Former Croatian Minister of Regional Development and European Union Fund, Gabrizella Elac, has been sentenced by the Zagreb Court to two years jail for misuse of the office and is accepting financial benefits for using his political impact.
The European Public Prosecutor Office (EPPO), which led the prosecution, confirmed the verdict on its website, as reported by the Croatian media.
The case also includes several other defendants: Croatia’s Central Finance and Contract Agency (SAFU) and two businessmen, all facing equal allegations.
Bandit and inflated contract
Žalac, who served as a minister from October 2016 to July 2019, was accused of manipulating a public procurement process launched in 2017 for the development of an IT system. He allegedly took deliberate steps to protect unfair benefits for a specific businessman and its affiliated companies.
The estimated value of the contract was deliberately inflated, and the tender was honored without public information. Companies associated with only preferred businessmen were invited to bid and eventually received a contract for a significant amount of € 1.73 million.
According to EPPO investigators, the owners of Andalac and Business emphasized to honor the contract even after canceling the initial procurement process to violate public procurement laws. Despite this, the contract was eventually signed, and companies received adequate payments, which were later transferred to private accounts or withdrew to cash.
Financial Damage to EU and State Budgets
The estimated financial damage to the EU budget exceeds €1 million, while losses to the Croatian state budget amount to nearly €300,000.
Žalac had previously reached a plea agreement after admitting to the charges. As part of the settlement, she repaid €200,000 as partial compensation for the damages caused. Meanwhile, legal proceedings continue against the three remaining defendants — the former SAFU director and the two business owners — as well as against their companies.
