Financial Crimes Investigation Process in Croatia Expanded

Luxembourg, July 3, 2024

The European Public Prosecutor’s Office (EPPO) in Zagreb, Croatia has decided to expand an investigation against four suspects and a company for subsidy fraud and money laundering. The expanded probe is due to suspicions of an additional subsidy fraud committed by one of the suspects and another company.

Background

In October 2023, the EPPO initiated an investigation into the awarding of a €2.5 million EU agricultural grant under the ‘Support for investments in agricultural holdings’ call. The call was co-financed by the European Agricultural Fund for Rural Development (EAFRD) at a rate of 85% and the state budget of the Republic of Croatia at a rate of 15%.

Allegations

It is alleged that one of the suspects had an arrangement with three others to fraudulently obtain non-refundable EU agricultural funds between February 2015 and October 2023. The investigation has uncovered evidence that this suspect committed another subsidy fraud by submitting a fraudulent application for direct payments through the Integrated Administration and Control System (IACS) for rural development measures, financed by the EAFRD, on behalf of another company.

False Data Submission

The main eligibility criterion for the application was possession of agricultural land. It is understood that before submitting the application, the suspect fraudulently acquired the lease of a large area of state-owned agricultural land. The suspect then submitted three payment requests to the Paying Agency for Agriculture, Fisheries, and Rural Development between May 2019 and July 2021, incorporating false data.

Investigation Findings

The agency paid €58,885.91 based on the first two requests, but detected irregularities in the third request, which prevented a further payment of €6,839.33. As a result, the EAFRD suffered a loss of €58,885.91.

Next Steps

Further investigative activities are planned to establish all circumstances of the alleged criminal offenses. The EPPO is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.

About the European Public Prosecutor’s Office (EPPO)

The European Public Prosecutor’s Office (EPPO) is an independent public prosecution office of the European Union, responsible for investigating and prosecuting crimes that threaten the financial interests of the EU.