Ljubljana - The Commission for the Prevention of Corruption (KPK) has launched an investigation against Prime Minister Janez Janša on suspicion of a conflict of interest in management reshuffle at the bad bank.

The procedure was launched based on the watchdog's initial findings in regard to appointments at the Bank Assets Management Company (BAMC), which confirmed suspicion of a breach of the integrity and prevention of corruption act.

The investigation was launched to determine whether there has been indeed a conflict of interest in the appointment of a non-executive director at the bad bank, the KPK said on Thursday.

The prime minister has been notified of the developments and will have all the rights during the investigation procedure in line with the relevant regulations and will be able to explain his actions, said the watchdog, adding that it could not give more details as the investigation is ongoing.

The BAMC board of directors includes executive and non-executive directors. The board's chairman is Franci Matoz, who is also a non-executive director. Other non-executive officers are Gregor Planteu, Aleksander Lozej and Alenka Urnaut Ropoša.

The bad bank published an open call today seeking applications for an executive director post.

Matoz, a prominent lawyer, was appointed the chairman in July. Planteu was named a non-executive director on the same day. Matoz is known as a long-time legal representative of Janša and his Democratic Party (SDS).

The watchdog confirmed for the STA in August that it was looking into the circumstances of Matoz's appointment as the chairman of the bad bank's board of directors and other recent management reshuffles there. The inquiry was based on a report that the anti-graft body received in May.