Ivan Kolar, a member of the presidency of the Croatian Peasant Party (HSS), a junior partner in the ruling coalition, was arrested in his house in Molve, northern Croatia, on Tuesday morning on suspicion of financial wrongdoings and embezzlement of funds from the budget of the municipality of Molve.
The spokesman for the interior ministry, Krunoslav Borovec, confirmed Kolar's apprehension.
According to unofficial information, Kolar, a former long-standing HSS parliamentarian and head of the Molve municipality, is suspected of HRK 2 million embezzlement.
He was at the helm of that municipality until the last local election when Stjepan Fosic of the Croatian Democratic Union (HDZ) won the polls.
Later in the day at a news conference in the eastern town of Djakovo, HSS leader Josip Friscic said the ruling coalition agreed on zero tolerance to abuse of office, corruption and crime.
He announced that the presidency would likely suspend Kolar next week.