At today's arraignment, Sanader, Macek and HDZ representative Damir Sesvecan pleaded not guilty, while the HDZ's former treasurer Mladen Barisic and accountant Branka Pavosevic, the owner of the Fimi Media marketing agency, Nevenka Jurak, and the counsel defending her company, Marica Ivankovic, pleaded guilty.

"The indictment is fabricated and I plead not guilty to every count," said Sanader, who claimed a few days ago that this was a politically motivated trial.

The indictment contends that from late 2003 to July 2009 Sanader linked the other defendants with the intention to illegally finance the then ruling HDZ and acquire personal gain. Initially, the group comprised Barisic, Macek and Pavosevic. Jurak joined them in 2004 at Barisic's suggestion. She hired Anita Loncar-Papes and Bojan Dimic to siphon money from her company Fimi Media.

Loncar-Papes and Dimic have reached plea agreements with the prosecution.

The indictment alleges that Sanader, personally and through Barisic, asked the heads of some state bodies, institutions and companies to hire Fimi Media for the procurement of goods and services, regardless of the Public Procurement Act and actual needs.

Sanader and Jurak allegedly agreed that she would give part of the money siphoned through her company to Barisic and he to Sanader. Part of this money, at Sanader's orders, was used to make payments for the HDZ.

Pavosevic, the HDZ accountant, did not record in the party's books the money siphoned from state institutions but used it to pay the party's costs. She received such orders directly from Sanader or through Macek. The indictment alleges that Barisic and Macek made some "considerably payments" from the HDZ's slush fund as well.

In her opening statement, prosecutor Zeljka Mostecek highlighted a meeting at the government on 4 April 2007 at which the heads of public companies which were supposed to do business through Fimi Media were invited.

One of the goals of the meeting was to establish Barisic and Macek as people whom Sanader trusted who were supposed to do business with those public companies, she said.

Sanader's counsel Cedo Prodanovic said he would deliver his opening statement after the prosecution introduced evidence. Judge Ivana Cacic said he was stalling. Prodanovic said the decision was strategic because of the course of the proceedings and the unexpected plea deals.

Macek's defence cited the same reason for not making an opening statement.