Prosecutors question suspects in Uljanik investigation

State prosecutors in Rijeka questioned on Wednesday the 12 current and former executives of the Uljanik shipbuilding group.

The twelve individuals are suspected of causing 1.2 billion kuna in financial damage to the shipbuilding company. Prosecutors have asked the County Court in Rijeka to keep nine of the twelve suspects in investigative custody, citing concerns of possible witness tampering and more crimes. The decision is expected on Thursday.

Prosecutors are investigating crimes that include abuse of trust in business and subsidy fraud, resulting in damages to the shipyards in Pula and Rijeka, a statement from the Prosecutor’s Office said. Prosecutors only released the year of birth of the suspects and not their names, as is practice in Croatia. However, the suspects were photographed as they were escorted by police to prosecutors for questioning. Among them were former Uljanik CEO Gianni Rossanda and his predecessor Anton Brajković.

Police also said they searched 15 offices and homes as part of the probe. Prosecutors allege to executives at Uljanik and its sister shipyard Treći Maj swapped equity in the latter to pay for the construction of four ships in 2010 that Treći Maj was building for Uljanik. They also allege money that Treći Maj received for restructuring from the state was misused and improperly listed in the company’s books. That money was allegedly transfered to Uljanik to pay off its debts.