The Croatian government has sacked three of four management members of state highway company, HAC, including the company's chief executive.

"The reason for this (sacking) is bad climate within the company, which made the normal running of business impossible," Transport Minister Bozidar Kalmeta told reporters after a closed cabinet meeting.

HAC was recently targeted by the local media for illegal business deals related to the company, which allegedly set up the outcome of some tenders and paid more than necessary for construction work. 

Kalmeta said the sackings were not connected with those allegations. 

"Relations within HAC are the only reason. Our goal now is to make the new management free of political influence." 

The firings are the latest in a series of management removals in companies where the state has a stake since Prime Minister Jadranka Kosor took over in July.

Fighting corruption is a key requirement for Croatia to be able to wrap up European Union entry talks next year. 

Two months ago the government sacked the entire management of state electricity board, HEP (www.hep.hr), after allegedly providing illegal benefits to some employees.

HAC (www.hac.hr) is one of the biggest Croatian companies and is in charge of transport infrastructure. 

Reuters, Balkans.com Business News