Zagreb - The latest in a series of corruption scandals to hit Croatia, involving an attempt to illegally take over the country's largest food company, forced the resignation on Friday of Deputy Premier Damir Polancec. Polancec, 42, tended his resignation to Prime Minister Jadranka Kosor, who accepted it on the same day.
Implicated in the attempted takeover scandal, he was facing a no-confidence motion the opposition launched in parliament. 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 Podravka Group and other suspects, including businessmen, making a dozen arrests. All of the suspects remain in detention.
Those arrested are alleged to have drained 240 million kuna (49 million dollars) from the Podravka to buy its shares for themselves. Media reports said Polancec used his political influence to shield them.
Polancec, who was in charge of the economy and privatization in Croatia, 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 was scheduled to meet later Friday and appoint Polancec's successor.
The Podravka Group is one of Croatia's leading companies. It produces food, beverages and pharmaceuticals.
The scandal is the most recent since July, when Kosor took over from Ivo Sanader as prime minister and as head of the ruling conservative Croatian Democratic Union.
Former defence minister, now legislator, Berislav Roncevic faces trial after the parliament stripped him of immunity earlier this month. Accused of embezzling 10 million kuna, Roncevic may become the highest-ranking member of a ruling party in Croatia to go to court over corruption.
In a previous scandal, Kosor replaced the head of the Croatian utility corporation HEP Ivan Mravko and other top-level executives.
Mravko went on trial on Friday in connection with the fictitious employment by HEP of an HDZ activist. The activist was allegedly kept on the payroll for more than four years without having worked at the company.
The European Union has been pressuring Zagreb to take steps to crack down on corruption, making that a condition for EU membership.
A liberal opposition official, Radomir Cacic, estimated in a recent interview that in Croatia "incompetency and corruption swallow at least 30 per cent of all investments into infrastructure," which are under government control.
