On Wednesday, the European Public Prosecutor's Office (EPPO) launched an investigation against five people arrested for alleged embezzlement of EU funds in a project to build a waste sorting plant in the Croatian port city of Rijeka.

The EPPO has requested pretrial detention for four of the suspects with the exception of businessman Djuro Horvat (80) due to his age and health condition.

A Zagreb County Court investigative judge will decide on pretrial detention for the former head of the Rijeka Municipal Department, Irena Milicevic, her associate Eddy Ropac, the director of the Rijeka Cistoca utility company, Jasna Kukuljan, and Darko Zagar from Cakovec.

The EPPO’s investigation also includes Horvat’s Tehnix company, which allegedly illegally gained over half a million euros to the detriment of the EU Cohesion Fund and the Croatian budget.

Without revealing the suspects’ identities, the EPPO also reported that it has proposed that the company’s account be frozen and a temporary measure to secure the confiscation of property be applied.

After the arrests and searches that began on Tuesday morning in Rijeka and Medjimurje, the EPPO reported that they were investigating possible abuse of position and authority related to public procurement procedures for the construction of a waste sorting plant in Mihaceva Draga, near the northern coastal town of Rijeka.