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Results of Agrokor audit justify adopted special law - Croatian govt

Results of Agrokor audit justify adopted special law - Croatian govt Croatian parliament. Author: sabor.hr License: All rights reserved.

ZAGREB (Croatia), October 6 (SeeNews) - The results of the financial audit of key companies within Croatia's ailing concern Agrokor justify the adoption of special law on extraordinary administration, which saw the state take control of the privately-held concern in April, the government said.

The law, commonly known as Lex Agrokor, has preserved jobs and contained the spread of systemic risk across the economy, the government said in a statement late on Thursday, after the Agrokor receiver unveiled the results of the audit conducted by PricewaterhouseCoopers LLP. 

The audit revealed huge discrepancies between 2015 financial results of nine key companies within Agorkor reported earlier and the audited figures. Inflated value of assets, understated claims towards group members, over-estimated inventory and undocumented costs were some of the reasons for the discrepancies.

Agrokor owner Ivica Todoric, who earlier threatened to sue the government over what he described as unlawful seizure of property, commented in a post on his personal blog on Thursday: "I am analysing the audits with my financial experts and I will make my thoughts known in the coming days".

In April, Agrokor named PricewaterhouseCoopers LLP as auditor of the concern's financial statements after preliminary probes revealed that potential accounting errors might have been committed.

The consolidated results of Agrokor will be unveiled on Monday and then the government is expected to comment.

Lex Agrokor was adopted to prevent the collapse of the indebted concern. The government has said Agrokor is a company of systemic importance for Croatia and its collapse could have a catastrophic impact on the economy.

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