Croatian ex-PM Ivo Sanader charged with corruption

Croatian ex-PM Ivo Sanader charged with corruption

2011-09-01 05:17:09 GMT+7 (ICT)

ZAGREB (BNO NEWS) -- Croatian authorities indicted former Prime Minister Ivo Sanader with graft on Wednesday, accusing him of taking bribes from Austrian bank Hypo in exchange for facilitating loans to Croatia, officials said.

Sanader is accused of receiving illegal payments of 3.6 million kuna ($690,000) from Austria's Hypo Alpe Adria banking group between 1994 and 1995, while he served as deputy Minister of Foreign Affairs in the Croatian Democratic Union government, the Prosecutor General said.

In exchange for the payments, the Croatian government received a loan of 140 million Austrian schillings ($14.7 million) from the Hypo bank for the construction of an embassy.

This is the first indictment against the ex-premier who is also being investigated for corruption and abuse of power in six different cases involving state companies and Croatian refiner INA Industrija Nafte, which is owned by the Hungarian oil firm MOL.

Sanader, who was extradited from Austria in July after being indicted by Croatian authorities in December 2010, has denied charges involving the Hypo Bank as well as those concerning the Hungarian oil company.

Sanader served as Croatian prime minister from 2003 until 2009, when he abruptly resigned his post while giving no explanations.

The former prime minister is the most high-profile figure arrested in Croatia's recent anti-corruption drive carried out by the current administration to secure the country's membership in the European Union (EU).

The country has concluded talks with the European bloc and is set to join in July 2013. However, a monitoring mechanism has been put in place to ensure Croatia pursues its campaign against corruption, which flourished across the region during the 1990s Yugoslav wars.

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