070.020    

EVIDENCE SUPPORTING THE CLAIM OF PASK KACINARI

Document number and name

First

page

No. of pages

070.020.010

Pask Kacinari's credit application

This document marks the beginning of the legal relationship between Pask Kacinari and ZABA.

12-01

1

070.020.020

ZABA'S decision to approve a long-term credit to Pask Kacinari

Upon approval, Pask Kacinari deposited a Guarantee Deposit, with which he purchased ZABA shares as security for the credit.

12-02a

2

070.020.030

Decision approving a short-term credit to Pask Kacinari

In addition to his long-term credit arrangement, Pask Kacinari was also approved a ZABA short-term credit.

12-03

1

070.020.040

Investment credit Agreement between ZABA and Pask Kacinari

On the basis of this Agreement, Pask Kacinari drew his long-term credit, which he paid back in time and in full (with a 249% annual interest rate!) To repeat, as security for the credit, ZABA purchased in Pask Kaciinari's name ZABA shares, out of the funds of his Guarantee Deposit.

12-04a

4

070.020.050

Short-term credit Agreement between ZABA and Pask Kacinari

12-05a

3

070.020.060

Checking account contract between ZABA and Pask Kacinari

Pask Kacinari also had a ZABA checking account.

12-09a

2

070.020.070

Contract on a guarantee deposit of 13.11.1990, obligating ZABA to purchase shares in favor of Pask Kacinari's firm, PAKA

On the basis of this Contract, ZABA was obligated to use the entire Guarantee Deposit for the purchase of ZABA shares - straight from the Emission, i.e. at nominal price.

11-01

1

070.020.080

Receipt of payment for purchase of shares

Proof that Pask Kacinari paid the stipulated Guarantee Deposit in full for the purchase of ZABA shares.

11-01a

1

070.020.090

Receipt of credit insurance payment

This was an additional form of credit insurance, in addition to the above Guarantee deposit.

11-01b

1

070.020.100

Credit transaction records

ZABA provided Pask Kacinari with this transaction record showing that the credit was returned in time and in full, at 249% annual interest.

HOWEVER, EVEN THOUGH ZABA IS ABLE TO PROVIDE THE CREDIT TRANSACTION RECORD, ZABA TO THIS DAY REFUSES TO PROVIDE THE GUARANTEE DEPOSIT TRANSACTION RECORD, BY WHICH IT WAS OBLIGATED TO PURCHASE ZABA SHARES TO PASK KACINARI'S NAME. IN OTHER WORDS, ZABA IS ATTEMPTING TO CONCEAL THE FATE OF THE GUARANTEE DEPOSIT - AS BOTH PASK KACINARI'S MONEY AND THE SHARES HAVE SOMEHOW BEEN "LOST"!

12-06a

3

070.020.110

Mortgage erasure record

Issued upon Pask Kacinari's return of the long-term credit in full. (It is to the name of a third party, which guaranteed for the credit with a real-estate property.)

12-07

1

070.020.120

Decision to transfer share ownership rights from PAKA back to Pask Kacinari

PAKA INTERNACIONAL, the entity which made the relevant Agreements with ZABA, was Pask Kacinari's private company. Upon the company's liquidation, all its ZABA share rights passed back to its founder, Pask Kacinari.

12-08

1

070.020.130

Share transfer Agreement between PAKA and Pask Kacinari

In reference to previous item.

12-10

1

070.020.140

ZABA computer record that Pask Kacinari's deposit of 13.11.1990 was not closed until 17.05.2001, contrary to ZABA claims.

The deposit formed on the basis of the Guarantee Deposit Contract, on the bais of which ZABA was obligated to purchase to Pask Kacinari's name ZABA shares straight from the Emission, i.e. at nominal price, was somehow "lost". ZABA refuses to disclose the fate of this deposit or its transaction record, nor in whose name shares belonging to Pask Kacinari were in fact purchased. However, an "uninstructed" ZABA bank teller, "accidentally" issued to Pask Kacinari this record showing that the said Deposit was not closed until 2001 - at the time when Pask Kacinari began inquiring about his "lost" shares.

On the other hand, in court proceedings, ZABA claims that the DEPOSIT WAS CLOSED IN 1991. Still, both at the bank counter and in court, ZABA CANNOT ANSWER THE FOLLOWING QUESTION: "BY WHOSE ORDER WAS PASK KACINARI'S DEPOSIT CLOSED?"

11-02a

2

070.030           

EVIDENCE THAT THE ZABA SHAREHOLDER REGISTER IS ILLEGAL

Document number and name

First

page

No. of pages

070.030.010

ZABA Act on issuing Series I shares

From this Act can be seen that on 27.12.1989, there were 863,000 Emission I, Series A shares. Subsequently, in the period up to 31.12.1993, in a mysterious way, without a corresponding capital increase and without a new share emission, the number of shares "bloated" to 1,862,115. ZABA refuses to disclose how this mysterious share increase came about. UNICREDITO and ALLIANZ shareholders are entitled to know the origin of the "phantom shares" their management bought!

01-01

5

070.030.030

Final audit Act for the year 1991

ZABA has never been subjected to an independent, full audit. Thus, it cannot be known what such an audit would find. Nevertheless, documents such as this one would furnish answers to questions regarding how shares were "formed out of thin air," or how shares of investors such as Pask Kacinari were "lost".

01-02

1

070.030.040

Decision to issue commercial notes - 1st emission

Croatian "Hrvatsko Slovo" magazine published an article during 2004 charging that this document is actually a "decision to covertly issue shares." The answer to this claim could be furnished only by an independent audit, which would also serve to uncover how ZABA shares were created "out of thin air," and how shares of investors such as Pask Kacinari were "erased."

01-03

1

070.030.050

Decision on changes and addendums to the ZABA Founding Act, of  07.06.1991

This is one of a number of retroactive decisions by which ZABA founding acts were amended, as well as decisions to issue shares. The number of such decisions cannot be ascertained at present. However, laws and regulations have never allowed for ZABA or any bank to make decisions having a retroactive effect.

01-04

1

070.030.060

Page from the ZABA Official Gazette for the year 1992, proving that the number of founding investors was increased on 31.12.1991

This in fact means that during a time of war, hunger and economic meltdown, the number of ZABA shareholders - persons having a legal status - grew. However, it is not known who these "new investors" were, nor how much capital they brought in.

01-05

1

070.030.070

Final audit Act for the year 1992

01-06

2

070.030.080

Final audit Act for the year 1993

Perhaps the above documents contain the answers to the questions we pose. However, only independent audits and reviews would be able to determine that - but ZABA has consistently avoided this!

01-09

3

070.030.090

ZABA transformation into a shareholder company, in accordance with the Yugoslav Bank Law

ZABA was originally founded, i.e. "reorganized" under communist laws,  into a state-owned shareholder entity. Its shareholders were state-owned companies awaiting privatization.

The sum total of all remittances into the founding fund indicates that only 851,827 Emission I, Series A shares were issued, even though the Decision to Issue Emission I shares gives the figure of 863,000 shares.
 

02-01  

4

070.030.100

Excerpt from ZABA books, of 31.12.1993, showing total number of shares

Yet, contrary to the above-cited original Decision to Issue Emission I shares, according to which 863.000 shares were issued, 4 years later, according to this Excerpt, ZABA's books record a total of  1,862,115 Emission I shares.

Once again, their appearance is a mystery, as no ZABA capital increase was recorded in this interval, and no new shares of this series were issued.

This serves as proof that ZABA continued issuing new shares up to 31.12.1993, recording them in its register as Emission I, Series A shares. Thus, this also proves that ZABA was able and obligated to use the entire amount of Pask Kacinari's deposit to purchase Emission I, Series A ZABA shares at nominal price, as it was bound to do by Contract.
 

04-01

1

070.030.110

Excerpt from ZABA books, of 30.09.1994, showing the total number of shares - an unexplained increase

The total number of Emission I, Series A shares has now "grown" to 2,661,196. The mysterious shareholders of the mysteriously materialized shares were granted a 42.86% "increase" in the number of their shares. However, the identity of the mystery shareholders continues to be concealed, along with the way in which they came by their shares.

04-02a

2

070.030.120

Profit and Loss Statement for 2001

Reading p. 5, it becomes clear that the Auditor himself has no knowledge of the total number of ZABA Treasury shares held as security. It seems that the mystery shares have been held in the ZABA Treasury the entire time, and that ZABA Management used them to vote, even though the law forbids voting rights to Treasury-held shares. Also, it is not known who received the dividends due these shares.

Also interesting is that, on the same page, a ZABA "privatization" is mentioned, dating back to 1989, which is a clear falsehood. Absolutely no privatization took place in 1989, which can be proven by all documents from that year.

05-01a

10

070.030.130

Annual Report for 2003

Pages 7 and 8 show that ZABA (along with Allianz and Unicredito, as its majority shareholders), played an dynamic part in increasing the Croatian economy's foreign debt. Thus, Allianz and Unicredito hold a high responsibility for the liquidity of the Croatian economy as a whole and the Croatian State's ability to regularly service its foreign debt.

10-01-01

39

070.030.140

Copy of Emission II Series II C share no. 2 9295 - except that the current ZABA Share Register lists only 11,325 such shares!

According to official ZABA Acts, 50,000 such shares were issued: WHO ERASED THOUSANDS OF LEGAL SHAREHOLDERS?

06-01

1

070.030.150

Copy of Emission II Series II C share no. 29295 (II)

06-01a

1

070.030.160

Copy of Emission II Series II C share no. 49673 - but, again, the current ZABA Share Register lists only 11,325 such shares!

According to official ZABA Acts, 50,000 such shares were issued:WHO ERASED TENS OF THOUSANDS OF LEGAL SHAREHOLDERS?  

06-02

1

070.030.170

Copy of Emission II Series II C share no. 49673 (II)

06-02a

1

070.030.180

Decision to pay dividend for Emission II, Series C shares

This Decision implies that ZABA sold a total of 25,000 Series II C "preferrable bearer" shares to the public. However, this is in clear contradiction to:

• the fact that on each share it is explicitly printed that 50,000 total shares were issued,

• data from ZABA's annual reports, which mention only 11,325 shares being registerd in the books. HOW DID SO MANY LEGALLY ISSUED SHARES DISAPPEAR? WHAT ABOUT THE PROPERTY RIGHTS OF THE "ERASED" SHAREHOLDERS?
   

06-03b

2

070.030.190

A short history of ZABA as portrayed on the ZABA website

Most of the claims on this web page are false. For example, ZABA claims that it was founded before WW I, when in fact it was a product of Communist era fusions in the Croatian banking sector in the second half of the 1970s.

Also, ZABA claims that it underwent privatization in 1989, which is an outright lie, which is evidenced in ZABA's own documents from that year. Absolutely no privatization took place in 1989, and there is not a single document as evidence of such a process having taken place.
 

10-01-44

5

070.040

SECRET SHARE AUCTIONS 1993-1994

Document number and name

First

page

No. of pages

070.040.010

Confidential internal ZABA diagram of secret auctions produced by ZABA management, at which auctions ZABA covered all bases - being auction organizer, sellers' agent and secret buyer, all conducted under secret rules

In 1989, ZABA transformed into a shareholder company, with the shareholders being legal entities and founders of the bank. On 27.12.1989, there were a total of 1,287 such founders, who represented the majority of the Socialist Republic of Croatia's economy, of almost 100% of the Zagreb region's economy.

ZABA's Management (in cooperation with influential groups of Croatia's political scene at the time) "transferred" these shares to various off-shore companies in the period of 1993-1994. Thus, the original founders of Croatia's largest bank - the largest state-owned companies - lost their founding status prior to being privatized.

The shares were "transferred" to off-shore firms via secret, illegal auctions organized by ZABA's Management.

According to this preserved Diagram, it can be seen that ZABA's Management was at the same time:

a) the sellers' representative,
b) the covert buyer or buyer's representative,
c) the auction organizer,
d) the author of the secret rules according to which the auctions were run.

It should be noted that the key feature of the auctions is the so- called "jeftimba" - or "knock-down" - by which ZABA Management through illegal manipulations lowered the share price, to the detriment of the seller and the benefit of the buyer. Interestingly, there is no such word in the Croatian language, which means that ZABA Management went so far as to invent a new word that would match their invention - knocking down share prices at secret auctions.

Thus, the purpose of the ZABA-managed share auctions was to knock down share prices. This is contrary to the very purpose of auctions, which are supposed to secure the highest possible sales price for the seller. However, in this case, the seller was also the covert buyer or buyer representative, as well as the seller's representative, in addition to being the author of the auction rules, which were themselves - secret.

In this way, ZABA shares passed into the hands of an unidentified interest group, which initially kept them in various off-shore firms, and then exchanged them with ALLIANZ and UNICREDITO S.p.A., in such a way so that they are the keepers of each other's shares. As for the identity of the unidentified interest group that gained control over ZABA shares, it may be surmised that they belong to the Croatian political elite as well as ZABA's Management, which was - then and now - headed by Mr. Franjo Lukovic.

It is not known whether these secret auctions extracted only the shares of the original ZABA founders from 1989, or whether they also included the subsequently issued Emission I, Series A shares, up to 31.12.1993. Auditing reports show that the ZABA Treasury has up to this day held "a certain number" of Treasury shares, with which, contrary to law, ZABA Management has voted. This "certain number" has not been determined by anyone, including the audigors themselves.
 

a9-2-5

1

070.040.020

Secret ZABA privatization project

According to this secret project, it comes out that ZABA shares are to pass under the ownership of a mysterious "ZABA HOLDING," a limited company founded by ZABA itself, which means that ZABA was slated to become - its own owner.

This secret project was signed by Nikola Kalinić, present-day Deputy President of ZABA's Management, and Duilio Belic, who, according to the Court Register of the Varazdin Commercial Court, represents ZABA in the Supervisory Board of the Varazdinska banka bank. During the Communist ere, Belic was direcotor of "SOUR Prvomajska", one of the largest manufacturers in ex-Yugoslavia, producing a wide variety of metal products, including "special purpose" products, i.e. weapons parts.
 

a9-2-6

2

070.050

EXCHANGE OF SHARES BETWEEN CROATIAN WARLORDS AND ALLIANZ AG/UNICREDITO ITALIANO S.p.A.

Document number and name

First

page

No. of pages

070.050.010

Secret document on exchange of ZABA shares, of 15.02.2002

This document shows how ALLIANZ A.G. and UNICREDITO S.p.A., through the good offices of ZABA's Management, exchanged shares with an unknown interest group, represented by Mr. Franjo Lukovic, ZABA's Chairman of the Board. This makes ALLIANZ and UNICREDTIO keepers of stolen shares.

Interestingly, this document is "not for distribution in the U.S., Canada, Australia and Japan."
 

a9-1-1

18