The Office for the Suppression of Corruption and Organised Crime (USKOK) has launched an investigation into Varazdin Mayor and independent MP Ivan Cehok and three other people on suspicion of defrauding the City of Varazdin of HRK 29 million through various land deals, the State Prosecutor's Office said on its website on Thursday, without naming the suspects.
An investigation has also been launched into two companies, which have also not been identified. According to unofficial reports, they are T7 Grupa and T7 Vis, which were allegedly favoured by Cehok, whom parliament stripped of immunity from prosecution today.
Cehok and the others are suspected of conspiring from May 2008 to acquire illegal gain at the expense of the northern city of Varazdin. Apart from conspiracy, they are also suspected of abuse of office and inciting to abuse of office.
According to USKOK, Cehok favoured those companies in the landing of contracts with the City of Varazdin a number of times, in agreement with their chairman of the board. A member of the board, in agreement with the chairman, asked construction experts to appraise real estate which the companies sold and exchanged with the City of Varazdin at a value considerably higher than on the market. After that, Cehok made sure that relevant city bodies approved the appraisals and that contracts on the sale and exchange of land be signed with those companies. The companies illegally earned at least HRK 29 million at the city's expense.
This afternoon, police escorted Cehok to Zagreb. According to unofficial reports, the police also took into custody Davor Patafta, chairman of the board and owner of T7 Grupa and T7 Vis, board member Narcisa Huljec and another person.
