The Office for Suppression of Corruption and Organised Crime (USKOK) has launched an investigation against the mayor of Smokvica town on the southern Adriatic island of Korcula, Kuzma Tomasic (Social Democrats), and the entrepreneur Ivica Kriletic on suspicion of embezzling EU funds for a museum.

Croatian law enforcement authorities did not disclose the identities of the two suspects on Tuesday, who are charged with abuse of office and financial misconduct committed since 2017 over plans to build a local museum of silver and gold.

According to USKOK, the Split-based company owned by Kriletic obtained €292,000 in this way, while they embezzled €111,200 from Dubrovnik-Neretva County and the Smokvica municipality’s budget suffered €292,000 in damages.

An investigating judge demanded pre-trial detention for the two suspects, who were arrested on Tuesday morning.