Investigating judge and Zagreb County Court spokesman Kresimir Devcic told reporters the Supreme Court turned down the appeals filed against last week's decision by a panel of judges to remand Sanader in investigative custody, while simultaneously exchanging it with a HRK 12.4 million bail, the confiscation of his passport and the obligation that he report to the investigating judge the first Monday of every month.

The anti-corruption office USKOK appealed the decision arguing the bail was too low, since Sanader has been charged with defrauding the state of more than HRK 100 million in a number of cases. Defence counsel appealed the decision because the panel of judges had not acted on a Constitutional Court decision whereby Sanader was to have been released by 7am on December 12 at the latest.

"Both appeals have been turned down, which means that the decision by the panel of judges has become final," Devcic said, adding that the decision would be forwarded tomorrow to the relevant municipal courts to register mortgage on the real estate offered for bail.

After registration, Sanader will be summoned to court to pledge that he will not run away and that he will respond to summonses, after which he will be released, said Devcic.

One of Sanader's attorneys, Jadranka Slokovic, said she was pleased with the Supreme Court's decision and that Sanader could be released as early as tomorrow. She said the defence had already delivered to the court a certificate on the payment of EUR 300,000 in cash for bail.

Sanader's friends Luka Bebic, Jerko Rosin and Mario Zubovic and his wife Mirjana have granted a lien on their real estate. According to the court, the bail amount is no longer HRK 12.4 million but HRK 200,000 higher. Rosin has sold a flat in Split and bought a more expensive one in Zagreb as guarantee that Sanader will not flee.

Outgoing Parliament Speaker Bebic mortgaged his house in Komarna in south Croatia, Zubovic a flat in Zagreb and Mirjana Sanader a third of their house in Zagreb. Former footballer Tomo Sokota and the director of the Lokomotiva football club, Bozidar Sikic, have each given EUR 150,000 for bail.

Sanader has been behind bars for a year. He was arrested by Austrian police on December 10, 2010, extradited to Croatia on July 18 and he has been at Remetinec since.

He is on trial for war profiteering, namely for taking HRK 3.6 million in commission from Austria's Hypo bank and EUR 10 million in bribes to give management rights in the Croatian oil company INA to Hungary's MOL.

Sanader has recently been indicted, together with his former party, the HDZ, in the Fimi Media case, which is why USKOK asked that he be remanded in custody, considering him still a flight risk. This indictment has not been upheld yet.