Croatia has arrested 12 people on suspicion of causing more than HRK 1bn ($152m) of financial damage to struggling shipbuilder Uljanik Group and the state budget.

Interior minister Davor Bozinovic told state news agency Hina: "This morning the police began action during which 12 people were arrested."

Domestic media said among the dozen held were former top executives at the yard, which has been hit by order cancellations and strikes by workers seeking back-pay.