OPERATION SPICE

Two more suspects in Podravka case in custody

20.01.2010 u 07:37

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Darko Korosec, head of Podravka's supply and development department and businessman Nevio Prlog, a subcontractor of the Koprivnica-based food company and a close friend of former deputy-PM and Minister of Economy Damir Polancec, who stepped down after white-collar scandals rocked that company last autumn, were remanded in custody for a month because of the risk of tampering with witnesses

They are suspected of bribery, together with another former Podravka executive Zdravko Sestak, who is already behind bars.

Earlier today, the two were questioned by investigators from the national anti-corruption agency USKOK about their involvement in the alleged financial wrongdoings in Podravka.

The police and USKOK suspect that Prlog, aged 38, won Podravka's calls to tender in collusion with the other two, in return financing Korosec's and Sestak's construction works on their private property.

Korosec, aged 54, is suspected of collecting fictitious bids from third companies which offered significantly higher prices than the real market prices, promising those companies they would be hired as subcontractors. Korosec is suspected of making more than HRK 2 million from the difference between the contracted deals and the amount paid out to subcontractors.

The Police Directorate today confirmed that as part of its anti-graft operation dubbed "Manager" it discovered new illegal activities and reported them to USKOK, suspecting Sestak, former member of the Podravka management Board Josip Pavlovic and the director of the Split-based SMS company Srdjan Mladinic of those crimes.

Sestak and Kraljevic are suspected of defrauding Podravka of over HRK 12 million.