he European Public Prosecutor's Office (EPPO) in Zagreb has launched an investigation of four persons and one company for agricultural subsidy fraud and money laundering.

The suspects, whom the EPPO did not name, were arrested and questioned on Wednesday.

The EPPO said on Thursday it suspects that between February 2015 and this month, the founder of the company under investigation, currently the business manager of another company, had an arrangement with the three other suspects to apply for non-refundable EU agricultural funds via the “Support for investments in agricultural holdings” call, which had a total value of over €2.5 million.

The call was co-financed by the EU’s European Agricultural Fund for Rural Development at a rate of 85%, and the Croatian state budget at a rate of 15%.

The media report that businesswoman Vanja G. is suspected of falsifying data, together with the other suspects, to make it seem that she had the funds for a fig plantation on the island of Jakljan off the Adriatic city of Dubrovnik.

Following inquiries conducted in cooperation with Dubrovnik-Neretva County police and the Tax Administration’s independent department for financial investigations, the EPPO suspects that Vanja G. “submitted a fraudulent request in the name of her company for the call,” falsely stating “that her company met the mandatory eligibility requirements.”

It is believed the suspect thereby obtained, for herself and her company, an undue pecuniary gain and “inflicted damage of over €1.5 million to the EU and national budgets.”