Business News

Finance Oversight Commission Demands Inquiry into Mismanagement at NLB

Ljubljana, 05 July (STA) - The parliamentary Public Finance Oversight Commission asked Thursday the Capital Assets Management Agency to conduct an audit of $dodgy deals$ at the state-owned NLB bank. Members also asked the government and the bank to look into causes and responsibility for NLB's poor financial condition which is further aggravated by bad loans.

The opposition-controlled parliamentary body continued today the session which was suspended last Wednesday, voting in favour of the motion by SocDems (SD) deputy Janko Veber who called for a special audit of the banks' deals.

In particular, the commission wants the audit to look into large loans gives to individuals and companies with connections to the NLB and draw up the basis for potential lawsuits.

The commission also asked the government to present the results of a due diligence which are on the agenda of the cabinet session scheduled for later today. The commission will continue the session when it receives the documents.

The need to look into NLB's past lending was the only subject that saw agreement from both coalition and opposition members of the commission. All other topics at today's session were marked by disagreement along party lines, with the opposition crying foul over "non-transparency" of the NLB's recent capital increase.

"This is a disgrace", said Positive Slovenia (PS) deputy Alenka Bratušek, saying the lawmakers had "the right to know what was really going on". The coalition on the other hand maintained that the recapitalisation was transparent and that there was no need for further discussion.

State secretary at the Finance Ministry Dejan Krušec stressed all decision made at the NLB's shareholders' meeting were public. Commission members can get the information from the media, he added.

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