Jarnjak said that once a telephone bill amounting to HRK120,000 arrived in the party headquarters. He recalled that party treasury officer told him then that there were many official phones and that the party was also paying for Sanader's daughter Petra's phone bills.

"In a few days, I received a call from Sanader who asked what seemed to be the problem. I told him that his expenses were too high and that we won't be able to keep up, and his said 'Leave it, don't worry about it'," Jarnjak said at the witness stand.

The witness also said his driver Vinko Lacic had warned him that payments were being made to some people in the party avoiding the party's bank account.

Jarnjak said he asked accountant Branka Pavosevic about that and that she told him that Sanader had been giving her a list of names with the amounts that were to be paid to those recipients and that the money was provided by Mladen Barisic.

Jarnjak said he had heard about some payments to several media organisations which had not been done through the HDZ bank account. Jarnjak said there had been a mention of TV Z1 and Osijek Television.

Jarnjak also said that the HDZ presidency had not adopted the final financial statement for 2005 and 2006.

He explained that financial decisions were made by the party presidency, but only if the party president added it on the agenda. Otherwise the decision could have been made only by the party president.

The witness said that Sanader had asked that party presidency sessions no longer be recorded, adding that Suncana Glavak and Josip Saric occasionally kept minutes.

The presiding judge has set three days for Jarnjak's testimony in the Fimi Media case in which Sanader and four other persons are charged with siphoning around 70 million kuna from state agencies and companies through the Fimi Media private marketing agency and pouring the money into the HDZ slush fund.