The USKOK anti-corruption office has rejected claims that it has suspended an investigation of former minister Gabrijela Zalac, who was arrested earlier on Wednesday, and her accomplices due to lack of evidence, stressing that the results of the investigation have been submitted to the European Public Prosecutor's Office in Croatia (EPPO).

Following an EPPO warrant relating to the scandal dubbed ‘Software,’ on Wednesday morning the police arrested former minister for Regional Development and EU Funds, Gabrijela Zalac, the director of the Central Finance and Contracting Agency (SAFU) Tomislav Petric, and two other suspects.

Zalac’s house in the Croatian town of Vinkovci was searched on Wednesday afternoon after which she was brought to Zagreb for questioning.

USKOK said that even earlier “during the investigation and collection of documents, several people were questioned and SAFU was requested to submit the results of ex-post controls of the public procurement for certain (software) programmes.” It added that no meritorious decision was made and the results of the investigation conducted were submitted to the EPPO.

The Telegram news website reported on Wednesday that USKOK had suspended its investigation “because the evidence collected did not indicate that Zalac had done anything unlawful.” Telegram recalled that already in the summer of 2019 it had found that the Ministry of Regional Development and EU Funds, which was then headed by Zalac, had paid HRK 13 million for software that in fact cost HRK 2.9 million.

Unlawful spending of European funds

Telegram further reported that after the article was published, and given that most of that money was from European funds, the European Anti-Fraud Office (OLAF) asked the website to submit all the documents it had, including correspondence between its reporter and the ministry.

The EPPO said on its website on Wednesday that in cooperation with the Croatian National Police Office for the Suppression of Corruption and Organised Crime (PNUSKOK) it “is conducting urgent evidence-collecting activities” related to four persons “who are suspected to have committed criminal offences at the Croatian Ministry of Regional Development and EU Funds and in Croatia’s Central Finance and Contracting Agency (SAFU), with regard to the public procurement procedures for purchasing an information system.”

“The European Public Prosecutor’s Office will, after questioning the suspects, make a decision on further actions in the case in question, and will inform the public thereof in due time. No further details will be released until then,” EPPO said on its website.

Police to file charges with European prosecutor

The Police Directorate said on Wednesday, without revealing any identities, that after the completion of the criminal investigation the police will file charges against the suspects with the European prosecutor.

The investigation is related to suspicious deals to prepare software for the Ministry of Regional Development and EU Funds during the time when Gabrijela Zalac led the ministry and awarded the contract to the Ampelos company.

Following instructions by the EPPO, a newly-formed prosecutorial body responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU, PNUSKOK conducted several searches at the ministry and collected documents related to the deal with Ampelos.