The European Public Prosecutor's Office (EPPO) confirmed on Thursday that three people had been arrested on suspicion of bribery related to a public tender for a wastewater treatment plant in the northern town of Varazdin.

Local media as well as the state news agency Hina cited what they describe as “unofficial information” to report that the three people arrested include a former Varazdin city councilor and businessman, Robert Gotic, and the former CEO of Varazdin’s public utility company Varkom, Zeljko Bunic.

Hina did not report who the third person was.

EPPO added that they suspect that the three persons involved had participated in giving and taking bribes in order to rig a EU-funded tender for a project to upgrade the local wastewater treatment plant. The project, co-funded by the EU, was worth 178 million kuna (€23.7 million).

Hina did not say when the tender was published nor what was the amount covered by the EU.

Croatian police had previously reported that “evidence collecting activities” related to the case were under way in Varazdin, in Zagreb, in Istria and in the Vukovar-Srijem County. Since Thursday morning, police officers have been searching the homes and other premises of the suspects, who will then be taken to the EPPO for questioning. If the prosecutors then ask for pre-trial detention for the arrested, that will be decided by the investigating judge.