Jadranka Kosor

Croatian officials have responded angrily to claims made in a newspaper that judges on an arbitation panel concerning a territorial dispute between Croatia and Slovenia were ready to rule in Slovenia's favour.

The Bureau for Combating Corruption and Organised Crime, USKOK, filed its latest indictment against Bozidar Kalmeta, the mayor of the Croatian coastal town of Zadar, on Friday.

This follows the anti-fraud body's indictments of Zagreb mayor Milan Bandic and former Sisak-Moslavina county prefect Marina Lovric Merzel on Wednesday.

Hearings at the Hague-based court for the resolution of international disputes began on Monday with Croatia presenting its case, as Zagreb and Ljubljana attempted to settle a dispute that has continued since they both became independent from the former Yugoslavia.