ZAGREB, 23 Feb 2022 - The Office for Suppression of Corruption and Organised Crime (USKOK) on Wednesday issued an indictment against former Knin mayor and state secretary Josipa Rimac of the HDZ party and another 26 suspects, including several former office-holders, on corruption and abuse of office charges.

The USKOK investigated this case after a scandal dubbed "wind parks" broke out, but the indictment, which was lodged with Zagreb County Court today, does not refer to the circumstances surrounding the wind parks case, but to alleged irregularities in the allocation of state aid to farmers and grants to businesses, unfair employment and state exams from 2017 to 2020.

Concerning the state aid allocation, former economy assistant minister Ana Mandac is one of the suspects, and her recent testimony resulted in Saturday's arrest of Minister Darko Horvat, who is implicated in the disbursement of grants to ineligible businesses in 2018 when he served as the economy minister.

With regards the favouring of applicants who were expected to pass the state exam to get employment in the state administration, Gabrijela Žalac, former minister for regional development and EU funds, and Ružica Njavro, former Agriculture Ministry chief of staff, are charged with those offences.

The former mayor of Gračac, Nataša Turbić of the Croatian Democratic Union (HDZ), and several business people are suspected of giving bribes to Rimac.

Rimac's lawyer, Lidija Horvat, told Hina that they had not yet officially received a copy of the indictment.

After the wind parks scandal broke out, Rimac was arrested in May 2020, and spent 124 days in pre-trial detention.

For more, check out our dedicated politics section.

ZAGREB, 23 Feb 2022 - Minister of Culture and Media Nina Obuljen Koržinek said on Wednesday that Croatia found itself in a situation that isn't regulated by the EU Solidarity Fund (ESF) by experiencing two major earthquakes in relatively the same region in one year.

Speaking on Croatian Radio regarding post-earthquake reconstruction, Obuljen Koržinek said that Croatia was hit by two separate earthquakes in 2020 in the midst of COVID, when intervention was made even more difficult.

She underscored that the European Commission inspected Croatia's intervention plans for Zagreb and for the Banovina region, where more than half the ESF was allocated, and accepted Croatia's arguments and allowed it to absorb the entire allocation.

"The majority of projects for Zagreb that have been agreed were agreed through the Ministry of Culture and Media. We are monitoring what is being done in the field and we will certainly spend the entire allocation", she said.

She added that this however, will only cover a minor share of what is required for reconstruction.

The ESF is earmarked exclusively for public buildings and infrastructure while the reconstruction of houses and blocks of flats will have to be covered from the state budget, she said.

First step in Banovina region were minor repairs to houses

Asked why Zagreb and Banovina aren't the biggest construction sites, she cited numerous reasons. In the case of Zagreb that involves larger, more complex buildings, she said, this involves public procurement procedures so that the financing of such projects is transparent.

She recalled that a decision was made regarding Banovina to first deal with minor repairs, so that as many people in temporary accommodation could return to their homes.

Public procurement procedures have been launched for the construction of houses and that process will now be accelerated, she added.

She also underscored that the timeframe for the reconstruction of houses depends on a lot of factors and owners too have an important role and there are a lot of problems with ownership rights.

For more, check out our dedicated politics section.

ZAGREB, 23 Feb 2022 - Attorney Anto Nobilo said on Tuesday that Deputy Prime Minister Boris Milošević hired him after the USKOK anti-corruption office accused him of incitement to abuse of office in the allocation of incentives to businesses.

Speaking to Hina, Nobilo said he was now waiting to see the case file so that he could start preparing a defence.

He said Milošević had not been questioned at USKOK nor summoned, and that he would not state his defence before seeing the case file.

Nobilo said Milošević was accused of incitement to abuse of office.

Speaking for RTL television earlier in the evening, he said that, judging by the decision to conduct an investigation, incitement was suspected but there was room for a defence.

"Milošević believes that he is not guilty," Nobilo said. "He advocated for the constituents who elected him and did not ask someone else to commit a crime."

Nobilo said Milošević should not appeal against the investigation, which is also looking into Darko Horvat, who was arrested on Saturday on suspicion of abuse of office, after which he was relieved of duty as construction minister at his own request.

"I suggested against it because there is reasonable doubt. USKOK embarked on a criminal procedure absolutely correctly upon getting a witness deposition. It believed the deposition and that, as a basis of reasonable doubt, is enough to launch an investigation," Nobilo said.

USKOK is investigating six persons. Horvat, who is in one month's custody, and his former aide Ana Mandac are accused of abuse of office.

Besides Milošević, USKOK is accusing of incitement to abuse of office, according to unconfirmed information, Regional Development and EU Funds Ministry state secretary Velimir Žunac, the head of the Administration for assisted areas, Katica Mišković, and former minister Tomislav Tolušić.

As the main suspect, Horvat was arrested after Mandac told USKOK that incentives were allocated to businesses that did not meet the criteria when Horvat served as economy minister. Horvat claims he was only signing documents brought to him by Mandac.

For more, check out our dedicated politics section.

ZAGREB, 20 Feb 2022 - Political analyst Žarko Puhovski said on Saturday that Minister Darko Horvat's arrest will not undermine the government if the matter remains within the limits of that minister, and Davor Gjenero believes that speculations of snap elections are dangerous amid unpredictable global developments.

Construction and State Assets Minister Darko Horvat was arrested on Saturday on the abuse of power charges, and upon his apprehension the minister dismissed the charges.

The Office for the Suppression of Corruption and Organised Crime (USKOK) on Saturday evening stated that based on a police report, it launched an investigation of two persons on suspicion of abuse of office, and that another four suspects in the case are accused of incitement to the offence.

USKOK did not reveal the identities of the six suspects, however, earlier in the day media outlets reported that the suspects are Construction Minister Darko Horvat, his former aide Ana Mandac, as well as Deputy Prime Minister Boris Milošević, the Regional Development Ministry's state secretary Velimir Žunac, the director of the administration for assisted areas, Katica Mišković, and former minister Tomislav Tolušić.

According to USKOK's statement, in his previous capacity as economy minister, Horvat is believed to have signed off on the disbursement of grants in the amount of HRK 2.6 million (€347,000) to some businesses that are ineligible for aid, between November 2018 to the end of 2018, at the urging of Tolušić, Milošević, Žunac and Mišković.

Upon his arrest, Horvat resigned. 

Commenting on the developments, the analyst Puhovski told Hina on Saturday evening that in the event that the case remained within the limits pertaining to Horvat, the cabinet led by Prime Minister Andrej Plenković would not be negatively affected by the scandal.

"The developments could even make things easier for PM Plenković, as in this way he got rid of the minister with the poorest performance", said the pundit.

"However, if the whole case expands to include Deputy Prime Minister Boris Milošević, all this will grow into a serious issue both for the government and for the ruling coalition. In such scenario, it is possible to have discussions on early elections, however I do not believe that we will have them soon," said this analyst.

Puhovski agrees with Plenković that the gravity of the arrest of a minister required the appearance of the State Attorney General in the public to give further explanations.

Upon Horvat's arrest, Plenković held an impromptu news conference in which he said, among other things, that he expected the State Attorney's Office (DORH) to explain the urgency of the actions taken.

However, DORH said later that it and the attorney general would not comment on the Prime Minister call on DORH, and that "the competent state attorney's office and the USKOK anti-corruption office are taking action in line with the law."

Puhovski said that this was the second time in the present-day Croatia that an incumbent minister was arrested, and he believes that it is unfair from DORH to give only a press release claiming that prosecutors are doing their job in line with laws and that they will not give any explanations to anybody.

"They should have informed the general public what this is about, as the arrest concerns a minister," said Puhovski.

One pundit for early election, another believes it would be dangerous in current circumstances

On the other hand pundit Anđelko Milardović criticises PM Plenković for making statements which, he says, interfere in the work of DORH.

This pundit slams Plenković for "authoritarian tendencies that also smack of the dictatorial way of governance."

Milardović also said that Horvat should have been dismissed instantly, and that the Prime Minister should also have resigned.

While Milardović believes that the ruling majority should dissolve itself, another political analyst Gjenero told Hina that calling for snap elections in the current circumstances of unpredictable global developments, is dangerous.

Gjenero finds it odd that the arrest of Horvat and this case implicating his former aide Mandac was not a follow-up to "the wind park" case in which Mandac was also a suspect, but that this is being regarded as an entirely different matter.

This analyst also points out that the latest allegations concern the coalition between the ruling Croatian Democratic Union (HDZ) and the biggest party representing an ethnic minority, the Independent Democratic Serb Party (SDSS). 

"This is always a politically sensitive situation, I am very reserved about what that can be actually," he said, adding that the affair could give ammunition to those who claim that the HDZ-SDSS coalition is an outcome of a trade-off.

"If there are any elements hinting at corruption, those involved must immediately step down, however I find this whole case an odd precedent", he added.

More on this story from yesterday:

Minister Horvat Denies Guilt, Anti-Corruption Office Demands Remand in Custody

State Attorney's Office says Won't Comment on PM's Statement After Minister's Arrest

Grbin: Election Only Salvation for Croatia

Čačić: Horvat Has to Go, Reformists' Support Depends on Police Operation's Results

Croatian Prime Minister Blames USKOK for Ruining Croatia's Spectacular Week

PM Calls on Prosecutors to Explain Case Implicating Minister Horvat 

Police Probe is Targeting Horvat and Milošević, Aladrović not Implicated

ZAGREB, 16 Feb (Hina) - Social Democratic Party (SDP) leader Peđa Grbin said on Wednesday that he did not breach any law for receiving a Living Away from Home Allowance (LAFHA), and rejected the claim that all politicians are the same when it comes to utilising perks.

"I am being accused today of using something that I have a right to by law. This is not an issue of whether I violated the law but whether my conduct was ethical and moral," Grbin said in the national parliament, reacting to an article in the daily press that he has been paid LAFHA as a lawmaker because his hometown is Pula yet he is living in Zagreb with his wife and child.

Grbin rejected the claim that all politicians are the same, saying that there are differences between him and for example, Defence Minister Mario Banožić or the Prime Minister's chief of staff Zvonimir Frka Petešić, with regards to violating the law.

Grbin explained that LAFHA is not related to family status or where one's family lives, but where you are from. He believes that MPs who are not from Zagreb should not be called out for these matters, because the Sabor cannot solely represent Zagreb and its inhabitants.

"I do not wish to renounce my hometown. Pula is my town while Zagreb is where I am performing my political duties," said Grbin.

Asked where he lives precisely, Grbin said he too would like to know because he is neither in Zagreb nor in Pula, but his work takes him everywhere.

He explained that his child is still not going to kindergarten because he is only eight months old and spends most of the time with his mother in Pula who is on maternity leave. Grbin added that he decided this year that his child would go to kindergarten in Zagreb and then asked for LAFHA to be ceased. "Not because I considered that I was not entitled to it, but rather because I thought it would not be fair to be paid that allowance," said Grbin.

Wednesday's edition of the Jutarnji List daily claimed that Social Democratic Party MPs Arsen Bauk and Peđa Grbin have mastered the art of utilising all the perks available for national legislator. Even though both have lived in Zagreb for more than 10 years, have their families with them in Zagreb, partners that are employed in Zagreb and children were born in Zagreb, neither of them have changed their registered residency. Bauk is still registered on Brač Island and Grbin in Pula. Until a month ago, Grbin was even paid LAFHA which he has now renounced so he can enrol his child in a kindergarten in Zagreb.

For more, check out our politics section.

ZAGREB, 16 Feb 2022 - The Državne Nekretnine state property management company on Tuesday said that the renovation of the state-owned basement used by Prime Minister's chief-of-staff Zvonimir Frka-Petešić, had been conducted in line with law and regulations.

"The renovation of the pertaining basement space in Zagreb was planned within the company's regular business activities and the project was also made public within the company's public procurement operations' plan for 2021", Državne Nekretnine stated in a press release in response to media reports that that the 83-square-metre large basement was renovated and refurbished at a price of 417,000 kuna.

"During the advertised public procurement tender for this project, a total of six bids were submitted, and an independent task force selected the most favourable bid", Državne Nekretnine said, adding that the most favourable bid was HRK 333,707.

The renovation was conducted to keep the state-owned property in a good state of repair, it emphasized.

Asked about the renovation of the basement where his chief-of-staff Frka-Petešić keeps his books, Prime Minister Andrej Plenković said on Tuesday that the Državne Nekretnine state property management company would explain everything.

"That has nothing to do with him. This... shameful, orchestrated lynching campaign that has been going on against Frka-Petešić for a month is one of the more stupid, irritating and mean things in the media and internet sphere," said Plenković.

For more, check out our politics section.

ZAGREB, 16 Feb 2022 - Social Democratic Party MPs Arsen Bauk and Peđa Grbin have mastered the art of utilising all perks available for legislators, Wednesday's edition of the Jutarnji List daily reported in an article.

Although both MPs have lived in Zagreb for more than 10 years, including have their families living with them, partners that are employed in Zagreb and children born in Zagreb, neither of them has changed their residency. Bauk is still registered on Brač Island, while Grbin in the City of Pula.

The Sabor is paying their rent in Zagreb and both of them are paid tens of thousands of kuna for travel expenses to and from Brač and Pula. Until a month ago, Grbin was even paid a "living away from home allowance" (LAFHA), which he has now renounced so he can enrol his child in a kindergarten in Zagreb.

In the fifteen years that Bauk has been a member of parliament and office-holder, he has managed to deposit about HRK 5.5 million kuna in his bank account and about 40% of his income or HRK 627,000 (€82,919) is deposited in savings. His savings amount to just a little more than the budget paid to cover Bauk's rental costs.

Despite the fact that his wife is a Zagreb local and his child was born in Zagreb about two years ago, Bauk claims that he is living at the government's expense in Zagreb only temporarily.

Bauk admits that he does not receive LAFHA in the amount of 1,000 per month. telling the daily that it would be 'stupid' to receive that perk as he did not live separately from his partner.

However, Bauk doesn't consider it to be stupid that his party leader, Grbin, is in a similar situation and has lived in Zagreb for years and yet taxpayers are not only paying for his rent in Zagreb, but also for each time he travels to his hometown to Pula.

Explaining his entitlement to LAFHA, Grbin said that the parliament decided that that allowance is paid to MPs who do not live in Zagreb, but come from other cities and it is an allowance paid to MPs because of a requirement to live away from their usual place of residence to do their job.

He admitted however that in order to "enrol our child in kindergarten, I have requested the Sabor to cease paying me that allowance and as of 1 January, I am no longer receiving it," said Grbin.

For more, check out our politics section.

ZAGREB, 16 Feb 2022 - Croatian National Bank's (HNB) Vice Governor Roman Šubić on Tuesday confirmed media reports about his purchase of a house in Zagreb below the market price, explaining that the advertisement of the sale of the property was made public and that transaction was in line with law.

He also underscored that the purchase of that villa was not in contravention of the rules on conflict of interest prevention.

Media outlets have reported that in late 2021, Šubić bought a 1,077-square-metre large villa in Zagreb's residential area of Gornji Stenjevec from a debt collection agency at the price of €230 per square metre, which was far below market price. Thus, he paid approximately €250,000, that is 1.9 million kuna, for that property, and he stated in his declaration of assets that the house's value is HRK 3.05 million.

Vice Governor Šubić coordinates and manages the Statistics Area and the Credit Institutions Resolution Office.

Following inquiries from HINA about a possible conflict of interest in this case, the central bank responded on Tuesday that Šubić is not authorised to sign HNB opinions on whether the planned sale to be conducted by a credit institution is in compliance with the existing regulations on the transactions of credit institutions. Therefore, he had not signed an opinion on the sale of the Gornji Stenjevec house, which media outlets have been reporting in recent days. 

The HNB also underscores that the scope of activities within the remit of the Credit Institutions Resolution Office have nothing in common with the activities of these transactions, specifically the sales and purchases between credit institutions and debt collection agencies. The HNB explains that it means that data on individual credit obligations of consumers were not available to Vice Governor Šubić.

The HNB elaborates that February 2021 was when Šubić got the information about the sale of that debt pertaining to the property via a digital classified advertisement on real estate, and also via the public auctions conducted by a municipal court in Zagreb. This means that there was public access to the pertaining information available.

Thus, all the interested parties had an opportunity to express their interest in buying the property.

The central bank also says that the purchase and sale agreement in this case was concluded in compliance wit the existing regulations.

Therefore, the purchase of that property cannot be viewed as an illegal transaction or a conflict of interest case.

The HNB also says that the below-the-market price was a result of the failure to sell the property at the two previous public auctions.

For more on politics, follow TCN's dedicated page.

ZAGREB, 15 Feb 2022 - Prime Minister and HDZ party leader Andrej Plenković said on Tuesday that the government's set of measures designed to cushion the impact of rising energy prices was comprehensive and would be good both for households and the business sector, and that they would be presented at 10 am on Wednesday.

"The measures... will alleviate, as much as possible, the impact of price growth expected as of 1 April," Plenković told reporters after a session of the HDZ Presidency and National Council but he would not reveal any details.

He would not say if it was true, as reported by some media outlets, that VAT on gas would be lowered while VAT on electricity would not.

Asked if Economy Minister Tomislav Ćorić still enjoyed his trust following accusations by Ćorić's former assistant, a suspect in an investigation by the USKOK anti-corruption agency, Plenković said that Ćorić had already given a statement on that topic.

"The fragments of investigations that are being leaked are so small that they do not deserve any comment. Especially not mine," Plenković said, adding that the investigation was under way and that he did not want to comment on statements given in investigations.

Ćorić said earlier today that in 2019, as minister of environmental protection and energy, he had in no way favoured investors in the Krš-Pađene wind park who are under investigation by the USKOK anti-corruption office, of which he has been accused by his former assistant Domagoj Validžić.

Plenković said that he had never been contacted with regard to that topic, and that the questions one should ask are which term of government this incident occured under, and how the company in question arrived in Croatia.

"I hope the State Attorney General's Office is interested in that as well," he said. 

Asked about the renovation of the basement where his chief-of-staff Zvonimir Frka-Petešić keeps his books, Plenković said that the Državne Nekretnine state property management company would explain everything.

"That has nothing to do with him. This... shameful, orchestrated lynching campaign that has been going on against Frka-Petešić for a month is one of the more stupid, irritating and mean things in the media and internet sphere," said Plenković.

With regard to the Constitutional Court's decision to reject a motion by 35 opposition MPs and 28 other applicants who claimed that the introduction of the COVID-19 certificate mandate in the public sector had been neither constitutional nor lawful, Plenković recalled that Croatia probably had had the least strict COVID-19 rules.

"And yet you have petty politicians who even want to organise a referendum, even though we have enabled social activities, work, transport and education, a great tourist season, saved jobs, paid wages to 700,000 people in the private sector, saved 120,000 businesses, while GDP is expected to grow by more than 10% this year," Plenković said, noting that there was nothing surprising about the Constitutional Court's decision.

Answering a reporter's question, Plenković said that at today's meeting of the ruling coalition, the leader of the People's Party - Reformists, Radimir Čačić, had apologised for his statement about Defence Minister Mario Banožić.

"I told him that a partner should act like a partner. You act like the Opposition if you are the Opposition," said the PM.

Speaking in an interview with N1, Čačić said that as far as he was concerned, Banožić could leave tomorrow. "He causes harm to himself with the way he communicates, not to mention others. As far as I'm concerned, Banožić can leave tomorrow," the junior partner in the ruling coalition said.

Plenković said that Banožić was in charge of a HRK 7.2 billion budget and that he signed contracts for the procurement of the Rafale fighter jets and the Bradley fighting vehicles.

"Not many ministers have something like that in their careers. Only I decide about (whether a minister leaves), nobody else," he said.

For more on politics, follow TCN's dedicated page.

ZAGREB, 30 Jan 2022 - The Croatian Parliament's Committee on the Constitution and Rules of Procedure have decided on the distribution of HRK 54.9 million (€7.32m) for the work of political parties and independent members of Parliament, as provided for in this year's budget.

The money will be divided according to election results, and the parties will receive HRK 352,351 per male MP and 387,587 per female MP due to their underrepresentation.

The largest amount of HRK 22.4 million will be distributed to the Croatian Democratic Union (HDZ), which has 45 male and 16 female lawmakers in the present 151-seat parliament. 

The Social Democratic Party (SDP) has 19 male and 15 female MPs and will receive HRK 12.5 million, while the Homeland Movement (DP) will get HRK 3.9 million for eight male and three female MPs. This is despite the fact that 18 lawmakers who were expelled from the SDP have since formed the Social Democrats group, while the DP has been left without their founder, Miroslav Škoro.

Bridge, with seven male MPs and one female, will receive HRK 2.8 million. HRK 1.8 million will go to the We Can! platform (3 male and 2 female MPs), HRK 1.1 million to the Independent Democratic Serb Party (1 male and 2 female MPs), and HRK 1.09 million to the Istrian Democratic Party (2 male and 1 female MPs).

The Croatian Social Liberal Party, Croatian Peasant Party and Croatian Conservative Party have two MPs each and will receive HRK 704,000 per party.

The New Left, the Workers Front, the Civic and Liberal Alliance (GLAS), the Party with a First and Last Name, Centre, and the Reformists each have one female MP and will each receive HRK 387,587. The same amount will also go to independent Ermina Lekaj Prljaskaj.

The HRK 54.9 million will be paid out quarterly in equal amounts into the bank accounts of the political parties and independent MPs.

(€1 = HRK 7.5)

For more on politics in Croatia, follow TCN's dedicated politics section.