Croatia: Gov hires US lobby firm Patton Boggs in dispute against MOL

Published on 27. March 2015., SEE Energy News

Government has paid 2.3MEUR for consulting services in the proceedings against MOL.

In only a year, from November 2013 to November 2014, the Croatian Government paid 15.5 million kunas from budget reserves to the American lobbying law firm Patton Boggs LLP for legal and consulting services in the disputes of the Republic of Croatia against the Hungarian MOL.

These are the lawsuits brought in two international arbitration bodies in Paris and Washington in which the Croatian Government and MOL are trying to solve the managerial and ownership disputes related to Ina, as reported by Croatia “The Morning Paper”

Croatian medias came to the total amount of 15.5 million kunas paid to Patton Boggs within a year on the basis of the data stated in the official Government reports on the use of funds from budget reserves. As a reminder, the funds from budget reserves are intended for settling emergency and unforeseen costs, such as those caused by natural weather disasters and epidemics.

The first transfer from budget reserves to the account of Patton Boggs was carried out in November 2013 in the amount of 609.726,14 kunas, and the second in December 2013 in the amount of 610.151,20 kunas. During 2014, there were eight more payments from budget reserves to the account of Patton Boggs in the total amount of 14,277.577,00 kunas.

Already before, the Croatian media announced the data, which has never been refuted by the Government, that the Ministry of Economy had ensured two million kunas for the costs of legal services in the Government-MOL dispute.

If this amount is added to the one paid from budget reserves, it turns out that 17.5 million kunas were paid from budget reserves to the account of Patton Boggs within one year only, from November 2013 till the end of 2014.