Financial Crime World

Croatian Businessman Indicted for Subsidy Fraud and Document Forgery

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Introduction

A Croatian businessman has been charged with subsidy fraud and document forgery by the European Public Prosecutor’s Office (EPPO) in Zagreb.

Allegations of Fraud

The suspect is accused of obtaining large-scale non-reimbursable grants for agricultural projects between March 2015 and November 2021, which were co-funded by the EU’s European Agricultural Fund for Rural Development (EAFRD) and the state budget of the Republic of Croatia. The alleged fraud occurred when the businessman:

  • Submitted false applications to Croatia’s Paying Agency for Agriculture, Fisheries and Rural Development, claiming to have sufficient financial means to implement his proposed projects.
  • Falsely claimed to have made payments to suppliers that were never carried out.
  • Pretended to have no debts to the state budget of the Republic of Croatia.

Investigation and Indictment

The suspect sent three requests for approval and payment of non-reimbursable support for his business projects, with one request resulting in a payment of €221,873.84 (HRK 1,671,708.46) to his business account. However, payments for the remaining two requests were not made due to the agency’s discovery that the suspect owed public duties to the state budget.

The estimated damages to the EAFRD amount to €188,592.76 (HRK 1,420,952.20), while the damages to the state budget of the Republic of Croatia are estimated at €33,281.08 (HRK 250,756.26).

Importance of Transparency and Accountability

This case highlights the importance of ensuring transparency and accountability in public funding, particularly when it comes to agricultural projects that rely on EU support. The EPPO’s investigation and subsequent indictment demonstrate a commitment to combating financial fraud and protecting the integrity of the European Union’s funding mechanisms.

  • Ensuring transparency and accountability in public funding is crucial to preventing fraud and mismanagement.
  • The EPPO’s action demonstrates a strong commitment to upholding the values of the EU, including honesty, integrity, and transparency.