Ott was detained in Zagreb on Tuesday for questioning on suspicion of alleged crimes relating to the Suncani Hvar hotel company, Orco's joint venture with the Croatian state.

According to AFP, he was approached by six police officers in Zagreb. "They told me I would be arrested unless I accompanied them," Ott told AFP.

Ott said that during a five-hour interview he had to answer charges of embezzlement by overpaying some suppliers for their services.

"The police told me they were acting on an anonymous complaint. That seems typical of a disgruntled employee making false accusations against the present owners," Ott said.

"Why would have we invested 65 million euros to earn two? That makes no sense," Ott said.

On Tuesday, the police in the southern coastal city of Split pressed charges against six people on suspicion of embezzling HRK 16 million from Suncani Hvar, saying that they had breached business regulations from 2005 to 2008 and incurred unnecessary costs in order to acquire unlawful gain for companies within Orco Property Group.

Orco Group, based in Luxembourg, is the biggest shareholder in Suncani Hvar with a 55.5 per cent stake, while the Croatian Privatisation Fund (HFP) has a 31.7 per cent stake. Suncani Hvar, which is based on the southern island of Hvar, employs 356 people and faces accumulated losses of some HRK 400 million.