Svaljek said the City Administration was functioning normally and in line with powers defined by law.
Mayor Milan Bandic was arrested on Sunday along with the CEO of the Zagreb multi-utility conglomerate Zagrebacki Holding, Slobodan Ljubicic, the owner of the industrial waste removal company CIOS, Petar Pripuz, and 16 other persons on suspicion of a number of corruption-related crimes causing financial harm to the city budget.
According to police sources, the arrests were made after an investigation of several months into suspected wrongdoing in the city government and Zagrebacki Holding.
The arrested persons are suspected of a number of corruption-related crimes, abuse of office and influence-peddling.
Parliament Speaker Josip Leko was reserved in his comment on the arrests, saying he had little information on the matter.
"I have no information, except from what I can learn from the media," Leko told reporters in the parliament building.
He dismissed a reporter's remark that Croatia was a small country for major-scale corruption, a pun based on the Croatian tourist slogan "Croatia - a small country for great holidays".
"Croatian society is developing, living in the 1990s, 2000 or 2014 is not the same thing. Society is developing in a positive direction in terms of standards that exist in normal democratic societies," said the parliament president.