Protega, who was at the helm of the HPB from 2003 to 2009 and is suspected of approving illegal loans during that period which defrauded the bank of HRK 300 million, said he spent between five and six million kuna on the business cooperation with Fimi Media, mainly for marketing campaigns.

The first deal was made just before Christmas 2006, Protega said, adding that Barisic arranged the first meeting with the agency's director, Nevenka Jurak.

Asked if Barisic's involvement was decisive, Protega said the most important thing was the price but that he would not have heard of the agency had Barisic not advocated it.

Protega said he wanted to humour Barisic because he was a state secretary at the Finance Ministry and the HPB wanted the support of the government, so he asked Barisic to recommend state companies that would could be the bank's clients.

Protega said Barisic could be unpleasant if his suggestions to work with Fimi Media were not accepted and that he often reminded him that the agency was close to and helping the then ruling HDZ (Croatian Democratic Union).

Protega recalled a meeting at the Customs Administration, where he was met by Barisic and Jurak to agree on advertising and agree on a contract under which the HPB would pay Fimi Media a monthly lump sum of HRK 100,000.

Protega said Sanader had never called him about the business cooperation with Fimi Media, thus refuting Barisic's claims.

The Fimi Media trial for the siphoning of money from state institutions and companies resumes on Wednesday.

Sanader and his former spokesman Ratko Macek have rejected the charge of siphoning HRK 70 million through Fimi Media, while the HDZ's counsel claim the party's bodies were unaware of the wrongdoing.

Barisic and Jurak pleaded guilty to the charges, as did the HDZ's former accountant Branka Pavosevic.