Title: Six Arrested in €3.2M Brewery Subsidy Fraud Case in Slovakia

Date: July 21, 2023

Location: Luxembourg

The European Public Prosecutor’s Office (EPPO) in Bratislava, Slovakia, has arrested six individuals in connection with a €3.2 million subsidy fraud involving a brewery.

The Case

• One company, which applied for EU funding to rebuild a brewery and introduce innovative processes for producing cider and beer, is under investigation.
• With up to 45% co-financing by the EU, the company planned to receive a non-repayable financial contribution of €7.8 million from the Slovak Innovation and Energy Agency.

The Allegations

• The company’s managers manipulated the tender process to secure the bid for a previously chosen construction company.
• A complex web of interconnected businesses was created to issue false invoices for the project’s financial contribution.
• In 2018, the suspects obtained a €2 million loan by deceiving the financial institution—potentially committing credit fraud.

The Suspects

• The brewery owner and manager
• The accountant
• The manager of the awarded construction company
• Two public officials from the Slovak Innovation and Energy Agency
• Three legal entities are also under investigation

The Charges

• Procurement and public auction fraud
• Credit fraud
• Money laundering

The Collaboration

• Marks a significant collaboration between the EPPO and Slovakia’s National Crime Agency (Národná kriminálna agentúra)

The EPPO’s Role

• The EPPO is the European Union’s independent public prosecution office
• Responsible for investigating, prosecuting, and bringing to justice crimes infringing upon the EU’s financial interests

The Court Process

• All suspects are presumed innocent until proven guilty in Slovak courts.