Ljubljana Mayor Indicted in Stožice Fraud Case

By , 01 Jun 2018, 11:20 AM News
Zoran Janković Zoran Janković ljubljana.si - Photo: Uroš Hočevar

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STA 1 June 2018 - Six years after the first house searches related to the investigation of allegedly fictitious contracts signed to dupe a bank into granting a loan for the Stožice sports complex in Ljubljana, the prosecution has filed indictments against nine people, including Ljubljana Mayor Zoran Janković, POP TV reported on Thursday. 

According to the commercial station, the indictments were filed on 18 May by the National Bureau of Investigation (NBI) and the specialised state prosecution service.

Those indicted also include former Defence Minister Roman Jakič, the former director of the contractor Grep Zlatko Sraka, and Samo Lozej, the former director of the municipal company operating public parking lots.

The nine have been accused of the criminal acts of fraud in obtaining a loan, counterfeiting of business documents and abuse of office or official rights. The specialised state prosecution service has confirmed the indictment for POP TV.

It related to a contract signed in 2010 for the allegedly fictitious lease of parking lots around the complex for EUR 1.8m.

The contract made Grep creditworthy and the company took out a EUR 50m-plus loan from the state-owned NLB bank.

According to POP TV, the Ljubljana City Municipality received EUR 9.4m in co-funding from the state budget and EU funds on the basis of the loan.

In his first response for the TV station, Janković said that he would wait for the next steps. "I still think that the court is the only institute which gives you the chance to prove your innocence".

His lawyer Janez Koščak said that the prosecution was "splitting hairs" with the indictment charging his client with the abuse of office and fraud.

He told the STA that an appeal against the indictment had already been filed, and that he counted on the case being closed before a trial.

Koščak said that the accusation of abuse of office in the signing of the agreement for the loan to Grep was "unusual", as the alleged illegal proceeds gained by Grep is a loan.

"A loan is a legal transaction that is repaid and there could be no talk of any gains," he said, adding that "perhaps even more unusual" was the alleged fraud at the expense of the European Fund for Regional Development.

Fraud means that you mislead someone into doing something at the expense of their assets, Koščak said, noting that in the case in question the funds, which had been intended for the construction of the stadium, had been used for the stated purpose.

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