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

In October 2023, the EPPO in Zagreb initiated an investigation into the awarding of an EU agricultural grant within the #Support for investments in agricultural holdings” call, with a total value of €2.5 million. 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%. It is alleged that, between February 2015 and October 2023, one of the suspects had an arrangement with the three others, in order to fraudulently obtain these non-refundable EU agricultural funds.

Since then, 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.

Irregularities identified in the third request for payment

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

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. Consequently, the EAFRD suffered a loss of €58 885.91.

Further investigative activities are planned to establish all circumstances of the alleged criminal offences.