ZAGREB, 17 Oct (Hina) – The European Public Prosecutor’s Office in Zagreb has initiated an investigation against four individuals suspected of abuse of position and authority, and of incitement to abuse of position and authority, in connection to fraud involving renovation works at the General Public Health Clinic in Zagreb.

All suspects have been arrested on Thursday at the request of the EPPO, following investigative measures conducted in cooperation with the National Police Office for the Suppression of Corruption and Organised Crime.

According to the investigation, the Ministry of Health had assigned to the General Public Health Clinic a grant of €390,000, with funds provided from the EU Solidarity Fund (EUSF) and the Recovery and Resilience Facility (RFF), to renovate a part of the clinic due to damage caused by the 2020В earthquake.

The EPPO believes two senior managers of the General Public Health Clinic manipulated the procurement procedure for the renovation to ensure the contract was awarded to a favoured company. This was allegedly requested by another employee of the clinic, the third suspect, who is related to the fourth suspect, owner of the company that was ultimately awarded the contract.

It is understood that from the side of the clinic, it was decided to perform a simplified procurement procedure for the renovation works. As part of the arrangement among the suspects, invitations to submit bids were sent only to companies whose details were provided by the fourth suspect, the EPPO said.

Of the companies invited, it added, only the company owned by the fourth suspect submitted a bid, which was subsequently found valid, and a contract for the complete renovation of the clinic building was concluded with the company for a total amount of €635,790.

The total amount was paid to the involved company, of which €345,000 were charged to the EUSF and the RRF, and €290,700 to the City of Zagreb.