Croatian ex-PM Sanader detained for further two months

ZAGREB: A Croatian judge on Wednesday extended by two months the detention of former prime minister Ivo Sanader, held in Zagreb since his extradition from Austria in July on corruption charges.

The decision was made because of the "danger of escaping and influencing witnesses who should be interrogated during the procedure," judge Kresimir Devcic told reporters.

The continued detention was demanded by the National bureau for the fight against corruption and organised crime (Uskok).

Prosecutors say that between 1994 and 1995, when he was deputy foreign minister, Sanader arranged to be paid 3.5 million kunas (469,000 euros, $678,000) in bribes from the Hypo Alpe Adria Group (HGAA).

During the same period, the bank gave the Croatian government a loan of 140 million schillings (10.2 million euros, 14.5 million dollars).

Sanader has also denied involvement in another affair, the alleged embezzlement of millions of euros from state-run firms through a local marketing company that acted as a smokescreen for illegal business.

Sanader, who led the government between 2003 and 2009, was detained in Austria in early December on a Croatian arrest warrant.

His return came at a sensitive moment for his former Croatian Democratic Union party as Croatia prepares for general elections in December 4, with his successor Jadranka Kosor heading the polls.

Sanader surprised observers when he suddenly stepped down in July 2009.

Fighting corruption is one of the key criteria Zagreb has to meet in order to join the European Union.

Croatia, which is due to join the bloc in mid-2013, has stepped up its anti-graft fight since Kosor took over.

Copyright AFP (Agence France-Presse), 2011