The Mayor of Varazdin, Ivan Cehok, the owner of the companies T7 Grupa and T7 Vis, Davor Patafta, and a member of the T7 Grupa Board, Narcisa Huljev, have been remanded in investigative custody for 30 days, an investigative judge of the Zagreb County Court ruled on Friday.
The three are suspected of fraud in the purchase and sale of real estate, whereby they defrauded the City of Varazdin of 29 million kuna. They were detained because of the risk of repeating the crime they are suspected of and the risk of influencing the witnesses, investigative judge Jadranka Mandusic told reporters.
As part of the investigation launched by the national anti-corruption office USKOK, about 40 witnesses and a construction expert witness will be heard.
USKOK says that as of May 2008, the suspects conspired to acquire illegal financial gain at the expense of the City of Varazdin. Cehok allegedly abused his mayoral powers to favour Patafta's firms in deals with the City. Patafta sold plots of land to the City at much higher prices than their market value thanks to the assistance of a court expert.
Cehok, an independent member of Parliament, was arrested on Friday after Parliament lifted his immunity from prosecution. He said before his arrest that he had not influenced decisions by the City Council on the sale or exchange of land.
