The case was dubbed Planinska after Planinska Street in Zagreb where the office building is located. Sanader recently dismissed the indictment as politically motivated.

Although their lawyers earlier announced that they would enter plea bargains, the other persons accused in this case, Stjepan Fiolic, a former HDZ parliamentary deputy and owner of a meat-processing company, and Petar Cobankovic, former minister and HDZ official, today did not reach agreements with the Office for the Suppression of Corruption and Organised Crime (USKOK).

Fiolic's lawyer Ante Madunic told the media just before today's hearing that his client would admit to all allegations in the indictment.

"We accept all allegations in the indictment, because USKOK compiled the indictment based on Fiolic's confession," lawyer Madunic said.

Sanader's lawyer Jadranka Slokovic said that during the trial they would challenge the confessions and prove that the confessions of co-defendants were of relative significance.

USKOK charged Sanader, former Minister of Regional Development, Forestry and Water Management Petar Cobankovic and Fiolic of irregularities in the sale of the office building in Planinska Street in Zagreb in 2009 at a price considered to have been considerably higher than a market price of such a building.

USKOK claims that in this plan, Fiolic was supported by Sanader, Cobankovic and a company owned by Mladen Mlinarevic, which appraised the building and its surrounding at HRK 79.9 million, twice as much as its real worth.

Sanader is believed to have pushed this plan at meetings of his inner cabinet, whereby HRK 26.4 million was embezzled from the state budget.

Upon his arrest by the police this April, Fiolic admitted that he had sold the building at an overinflated price and retained all the money. Later, however, he changed his testimony to accuse Sanader of receiving some HRK 17 million kuna from that sum.