Four indicted over €286,000 EU subsidy fraud in Croatian briquette plant project
The European Public Prosecutor’s Office (EPPO) in Zagreb (Croatia) has filed an indictment against four individuals and two companies for subsidy fraud involving the misuse of EU funds intended for the construction of a new briquette production plant.
As previously reported, the investigation revealed that one of the indicted companies was a beneficiary of an EU subsidy for a construction project co-financed by the European Structural and Investment Funds (ESIF) and Next Generation EU’s Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU). The funds were envisioned for the construction of a new briquette production plant, with eligible procurement costs amounting to €945 858, out of which 45% were non-refundable.
According to the evidence, the two defendants, the director and the actual business manager of the indicted company, together with other accomplices, arranged a purchase of used briquette production machines, contrary to the co-financing conditions, at prices several times higher than they were worth.
In order to implement the arrangement, the other two defendants procured, by means of their respective companies, the used machines from a company from the Republic of Serbia at the price of €398 866. Afterwards, while hiding the fact that those were used machines, they sold them as new machines to the indicted company at the price of €935 297.63.
After that, the first two defendants requested €420 883.93 of non-refundable subsidies from the Croatian Agency for SMEs, Innovation and Investments (HAMAG-BICRO), falsely stating that the new equipment was purchased at market prices. The agency then made a first payment of €285 904.84. However, due to irregularities found, the payment of the remaining amount was denied.
By doing so, one of the indicted companies obtained a pecuniary gain in the amount of €285 904.84 to the detriment of the EU, while other companies received a pecuniary gain in the total amount of €536 431.63 due to the difference between the purchase and sales prices of the machines.
If found guilty, the defendants face between one and ten years in prison.
All persons concerned are presumed innocent until proven guilty in the competent Croatian courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.
Editor-in-Chief
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