Zagreb - Croatian Deputy Premier Damir Polancec resigned Friday in the wake of a massive corruption scandal involving an attempt to illegally take over the country's largest food company. Prime Minister Jadranka Kosor accepted Polancec's resignation, her cabinet said in a statement.
Polancec, 42, had been implicated in the scandal over an illegal takeover attempt of the Podravka Group.
In the wake of the scandal the opposition filed a motion in parliament for a confidence vote against Polancec. Media reports said Kosor's coalition partners asked for his resignation to avoid a potentially embarrassing debate.
The Croatian anti-corruption agency last week raided the homes of more than 10 high-ranking officials of the company and other suspects, including businessmen, making a dozen arrests. All of the suspects remained under arrest.
Polancec, who was in charge of the economy and privatization in Croatia, the next in line for EU membership, denied any wrongdoing and accused the public of "lynching" him.
"The public created a lynching in which I too was embroiled," he told a press conference. "I will fight for the truth and justice... (but) I do not want to harm the government and the coalition."
Kosor's cabinet is scheduled to meet later Friday and appoint Polancec's successor.
The Podravka Group is one of Croatia's leading companies. It produces food and beverages and pharmaceuticals.