The Office for the Suppression of Corruption and Organised Crime (USKOK) has indicted former Economy Minister Damir Polancec and seven former executives and business partners of the Podravka food company from Koprivnica for embezzling a minimum HRK 400 million (55 million euros) of company funds between 2005 and October 2009.
USKOK filed the indictment at the Zagreb County Court, accusing the eight men of conspiracy, abuse of office, aiding and abetting in and inciting the commission of said abuse, and unlawful brokering.
A statement released on USKOK's website on Thursday gives only the initials of the accused, but the media have learned that they are former Economy Minister Damir Polancec, former Podravka executives Darko Marinac, Zdravko Sestak, Josip Pavlovic and Sasa Romac, the owner and director of the Split-based company SMS, Srdjan Mladinic, the co-owner of the Varazdin-based company Fima Grupa, Milan Horvat, and attorney Zoran Markovic.
At the time relevant to the indictment, Polancec was the deputy prime minister in charge of the economy, the minister of the economy, labour and entrepreneurship, and the chairman of the Croatian Privatisation Fund steering board which decides on the sale of the state's 26 per cent stake in Podravka.
He was charged with linking, together with Marinac and Horvat, the other defendants so that they could acquire a majority stake in Podravka.
This case has been publicly dubbed Spice.
