Croatian Court Hears Testimony on Alleged Misuse of EU Funds by Former Ministers

The Zagreb County Court is currently hearing testimony in the high-profile 'Po babi i stričevima' (roughly translated as 'By Grandmothers and Uncles') corruption case, which has implicated four former ministers from Andrej Plenković's governments. The trial centers on the alleged misappropriation of funds intended for regional development, specifically focusing on a 2018 tender designed to support companies in areas populated by national minorities. Prosecutors contend that after the tender officially closed, approximately two million kuna were improperly distributed to associates of ministers and political colleagues.

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I didn't know why I was going to the minister's meeting. And after it, I don't know what decision was made.

Witnesses, including local officials and business figures, have been providing accounts of the tender process and subsequent fund allocation. One key witness, Damir Kaufman, a former secretary-general of the Ministry of Economy, testified that he had warned against distributing additional funds outside the established order, emphasizing that grants should be allocated sequentially based on merit. He also recounted being present at meetings where the tender was discussed and denied claims that he was alerted to pressures for improper allocations. This testimony is crucial as it sheds light on the internal discussions and potential procedural irregularities within the ministry.

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I told him that we applied for grants. I told him that we don't want any irregularities. Horvat told me not to worry.

Another witness, Ivan Kos, a businessman whose companies received grants, stated he knew former minister Darko Horvat and had informed him about applying for the funds. Kos admitted to sending company data to Horvat via an application, expressing a desire to avoid any irregularities. He recalled Horvat assuring him not to worry. Kos also mentioned that his company faced reputational risks and difficulties obtaining credit following the scandal, highlighting the broader economic consequences of such alleged corruption. The ongoing trial continues to unravel the complex web of connections and decisions that allegedly led to the misuse of public funds, raising significant questions about governance and accountability in Croatia.

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I didn't know why I was sending data about my companies to the minister via the application.