The European Public Prosecutor's Office has opened an inquiry into the Nova Gradiska Mayor and an MP, Vinko Grgic, for accepting a bribe of HRK 100,000 from businessman Kreso Petek in return for the allocation of a HRK 4.2 million EU grant for the construction of a recycling yard in Nova Gradiska.

In addition to Grgic, who won a parliamentary seat as an SDP official but left the party when the scandal broke out, and Petek, who are under investigation in Croatia for fixing a multi-million kuna deal for the construction of a solar power plant, the EPPO office is also investigating two other persons, identified as I.Š. and S.K., for adjusting documentation for the construction of the recycling yard, Croatian state news agency Hina learned from sources close to the investigation.

This is the first case opened by the EPPO, which earlier this month asked the Croatian Parliament to strip Grgic of immunity from prosecution on suspicion of bribe-taking and abuse of office. Parliament then lifted his immunity.

The EPPO, without giving the identities of the suspects, said that there were grounds for suspicion that Grgic had demanded a bribe from Petek in return for manipulating the public procurement procedure to award the recycling yard construction project to Petek’s company. The project was co-financed by the European Cohesion Fund with HRK 4.2 million.

I.S. and S.K. are suspected of adjusting the technical capacity and bid evaluation criteria, ensuring preferential treatment for Petek’s company.

The EPPO said that the project was eventually awarded to Petek’s company, as a result of which the City of Nova Gradiska was defrauded of at least HRK 90,000 and the European Cohesion Fund of at least HRK 427,000.

If Grgic is indicted, he will stand trial in Zagreb.

(€1 = HRK 7.5)