Investigating judge Kresimir Devcic remanded Despot in custody for fear that he might tamper with witnesses. Thirty-four witnesses are to be questioned in the investigation into five criminal acts of abuse of authority and bribe-taking.

Judge Devcic turned down USKOK's request that Despot be remanded in custody also due to the risk that he could repeat the crime he is accused of, considering the fact that he no longer works for HEP or any other public company, the Zagreb County Court reported on its web site.

USKOK suspects 54-year-old Despot of having solicited, in his capacity as the member of the HEP Management Board in charge of production and chairman of the HEP-Proizvodnja Supervisory Board, in the period from March 2006 to June 2007, bribes from representatives of a number of companies that were doing business with the national power supplier, amounting from 5 to 10 percent of the agreed deals whose value ranged from HRK 6.9 million to HRK 74.7 million.

Despot was arrested early on Friday morning in his home in Zagreb, which the police searched for evidence.

He chose not to answer questions from USKOK investigators today.

Despot is also known as the son-in-law of Mladen Barisic, former head of the Customs Administration and treasurer of the ruling HDZ party. Barisic was arrested in a corruption scandal involving the Fimi Media marketing agency.

After Barisic's arrest, the police searched Despot's apartment, discovering more than HRK 2 million in it.

After that, Despot was frequently mentioned by the media as the key person taking commission for fixing deals with HEP.

Former HEP Management Board chairman Ivan Mravak reportedly told USKOK investigators that in line with political instructions, Despot's 107 square metre flat first had to be bought by HEP so that Despot, as a HEP employee, could buy it off under privileged conditions.

The flat is the reason why the Office of the Chief State Prosecutor in late March requested an investigation into Despot and six other HEP officials.