EPPO investigation into corruption and subsidy fraud covers 21 people

The European Public Prosecutor's Office (EPPO) in Zagreb has launched an investigation into 21 suspects, including a former expert advisor at the Agricultural Paying Agency and the head of the agency's branch office, on suspicion of corruption and subsidy fraud.

The fraud is related to subsidies from the European Agricultural Fund for Rural Development (EAFRD) and the European Agricultural Guarantee Fund (EAGF), the EPPO reported on Thursday.

The arrests followed 30 searches involving 150 police officers, and the investigation involved, in addition to the EPPO and the police, the Paying Agency for Agriculture, Fisheries and Rural Development and the USKOK Office for Prevention of Corruption and Organized Crime tax authorities.

The former expert advisor and the head of the branch office are being charged with abuse of office and authority and accepting bribes. From 2020 onwards, the former expert advisor of the Agency allegedly connected two other suspects to a criminal association in order to enable interested farmers to obtain improper support from EU funds in exchange for a monetary reward.

There is a reasonable suspicion that the former expert advisor, together with two other members of the criminal association, unreasonably increased the area of agricultural land in the relevant register and that they forged documents proving the performance of agricultural activities.

These documents included unreliable invoices for the sale of manure and unreliable laboratory analyses of soil that were attached to applications for the allocation of EU funds.

At least 36,000 euros in bribes were received

The evidence collected so far shows that the former public servant and two other suspects, together with the farmers covered by this investigation, attempted to improperly obtain 670,000 euros in European support, of which 357,000 euros were paid out.

Members of the criminal association received a cash reward of at least 36,000 euros, the EPPO and the Police Directorate reported.

In addition, there is a suspicion that the head of the Agency's branch agreed with at least four other farmers to provide them with assistance in preparing and submitting applications for EU funding in order to obtain approval for agricultural incentives and support, under irregular circumstances, in exchange for illegal financial gain.

The facts established so far give rise to a reasonable suspicion of the commission of criminal offences of abuse of position and authority, receiving and giving bribes, subsidy fraud and forgery of documents, committed within the framework of the criminal association, the prosecution concludes.

The Director of the Agency for Payments in Agriculture, Fisheries and Rural Development, Nikola Dolački, stated after the arrest that these were irregularities that the agency had reported to the competent institutions after internal control and supervision.

Source: HRT