Public declaration

Sep 22, 2017

After the incredible events surrounding Agrokor, this is the first time I'm addressing the public with facts related to Agrokor and myself personally. I believe it's expected of me to explain all the events, and it is exactly my goal to leave no question unanswered in the following days and weeks. My reason for not going public until now was that I did not want to cause any harm to Agrokor, its employees, investors or other stakeholders until I have determined the facts with a team of financial and legal experts in this, as time will tell, biggest scandal in recent Croatian history.

In the beginning of 2017, when Agrokor was managed by my management and myself, the company had a strong plan for development, successful growth and the fulfilment of all obligations toward its creditors, which was Agrokor's policy throughout all the decades of its existence and successful business.

During that time the Government of the Republic of Croatia was using political manoeuvres wanting to assume control over Agrokor through what was obviously a carefully prepared plan. The targeted spread of misinformation and negative rumours conducted by the highest officials in the legislative and executive government during the first months of 2017 destabilized Agrokor. Through lies and manipulations, the Government has mislead the entire public. Through the use of constructs and the completely inappropriate media activities they have established a framework for obtaining political allies. Instead of the facts and truth they have attempted to portray Agrokor as the Parmalat case by suggesting the alienation of enormous sums of money. Today, seven months later, there is no Parmalat case.

The goal of such actions by the highest officials within the Government and Parliament, through direct political intervention, is the enactment of the unconstitutional act Lex Agrokor and the nationalisation of private property. Such a case of seizure of private property is undocumented in modern-day Europe. Myself and the Management Board of Agrokor have, and at this point I wish especially to stress out, signed the activation of the act after being subjected to blackmail, coercion, threats, manipulation of legal provisions and the incredible media persecution.

Where others destroyed, we built bridges – invested BILLIONS – in Croatia as well as neighbouring countries, provided people with the latest knowledge and technologies. Where politicians displaced their people abroad, we created conditions for their stay and prosperity as successful and satisfied people.

During our ambitious development, like many other companies, especially ones in transition countries, we have always met with challenges. However, we always resolved them successfully. In the beginning of 2017 there was not one extraordinary event present in the business activity of Agrokor. Instead, we had better standing than before and had great perspectives.

Our business results are measurable, as are the results of the extraordinary administration managing the seized company.

Under the extraordinary administration significant portions of Agrokor's assets have been blocked, and the control over part of operation in neighbouring countries has been lost, with numerous court claims being initiated against Agrokor threatening the overall stability and sustainability of the company. Income is reduced by approximately 20%, and the synergies, with the billions invested in them, and worth billions by themselves, are being relentlessly destroyed. The extraordinary administration isn't treating suppliers equally. Agrokor is burdened by an unnecessary and illegal loan, designed for their own benefit by vulture funds abusing the current situation, with the entire key strategic assets placed under lien for the benefit of the Madison Pacific ltd trust with the seat in Hong Kong.

If this situation continues, all the creditors except for Ramljak's privileged funds and suppliers, partners, consultants and colleagues close to him will lose enormous amounts. That is the real truth. Everything else is lies and falsities by the extraordinary administration and its political sponsors, which time and facts will demonstrate real soon.

During the moments of assault on Agrokor through the dirtiest political and media campaign in the history of our country, the Government of the Republic of Croatia did not, like other Governments of developed countries, from the US to Germany, support its kez industries and its largets entrepreneur, but instead was a key participant of the campaign and performed an unconstitutional and illegal nationalisation, which will, I assure you (as time will tell), in their consequences to Croatian economy and industry be equal to high treason.

Today the house of cards, built by lies by the representatives of government in the Republic of Croatia, Martina Dalić, Ante Ramljak and their partners and associates, is crumbling.

What remains are the balance sheets of Agrokor and its companies where, through constructs and pressure, the extraordinary administration of Agrokor headed by Ante Ramljak enabled the people from Knightead fund to directly manage and manipulate Agrokor's balance sheets. They do so to create preconditions for acquiring hundreds of millions of Euro of undue financial gain. Agrokor's billions are truly lost. But not through the action actions by myself or my associates, but through the Government's actions before and after the enactment of Lex Agrokor. We shall soon speak publicly about this issue.

The citizens of Croatia and he region will be assured that the nationalisation of Agrokor – a political project designed by the Government of the Republic of Croatia – in completely contrary to the interests of the Republic of Croatia.

The Government's decision on nationalisation of Agrokor caused far-reaching economical and financial damages already measured in billions of Kuna. The industry and its market position in the European Union is being destroyed. Croatia and the region is simultaneously losing their synergy effects in the EU. Such decisions by the Government of the Republic of Croatia have dragged the country in a position of high social and political risk for which they will not be able to avoid responsibility, because behind every illegal seizure, behind every criminal activity, there are always individuals with concrete names and surnames.

I will therefore, in the coming days, for the purpose of protection of investment into Agrokor, workplaces and the economies of countries we do business in as well as the protection of all our stakeholders, exercise all legal actions available to me in Croatia as well as before international bodies. At the same time I will use public announcements and the publishing of relevant documents to completely expose the conjunction of politics and the private interests of fund managers and important people from Agrokor itself, which is the real reason of enacting the unconstitutional act Lex Agrokor.

Ivica Todorić

Potpis Ivica Todorić