European prosecutors investigate €685,000 agricultural subsidy fraud after Croatia earthquake

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European prosecutors investigate €685,000 agricultural subsidy fraud after Croatia earthquake
European prosecutors investigate €685,000 agricultural subsidy fraud after Croatia earthquake

The European Public Prosecutor’s Office (EPPO) in Zagreb (Croatia) has initiated an investigation against four individuals suspected of subsidy fraud. The four suspects were arrested yesterday at the request of the EPPO, while other investigative activities were conducted in cooperation with the Zagreb Police Department. 

The investigation revealed that the suspects, in their roles of company owners, wanted to illegally obtain approximately €685 000 in non-refundable support, co-financed by the European Agricultural Fund for Rural Development (EAFRD), to restore agricultural land and production potential damaged by an earthquake that had struck the Sisak area on 29 December 2020.

Between February 2021 and December 2021, the suspects, each on behalf of their respective company, submitted damage claims to the City of Sisak, in which they falsely stated the extent of the damage to their companies’ greenhouses. Once the Croatian Ministry of Agriculture issued their verification records, based on the claims submitted, the suspects sent their grant payment requests to the Paying Agency for Agriculture, Fisheries and Rural Development for a total amount of € 685 077.19, of which €582 315.60 (85%) came from the EAFRD and €102 761.59 (15%) from the State Budget of the Republic of Croatia.

Given that the Paying Agency conducted a control procedure of the submitted requests, during which employees of the Ministry of Agriculture established on-site that the damage declared in the submitted claims did not correspond to the actual damage, the requested support was not paid out.

All persons concerned are presumed to be 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.

Editorial Team

James Smith

Editor-in-Chief

European Agricultural Fund for Rural Development (EAFRD), European Union, EU funds, Subsidy Fraud, Zagreb, Croatia, European Public Prosecutor’s Office (EPPO)

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