CROATIA PURSUING MAJOR LAW ENFORCEMENT REFORMS IN

UNCLAS SECTION 01 OF 03 ZAGREB 000766 SENSITIVE SIPDIS FOR EUR/SCE AND DS/IP/EUR E.O. 12958: N/A TAGS: PREL PGOV KCRM ASEC HR SUBJECT: CROATIA PURSUING MAJOR LAW ENFORCEMENT REFORMS IN WAKE OF MURDERS REF: A. REF A: ZAGREB 750 ¶B. REF B: ZAGREB 704 ¶1. (SBU) SUMMARY: The Croatian law enforcement system is undergoing a massive shake-up in reaction to several high-profile, mafia-style killings in Zagreb in October (Ref A and B) and long-stalled initiatives to fight organized crime are now quickly being implemented. These initiatives include the formation of a national investigative unit, referred to in the press as the Croatian FBI, and adoption of new anti-mafia legislation as well as a reshuffling of leadership throughout the police forces. The new Ministers of Justice and Interior highlighted the new measures in an appearance before the Croatian Sabor on October 29. END SUMMARY. Leadership Changes at Police -------------- ¶2. (U) Immediately following the shooting death in central Zagreb of a prominent lawyer's daughter on October 6, Prime Minister Sanader replaced the Ministers of Justice and Interior and the Director of Croatian Police (REF B). The shake-up, which included the appointment of the former head of the Intelligence service, Tomislav Karamarko as the new Interior Minister, received positive media coverage. ¶3. (SBU) Karamarko and the new police director, Vladimir Faber, previously chief of police in Osijek, are now in the process of making staff changes. Faber has been particularly outspoken, telling the press that many top-level police officials had obtained their positions due to political connections rather than professional qualifications, and that this practice would have to end. He has followed up on this rhetoric with a series of dismissals and appointments within the police. New appointees include Boris Spudic, filling a nearly one-year vacancy in the critical position of Chief of the Criminal Police; Zlatko Sokolar as Chief of Police in Dubravacko-Neretvanska county; and Ivica Tolusic as Head of the Operational-Communications Center at the Ministry of the Interior (MOI). Dario Dasovic is now in charge of the Narcotics Department, Sanja Roguz is leading the Department for Criminal-Intelligence Analytics, and Damir Kukavica is heading of the Department for General Crime, Terrorism, and War Crimes. Mato Blazanovic will lead the Department for Witness Protection. Many of the new appointees -- including Faber himself, who was an IV program participant -- have participated in USG training programs and have a strong working relationship with the Embassy. The Croatian FBI -------------- ¶4. (SBU) The long-rumored "Croatian FBI," formally called the National Police Office for the Investigation of Organized Crime, suddenly became a reality when, on October 27, Faber appointed Tihomir Kralj to head the office, with Zeljko Brincka as his deputy. Kralj was previously head of the Drugs-Crime Department and Brincka was chief of the Crime-Analysis Department. On the same day, the police announced that the Office had already begun operations. Special police teams from the office will be working directly with the Tax Administration and Customs Service to identify the revenue streams and properties of mafia members. The new Office has also been called the "USKOK police" due to its close association with the work of the Office for Suppression of Organized Crime and Corruption (USKOK) in the State Prosecutor's office. ¶5. (SBU) Sources told Poloff that the new Office was actually formed two months ago by decree of the minister, which a source called a "sub-legal act," but staffing disputes had left key positions unfilled. The Office, one source stated, would be more effective and visible if it was established by a law similar to that which established USKOK in the prosecutor's office. Currently, the police Office does not have formal contacts with prosecutors, who are unsure of its structure, since there is no underlying law governing its organization. At this point, it is unclear whether the new Office has a permanent staff or consists of personnel who will continue to work from their existing departments. Legislative Changes ZAGREB 00000766 002 OF 003 -------------- ¶6. (SBU) On October 29, the new Ministers of Justice and Interior, Ivan Simonovic and Tomislav Karamarko, appeared before the Croatian Sabor to describe to legislators the steps they have already taken since their appointment on October 10 and to highlight changes they are proposing to Croatian laws. Sources briefed Poloff separately on details of the new measures. Several of them, such as asset forfeiture procedures, already exist under Croatian law but were not fully utilized prior to the murders, sources claimed. Amendments to the criminal law and the law on criminal procedure which have been advocated by USG-funded assistance programs during the past few years, such as reform of investigative procedures and strengthening asset seizure laws, are part of the anti-mafia package currently in development. USKOK Courts -------------- ¶7. (SBU) The creation of special USKOK courts to try organized crime and corruption cases is also receiving extensive media attention. The press has been critical of both the courts and prosecutors for their inability to conclude most of the corruption cases brought by USKOK to date. The new Rule Book for Courts implements the designation of specific courts for USKOK cases. These will not be special courts, per se. Instead, the presidents of the four largest courts, the county courts in Zagreb, Osijek, Rijeka, and Split, will each designate a pool of judges who are specifically authorized to hear cases brought by USKOK prosecutors. The judges responsible for USKOK cases will need to pass a special security check and obtain a security clearance. In an agreement between Minister Simonovic and President of the Supreme Court, Judge Hrvatin, all hearings for pending USKOK cases must be scheduled at the designated courts and begin within two weeks. USKOK Investigations -------------- ¶8. (SBU) Minister Simonovic also announced that the new Law on Criminal Procedure, which will shift responsibility for pre-trial investigations from investigative judges to prosecutors, will be implemented for USKOK before the rest of the legal system. The law should take effect for USKOK in July 2009, while other prosecutor's offices will not implement the law in full until 2011. A source in the prosecutor's office said there is an urgent need to train USKOK prosecutors now in order for them to be effective when their investigative authority expands next year. Asset Forfeiture -------------- ¶9. (SBU) Asset seizure and asset forfeiture laws, according to one source, are currently inadequate, as they only allow prosecutors to target members of organized crime groups. The new measures seek to broaden the scope of criminal acts which allow for asset seizure, including all corruption cases, trafficking in persons, and narcotics trafficking. In addition, these asset seizure measures could be used against individuals, reagrdless of whether they could be specifically identified as members of criminal organizations. Minister Simonovic announced that an amendment to the Croatian Penal Code will take effect at the end of the year to allow all assets to be forfeited by those convicted of organized crime unless the convict can prove the legal origin of assets. Banking Secrecy -------------- ¶10. (SBU) Minister Simonovic also announced plans to change banking secrecy laws through amendments to the USKOK law. Currently, banks can refuse to provide information to USKOK about their clients' accounts. If an investigative judge agrees with the USKOK request and the bank continues to refuse to comply, the bank might receive a minimal fine. The new amendment would do away with the account secrecy protections in USKOK cases and will give organized crime prosecutors easier access to banking records. Police Force Restructuring and Expansion -------------- ZAGREB 00000766 003 OF 003 ¶11. (SBU) Interior Minister Karamarko told the legislators that staff changes and restructuring of the police should be completed within the next 30 days. He said that the work of law enforcement groups will be more closely coordinated with the intelligence services, which he headed until his current appointment this month. He announced that 250 police officers had already been reassigned to Zagreb to enhance security in the capital. Finally, he said that the Interior Ministry must increase its staff and toward that end, the police academy will increase its admissions from 1400 to 2200 trainees. Looking for a RICO Act -------------- ¶12. (SBU) With the anti-mafia package receiving wide press coverage, several media outlets reported positively about the U.S. RICO Act, saying that it is a strict law which provided excellent results in the United States in the fight against the mafia. Several judges have also told Poloff privately that they would like to see a law similar to RICO for Croatia. USG Assistance/ICITAP Advisor -------------- ¶13. (SBU) Post, in close coordination with the ICITAP Organized Crime Advisor for Croatia, is developing an action plan to address the changes to the law enforcement system and help the police strengthen their anti-mafia activities. Several key persons involved in drafting or implementing the new anti-crime legislation have close relationships with the Embassy and the ICITAP program, and many of the new measures reflect advice received through USG-funded programs. (NOTE: The ICITAP program is currently funded through April 2009, when the program is scheduled to end. The ICITAP advisor maintains an office at the MOI. We are currently seeking appointments with key policy makers such as Faber and Kralj to confirm their receptiveness to continued US training and advice on fighting organized crime. Assuming they are receptive, Post will be seeking funds to extend the ICITAP program for one year beyond April 2009. END NOTE.) COMMENT -------------- ¶14. (SBU) Croatia had some effective tools, such as USKOK, to target organized crime, but an inability to coordinate closely with the police and delays in getting cases through the courts have hampered the fight. The new leadership at Justice, Interior, and within the police appears to be making progress in putting long-needed reforms in place. The recent murders and accompanying media frenzy and calls for action provided the environment for this progress. Despite the rush to show action, the government's response to date benefits from the considerable preparatory work already done on many of these issues, and is producing law enforcement structures with the potential for long term benefits for Croatia. Bradtke