"The court was governed by the fact that proceedings are under way against Ivo Sanader not only in this case but in several others as well, and in those cases illegal gain and financial damage caused are estimated at more than a hundred million kuna," said Devcic.

He added that the court also took into account the fact that the accused "is one of the highest former state officials with numerous contacts in the country and abroad."

Devcic said the defence had the right to appeal against his ruling and that a possible appeal would be considered by a panel of judges of the Zagreb County Court. In case the appeal is rejected, the defence may also appeal with the Constitutional Court.

"It is a fact that with the passage of time, arguments in favour of investigative custody must be better and better, and that new elements must be found," said Devcic, adding that his ruling, if it became final, would again be considered by the court in two months' time.

The decision to remand Sanader in investigative custody was first made known by Sanader's attorneys, who underlined that the reason for the decision - that Sanader was a flight risk as cited by the Office for the Suppression of Corruption and Organised Crime (USKOK) - was removed by collateral in the amount of 12.4 million kuna offered by Parliament Speaker Luka Bebic, Sanader's friends and former party colleagues Mario Zubovic and Jerko Rosin, and his wife Mirjana Sanader.

Goran Suic, one of Sanader's attorneys, told reporters earlier in the day that since Sanader's assets were blocked, collateral for release pending trial was offered by his friends, with Bebic offering his house, HDZ MPs Jerko Rosin and Mario Zubovic their flats, and Sanader's wife Mirjana a third of their house.

Another attorney for Sanader, Jadranka Slokovic, said the defence was disappointed as it believed that Sanader was a generally recognisable person, adding that the defence had offered Sanader's passport and suggested other measures of precaution that would enable his free movement.

Another member of Sanader's defence team, Cedo Prodanovic, said the court's refusal of the bail offer proved that it did not hold in high esteem the Parliament Speaker either.

"He did not mortgage only his property, but his reputation as well. He supported Sanader because he believes that he would not betray his trust or cause harm in any other way to the property and reputation of the people who have supported him," Prodanovic said.

Asked if Sanader said something to the investigating judge today, Prodanovic said the former PM reiterated that at the time of his arrest he was not fleeing, but was on his way back to Croatia, of which he claimed the highest representatives of USKOK, the prosecutorial authorities and the Police Directorate had been informed.

USKOK prosecutor Tamara Laptos said she was satisfied with the court decision. She would not comment on the defence's claim that everyone, including senior officials of the Office of the Chief State Prosecutor, had known that Sanader was on his way back to Croatia.

All media have reported that Sanader will be behind bars at the time of parliamentary elections, December 4.