Svobodna Dnevnik

[Hadash]

Svobodna Dnevnik

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Handke Tapes: Allegations of shady deals hit Mordvania and Harmajaa
By: Polina Lamparska
Published: Septem, 1598


Mordvanian Obzorja submarine.

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In another chapter of leaks already known as "Handke Tapes", which are being shocking Mordvanian political system and voters for weeks already, the Slovogradanski zvon has published new transcripts, this time involving the Harmajaan government as well.

The allegations involve the payment of massive commissions and kickbacks between the Republic of Mordvania and Harmajaa to acquire Obzorja 20A-class submarines.

In 1589, the Harmajaan government had started a negotiation with Mordvanian Ministry of Defense over the procurement of expensive and complex Obzorja 20A-class submarine designs, eventually signing the contract in 1592 for a sum equivalent to 900 million. Despite the improving relationships between the Mordvanian and Harmajaan governments in the last years of Zvezdana Serebryak's presidency (1584-1590), the agreement came as a surprise then. The Mordvanian submarines were still in the prototype phase when the negotiations started, and would have taken years to manufacture and deliver, and the Harmajaan government was reportedly in negotiations with other governments, including Taeunas, Florinthus, Kazemura or Severyane, the latter entering in the competition by offering five submarines which were being decommissioned from the military service. However, the Harmajaan government was decided by the Mordvanian offer in an unexpected decision.

It was believed at the time that the negotiations with Mordvania proved successful probably as consequence of financial problems and political turmoil experienced in Severyane during those years -which was believed to be close to an agreement with Harmajaa in early 1590 to renew Harmajaan navy-, and because the Harmajaan government decided to take advantage of the lucrative final credits offered by the Mordvanian government.

However, the recordings published by Slovogradanski zvon newspaper showed a different picture. Last week, the Mordvanian newspaper started to publish transcripts from a conversation that Slavoj Kradek -Deputy Minister of Defense-, Minister Miroslav Bitenc and Milan Handke had in 1594 and it was secretly recorded. In the conversation, Kradek explains how the contracts were actually secured during the negotiations, and the advantages and disadvantages of repeating a similar strategy with then ongoing negotiations with the Pythian government (according to Kradek, Srecko Plotimek -then recently appointed Minister of Defense- would be on board).

According to Kradek, General Slavko Potrk (Chief of the General Staff of the Mordvanian Republican Armed Forces from 1586 to 1592), Miroslav Stovdek and himself, with the assistance of a well-known Mordvanian law firm, and through a financial fund owned by businessman Rado Chesarek -considered close to the Mordvanian Republican Party- set up a scheme in which commissions of 7% of the contract, approximately 60 million were paid out to lobbying firms in Mordvania and Harmajaa. Another 30 million were allegedly paid to several senior Harmajaan military officers as well as Harmajaan politicians, which Kradek described as "sweeteners". Kradek also tells later that another 2 million were paid to a recently appointed admiral shortly before the contract was made public in early 1592. Kravek justified such payments as necessary to "convince" Harmajaan political leaders and military officials, despite such actions would be illegal in Mordvania according to most legal experts.

Mordvanian President Aljaz Martelj and Harmajaan government signed off the final deal was that initially budgeted at 600 million but the programme of techology transfer would cost at least 1 billion, for which Mordvania first provided loans that were to be paid in six to eight years. It is unclear if the leaks would affect the ongoing payments and the relations between both countries. There is no official statement from the Harmajaan government yet, while Mordvania's State Procurator declared that they will study closely the allegations to determine if there is proof of any illegal activity.

It is unclear if such move is likely to prosper, as the Slovograd newspaper itself admits, they have no further proof of such payments to Harmajaan officials, beside what it is described during the recorded conversation.

Slavoj Kradek, who is currently retired from politics and who was hired by a Mordvanian defense corporation, has denied any personal wrongdoing and he has threatened the Slovogradanski zvon with legal actions.

Although no member of President Agnieszka Szczepanska's government is directly involved this time with these late leaks, they are likely to increase pressure on Szczepanska's Centre Democratic Party, as Alenka Levstik -leader of the Centre Democratic Party from 1589 and 1593- was Minister of Defense at the time, and therefore Kradek's political boss. Levstik who remained a member of the Mordvanian parliament until 1597, is also currently retired from politics and she has not made any public statement so far.