Answering questions from the commission's chairman and members, Zagorec said that he had bank accounts in several Austrian banks and dismissed allegations of money laundering, stating that he neither had the right nor the power to sign or draw money from Croatia's so-called secret bank accounts in Austria.
He stressed that he did not have any direct contact with Austrian financial or police services regarding money laundering. He confirmed that he had implemented several projects in cooperation with the Hypo Alpe Adria Bank, but would not say what they were about, stating only that "the projects are a business secret, but are in line with the law and can be investigated".
As for claims that he took from Austrian banks loans worth millions of euros, Zagorec said those claims were unfounded speculation. He confirmed being the owner, co-owner and advisor in several companies (mostly involved in real estate business) in Austria and one in Liechtenstein. Asked how he had acquired such capital in Austria, he said: "As a retired general, I refused pension in Croatia and came to Austria with the know- how to connect people, investors and projects that were financed by banks, it is only logical because I held a good position in Croatia for 11 years and knew what kind of business could be done in Croatia".
Zagorec dismissed suspicion that there had existed jewels which he allegedly stole from a Defence Ministry safe box when he was leaving his post as assistant defence minister, saying that German arms dealer Josef Rothaichner had stated under oath at a recent hearing in Vienna that he "did not deposit any jewels, that there was no bag with diamonds and that diamonds did not exist".
Zagorec was giving his statement before the commission for almost two and a half hours. He would not speak to the press, saying only that his attorney would do it.
His attorney Michael Dohr said that today's hearing was a "political show" the purpose of which was not to obtain information on Croatia's request for legal assistance from Austria or Zagorec's extradition, but a failed probe into Zagorec's connections with Austrian politicians and others.
Dohr would not speak about the content of two DVDs that were submitted by Zagorec's defence at the first extradition hearing, but only said: "We have nothing to hide, that is why we are here in the parliament, we are playing with open cards".
Dohr reiterated that the proceedings against Zagorec were politically motivated and that this could be proven by the DVDs that were submitted as evidence and that the investigating court allowed to be presented at the second extradition hearing on July 25.
The chairman of the Austrian parliamentary commission, Martin Graf, said that the purpose of today's hearing was to obtain more details about the information with regard to which the Croatian State Prosecutor's Office sought legal assistance from Austria - Croatia's bank accounts in Austria and bank transactions and the suspected money laundering.
Zagorec's attorney distributed to reporters a written statement to support his claims that the arrest of his client was politically motivated, in which he particularly accuses President Stjepan Mesic of using the Zagorec case to incriminate his political opponents and strengthen his position in Croatia.
Dohr said in the statement that during a recent visit to Austria Mesic had personally intervened with Austrian politicians to see that Zagorec was handed over to Croatia.