EPPO Accuses Varaždin Entrepreneurs in the Purifier Affair

The European Public Prosecutor’s Office (EPPO) has accused former director of the water supply company Varkom, Željko Bunić, owner of GR Group, Robert Gotić, and owner of EcoEnergy, Stjepan Ptiček, of corruption in obtaining EU funds for the reconstruction of the wastewater treatment plant in Varaždin.

EPPO reported, without disclosing the identities of the defendants, that Bunić, Gotić, and Ptiček, between December 2019 and July 2022, were in agreement to favor Gotić’s company in the implementation of the UPOV Project, co-financed by the European Union’s Cohesion Fund, managed by the public company Varkom.

In return, Gotić arranged for renovation work on Bunić’s house in Mulini on the island of Ugljan, EPPO emphasized.

Additionally, the defendants ensured Gotić’s company was awarded contracts for the extension and reconstruction of the UPOV from May 2021 to 2022, during which Bunić received compensation for financial management, while Ptiček’s company was awarded a subcontractor job for part of the work valued at approximately 9.69 million euros.

To implement their plan, Bunić and Ptiček first secured a contract for Ptiček’s company for the preparation of main construction projects and obtaining a building permit, with Ptiček manipulating the bidding process to ensure his company received the contract.

EPPO continues that in the project preparation, Ptiček’s company incorporated Gotić’s geotechnical-construction project, ensuring that the construction method favored Gotić’s company.

EPPO: Ptiček Paid Bunić 10 Percent Commission

This maneuver, EPPO believes, allowed Gotić’s company to provide the most favorable offer and gain an unfair market advantage. Consequently, Gotić’s company was awarded a contract worth around 35 million euros, while Ptiček’s company received the subcontractor job.

Further investigative actions revealed that Bunić and Ptiček were in agreement, whereby Bunić would take all necessary steps to ensure that Ptiček’s company received Varkom’s contracts in exchange for a payment of 10 percent of the total contract value.

EPPO specifies that Bunić awarded Ptiček’s company 39 contracts with a total value of 681,974 euros, while Ptiček paid the agreed 68,197 euros by covering Bunić’s private expenses related to the construction and equipping of his property.

The prosecution emphasizes that some of the awarded contracts were co-financed by the EU Cohesion Fund, including the one of the highest value. EPPO adds that if the defendants are found guilty, they could face prison sentences ranging from one to ten years.

EPPO launched the investigation in this case in July 2022, which was expanded in September 2023.