Croatia sacks state firm's management over corruption

(ZAGREB) - The Croat government on Saturday sacked the management of national motorways company HAC on suspicions of corruption, which the country is seeking to crack down on as part of its bid to join the EU.

Three of the state-owned company's four management members, including its head Jurica Prskalo, have been sacked, a government statement said.

"The climate that has been created in and around (HAC) ... made functioning of this very important public company impossible and we have decided to make changes," Transport Minister Bozidar Kalmeta told national radio.

For the past few months local media have been reporting on a series of corruption affairs linked with HAC that are being probed by police.

HAC is in charge of operation, construction and maintenance of some 1,000 kilometers (625 miles) of Croatia's motorways.

During the past few months the former Yugoslav republic has seen several corruption probes in public companies that are perceived by independent media and the public as hotbeds of corruption.

In September, the government sacked the entire management of the country's largest state-owned power company HEP following an investigation into abuse of power.

Economy Minister Damir Polancec resigned last month amid media reports and public pressure over his alleged links with a major local corruption affair.

The fight against corruption and judicial reforms are among the main conditions Croatia has to meet as part of its bid to become the European Union's 28th member by 2011.