HS Produkt Owners (Manufacturer of XD Pistols) Arrested for Bribes

The three owners of HS Produkt have been arrested today in Karlovac, Croatia. Ivan Zabcic, Marko Vukovic and Tomica Godec have been charged with taking bribes and abuse of office in the Daimler AG kickbacks case. HS Produkt is best known for manufacturing the XD and XDm lines of pistols for Springfield Armory, and is currently working on the VHS Assault Rifle . . .

Zabcic, Vukovic and Godec also own HS Produkts sister company IM Metal, which was implicated in the Daimler case by US courts. It is believed that IM Metal was instrumental in fixing an 85 million Euro tender for the procurement of 210 fire engines for the Croatian Ministry of internal affairs.

The deal between the then German-American concern DaimlerChrysler and IM Metal was allegedly worth more than 3,2 million Euros in kickbacks, and Daimler confessed to bribing Croatian public officials with 4,7 million Euros. It is still unclear where the rest of the money went.

After the allegations first went public in April last year IM Metal quickly changed their name to Flammifer to avoid fallout.

The former Croatian ministers of finances, internal affairs and the economy also participated in the deal, but have denied involvement in any illegal activities.

Whether the arrests will affect production and how is currently unknown.