Pavkovic received the December 4 decision saying the investigation was dropped two days ago.

He said Jarnjak did not make any plea agreements with USKOK and that his prosecution was dropped because there was no evidence of his involvement with the slush funds.

Jarnjak would not comment on USKOK's decision. USKOK was not available for comment either.

"My client managed to disprove all suspicions of his innocence through procedure prescribed by law," said Pavkovic.

Jarnjak was put under investigation in late October as part of an investigation into the Fimi Media case over an alleged slush fund in the HDZ (Croatian Democratic Union), which USKOK is investigating as a legal person.

Jarnjak, one of the vice presidents of the until recently ruling party, told the press at the time that he would disprove all suspicions against him in an interview with USKOK.

About 10 days later, he was interviewed at USKOK but would not reveal anything to the press due to the confidentiality of the investigation, while Pavkovic said they "referred (the investigators) to relevant evidence."

Jarnjak was suspected of involvement in the syphoning of tens of millions of kuna from state companies and ministries from 2003 to early 2009. The other suspects are former Prime Minister and HDZ president Ivo Sanader, former government and HDZ spokesman Ratko Macek, the party's accountant, Branka Pavosevic, the owner of the Fimi Media advertising company, Nevenka Jurak, and two of her associates.

Part of those funds, USKOK suspects, went to Sanader and part to finance the HDZ. USKOK suspects at least HRK 23 million passed through the slush fund.

The media have been speculating that USKOK will indict the HDZ, Sanader, Macek, Pavosevic, and former HDZ treasurer and customs chief Mladen Barisic for the slush fund by the middle of the month.