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Croatian Power Company's Ex-Chief Reportedly Arrested For Graft

The former head of Croatia's largest state-owned firm -- the power company HEP -- was reportedly arrested today on suspicion of embezzling millions of euros.

Croatian media reports say Ivan Mravak, who was sacked by the government last September, was detained in Zagreb. Police were carrying out a search of his home as well as the HEP premises.

The reports says Mravak is suspected of purchasing electricity abroad at steep prices with the state firm's money only to resell it at much lower prices to a private local company that later redistributed it to a Bosnian firm for high profits.

Various media sources say Mravak is accused of embezzling from 14 million to 80 million euros.

Police have said they are investigating three people "suspected of abuse of power" in connection to the sale of electricity at "unrealistically low prices that were harmful to HEP."

compiled from agency reports