The European Public Prosecutor’s Office (EPPO) in Zagreb has initiated an investigation against nine Croatian citizens and one legal entity on suspicion of defrauding over €9 million in EU subsidies and forging official documents. The Medjimurje County Police Administration has arrested all nine suspects today, at the request of the EPPO.

Between March 2018 and June 2023, the former and current presidents of a company’s Management Board, in coordination with the president and a member of the Supervisory Board, submitted different funding requests totalling over €9 million under Croatia’s 2014-2020 Rural Development Programme, specifically to improve animal welfare in pig farming.

The support, co-financed by the European Agricultural Fund for Rural Development (EAFRD) (85%) and the Croatian state budget (15%), compensates beneficiaries for additional costs incurred by fulfilling obligations that go beyond standard legal requirements for the feeding, care and housing conditions of pigs.

Despite knowing their company did not meet these conditions, the suspects allegedly submitted falsified applications for their subcontractors’ farms, with the help of five other employees of the company. As a result, of the more than €9 million requested, the company is alleged to have fraudulently received over €4.7 million in EU subsidies.

Upon uncovering the irregularities, the Paying Agency for Agriculture, Fisheries and Rural Development withheld €3.6 million in requested support for 2022 and ordered the return of part of the misappropriated funds, recovering approximately €1.5 million.