New arrests made in Croatia's Podravka probe

19/01/2010

ZAGREB, Croatia -- Police arrested ten people Monday (January 18th) as part of a financial investigation into local food producer Podravka. One of the ten is a company manager; the others are directors or managers of firms that have worked with Podravka, reportedly including a businessman close to former Deputy Prime Minister and Minister of Economy Damir Polancec. In October, police arrested several company officials who allegedly intended to buy company shares and take over the firm with its own money -- a scam that cost the country approximately 34.5m euros. Polancec resigned over the scandal shortly afterward but denies any wrongdoing. (HRT, Javno, Index, Poslovni, AFP - 18/01/10)

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