FORMER CROATIAN MINISTER SENTENCED TO PRISON: She Was Under Investigation by Laura Codruța Kövesi for EU Funds Misuse!

A former Croatian minister of regional development and EU funds was sentenced today by the County Court in Zagreb to seven months in prison for the criminal offense of abuse of position and authority, the European Public Prosecutor’s Office (EPPO) announced.

As previously reported, former Plenković minister Gabrijela Žalac, whom he once called “brilliant,” ordered on at least nine occasions between May 2017 and July 2019 that her private expenses at restaurants and cafes—which were not justified as official but were private and therefore ineligible for EU funding—be paid with public money.

It was determined that these expenses were partially included in the procurement costs of the Directorate for Strategic Planning and Coordination of EU Funds from the Operational Program “Competitiveness and Cohesion.”

Guilty Plea Agreement

By paying private expenses with public funds, the former minister obtained an unlawful financial gain of €9,732.35—to the detriment of the financial interests of the EU (85%) and the Republic of Croatia (15%).

The verdict was reached based on a guilty plea agreement, as the accused admitted her guilt. During the investigation, she paid the full amount of €9,732.35 as restitution for damages.

The EPPO is the independent public prosecutor’s office of the European Union, responsible for investigating, prosecuting, and bringing to trial offenses against the EU’s financial interests, and it is led by Laura Codruța Kövesi.

Already Sentenced to Two Years in Prison

Žalac had previously been convicted in the “Software” affair. The County Court in Zagreb sentenced her this June to two years in prison for abuse of position and authority and trading in influence. That verdict was also the result of a guilty plea agreement, and before signing the deal, she paid €200,000 as partial restitution.

That case concerned the procurement of an information system in 2017. According to the EPPO indictment, the estimated value was artificially inflated, a negotiated procedure without publication was conducted, and the contract was awarded at an unrealistically high price of €1.73 million. Although the procedure was initially annulled for violating the Public Procurement Act, the contract was eventually finalized. It is estimated that the EU budget was damaged by at least one million euros, and the Croatian state budget by almost €300,000. The court upheld the legality of messages found on Josipa Rimac’s mobile phone (which mentioned the initials “AP”), which were included in the file against Žalac.

Separately, an investigation was conducted against Žalac on suspicion of paying for a birthday celebration with EU funds, which was confirmed by today’s verdict. In that case, her then-associate Ivana Alilović pleaded guilty and settled for a suspended sentence.