Former Minister for Regional Development and EU Funds Gabrijela Zalac has been released from investigative custody after all witnesses in the so-called Software case have been interviewed and there is no risk of her interfering with witnesses, a Zagreb County Court investigating judge ruled on Monday.

The other suspects, former Central Finance and Contracting Agency (SAFU) director Tomislav Petric and IT company owners Mladen Simunac and Marko Jukic, are expected to be released later this week after all witnesses have been questioned, Hina learned from sources close to the investigation.

On 10 December, the investigating judge extended the detention of Zalac and the other suspects for a month citing a risk of witness tampering. They were arrested on 10 November on the orders of the European Public Prosecutor’s Office (EPPO) in Zagreb, which demanded that they be remanded in custody for two months so that they could question 17-18 witnesses.

The investigation was launched by the EPPO following a criminal report filed by the National Police Office for the Suppression of Corruption and Organised Crime. Zalac, Petric, Simunac and Jukic are suspected of defrauding the European Union and Croatia of €1.8 million.

Zalac is suspected of fixing the public procurement of an information system for strategic planning and development management for the companies owned by Simunic and Jukic. The suspects concluded a harmful deal under which the price of the IT system was increased several times over to HRK 13.4 million (€1.8m) to the detriment of the financial interests of the EU and Croatia.

Zalac is suspected of abuse of office and official authority and of influence peddling, Petric is suspected of abuse of office and official authority, Simunac is suspected of inciting the abuse of office and official authority, and Jukic is suspected of aiding and abetting the abuse of office and official authority.