Just weeks after being sentenced for abuse of office, former Croatian Minister for Regional Development and EU Funds Gabrijela Žalac is facing new criminal charges—this time for alleged embezzlement of public and EU funds.
On July 9, the European Public Prosecutor’s Office (EPPO) officially indicted Žalac for misappropriating nearly €9,732 in public money during her ministerial tenure from 2016 to 2019. The charges allege she used government representation funds to partially pay for private restaurant visits on at least nine occasions between May 2017 and July 2019. According to EPPO, approximately 85% of those expenses were funded by the European Union, with the rest covered by Croatian taxpayers.
While the investigation was launched in December 2023, the defendant has since reimbursed the full amount, the EU’s prosecutorial body confirmed. Despite this, EPPO stresses the seriousness of the offence, which could carry a sentence of six months to five years in prison.
This indictment follows closely on the heels of Žalac’s June conviction in an earlier corruption case. In that matter, the former minister pleaded guilty to abuse of office and trading in influence in connection with a manipulated €1.73 million public procurement deal from 2017. The County Court of Zagreb handed her a two-year prison sentence under a plea agreement, after she admitted to steering contracts to favoured firms through unlawful procedures. Although the tender had officially been annulled, the contract was still awarded, resulting in at least €1 million in damage to the EU budget. Žalac partially compensated the loss with a €200,000 payment.
The Croatian Ministry for Regional Development and EU Funds, which Žalac led during the alleged offences, has yet to issue a statement.
The dual indictments underscore the heightened scrutiny of EU fund management across member states, especially under EPPO’s growing mandate to pursue financial crimes affecting the Union’s budget. Žalac’s legal troubles could also prove politically damaging in Croatia, where public trust in institutional integrity remains a sensitive issue.
As the legal proceedings unfold, the spotlight remains firmly fixed on Zagreb—and on the broader efforts to root out corruption tied to EU financial interests.
By FCCT Editorial Team
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