi, the company said on Tuesday, but acknowledged "recent press reports" that he had been charged--reports confirmed by Kresimir Devcic, a Zagreb court spokesman.

The Croatian move comes amid an ensuing legal battle between Croatia and MOL related to a bribery case in which, in 2012, former Croatian prime minister Ivo Sanader was convicted of accepting bribes while he was in office to allow MOL to have management rights over Croatian peer INA, according to a Croatian court.

MOL has repeatedly denied all the Croatian allegations. The company said Mr. Hernádi has demonstrated to the MOL board's "full satisfaction" why the allegations are unfounded and why the case is without merit.

The Zagreb court now has up to two months to evaluate Uskok's file on the case. Once the court gives the go-ahead, the trial may start within a month from that date, Mr. Devcic said.

The trial would also begin even in the absence of Mr. Hernádi if the Uskok file gets the green light, the court spokesman said. This comes after a Budapest court declined the extradition of Mr. Hernádi on the grounds that a Hungarian criminal investigation has found Mr. Hernádi innocent.

The Croatian government wants to regain control over INA, in which it holds a 44.8% stake following its privatization in 2003. MOL owns a controlling 49.1% and the firm's management rights.

Write to Veronika Gulyas at [e-mail]