MOL considers necessary to take legal response

The unfair proceedings motivated by economic interests have been dragging on for over 10 years in Croatia, despite the Croatian Constitutional Court's decision in 2015 stating that the former prime minister was convicted at the cost of serious violations of the law. Already at this point, the Constitutional Court pointed out multiple substantial procedural failures and remanded the matter for retrial. Since, failing to meet even the minimum requirements for a fair trial, the present proceedings involved even more alarming and obvious violations of rights, it is our conviction that the new ruling will also fail to stand up to Constitutional Court review. This view is supported by the 2018 decision of the Budapest Court of Justice, which found a risk of violation of the right to a fair trial and of the impartial assessment of the case in the Croatian proceedings. As a reminder, the international arbitration proceeding initiated by Croatia concluded with the verdict that The Tribunal has come to the confident conclusion that Croatia has failed to establish that Zsolt Hernádi did in fact bribe Sanader.

MOL maintains its earlier stance, firmly rejects allegations of improper business conduct and continues to defend himself by all means against unfounded allegations of crime. The Chairman-CEO continues to enjoy the full confidence and support of MOL Plc.'s Board of Directors. MOL's INA strategy and commitment to a corporate governance serving INA's best interests remain unchanged.

Timeline

MOL acquired its first 25 percent stake in INA in 2003, followed by another purchase of an additional 22.15 percent in late 2008, as well as reaching an agreement with the Croatian government about assuming control over the company. Next, MOL acquired further stock on the market, and currently holds a 49.08 percent stake in the company.

In 2011, the anti-corruption and organised crime agency of the Public Prosecutor's Office (USKOK) in Zagreb filed charges against former Croatian prime minister Ivo Sanader for receiving a bribe from Zsolt Hernádi. In 2013, USKOK also pressed charges against Zsolt Hernádi. In response to the allegations, Hungarian law enforcement also started its own investigation. In July 2011, the Central Bureau of Investigation of the Hungarian Chief Public Prosecutor's Office launched an investigation against an unknown perpetrator on suspicion of the criminal offence of bribery intended to induce dereliction of duty in international relations. The Chief Prosecutor's Office found that no criminal offence had been committed in the interest of MOL and by the executives of MOL, and in the absence of any criminal offence, discontinued the investigation.

Croatia had already sought remedy from the United Nations Commission on International Trade Law (UNCITRAL) in the matter in 2014, which reached a decision in December 2016. The UNCITRAL ruled that Croatia was unable to prove that MOL (or Zsolt Hernádi) gave a bribe to Ivo Sanader, underlining that the key witness, Robert Jezic was not credible, and the Croatian courts had shown partiality in deciding the case.

The consolidated lawsuit against former Croatian head of government Ivo Sanader and MOL Chairman-CEO Zsolt Hernádi accused of bribing him, was brought before the Zagreb County Court in the autumn of 2018. In December 2019, the court handed down guilty verdicts, sentencing Ivo Sanader to six years and Zsolt Hernádi to two years. The independent legal observers following the trial on site (judge Kai Ambos, professor at the Georg-August University in Göttingen and Lord David Anderson, a member of the Bar of England and Wales) believed that the Zagreb court violated the EU's norms regarding the right to fair trial and accused the Croatian prosecutors of partiality in the case. In July 2021, the defence filed a detailed appeal with the Croatian Supreme Court, which has now upheld the ruling of the Court of First Instance.