After the Conflict of Interest Commission has launched a case against him, Zagreb Mayor Tomislav Tomasevic said on Wednesday that the decision on new management and supervisory boards in the Zagreb Holding utility company was legally valid and in accordance with the law on local and regional government and the Companies' Act.
The case against Tomasevic was opened due to a possible breach of Article 15 of the Conflict of Interest Act, after staff were appointed in Zagreb Holding contrary to normal practice, the Commission head Natasa Novakovic said.
Tomasevic noted that the decision has already been registered in the Commercial Court register.
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“With reference to launching the procedure before the Conflict of Interest Commission for an alleged breach of procedure, we assessed that the situation in Zagreb Holding warranted immediate action and we decided to adopt decisions according to valid laws and the usual practice. We need to underline an additional circumstance, that until the representative body is constituted, it cannot propose new members to management and supervisory boards,” Tomasevic said in a press release.
The Mayor’s office mentioned the Commission’s opinion from 2013, which says that “in cases where collision between provisions of Article 15, paragraph 2 of the Act and the provisions of article 48 of the Local and Regional Self-Government Act occur, the provisions of the law that enter into force later are applied – lex posterior derogat legi priori – hence the provisions of Article 48 of the Local and Regional Self-Government Act.”
Based on that article, mayors and county prefects appoint and relieve representatives of local government in local companies in which the local government holds a stake or ownership shares.
After an agreement was signed between Tomasevic’s Mozemo! platform and the centre-left Social Democrats (SDP) to form a coalition in the Zagreb City Assembly, SDP leader Pedja Grbin said the Commission had reacted to a legal article it had previously wanted erased, considering that the 2012 law on local government regulated the issue of appointing members to management and supervisory boards in companies owned by local government in a different way.
“With due respect to the Commission and to the excellent work it does in numerous spheres, this isn’t its duty, but that of the legislator,” said Grbin, who called on the government to send amendments to the laws to parliament as soon as possible.
“I expect the government to forward amendments to the law on local government or the law on the conflict of interest as soon as possible so that this issue is absolutely clear and unambiguous and to define how management and supervisory boards in companies in local government are to be appointed,” added Grbin.
He urged that the amendment be brought urgently as this same situation could occur in other cities around the country and that a broad consensus should be reached on this matter.
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