The European Public Prosecutor’s Office (EPPO) in Riga, Latvia has secured a conviction at the Riga city court against two individuals and one legal entity, in a case involving a procurement fraud affecting EU agricultural funds.

The case concerns a project for the reclamation of agricultural land and the reconstruction of an amelioration system, funded by the European Agricultural Fund for Rural Development (EAFRD) and administered by the Latvian Rural Support Service.

The total damage to the EU budget amounted to €95, 803.67.

According to the investigation, the beneficiary of the project colluded with another operator to manipulate the public procurement procedure, ensuring that a pre-selected company would be awarded the contract.

In reality, the EPPO determined that the works were not carried out by the contracted company but by the beneficiary itself, using its own resources, in breach of applicable procurement rules.

The court of first instance found both individuals guilty of large-scale fraud.

The main defendant was sentenced to two years’ imprisonment and ordered to pay a fine corresponding to 10 minimum monthly wages.

The second individual received a suspended sentence with a probation period of three years and a fine corresponding to five minimum monthly wages.

The legal entity involved was subject to a coercive measure consisting of the confiscation of real estate.

The damage caused was compensated prior to the conviction, according to the EPPO.

The EPPO is the independent public prosecution office of the European Union.

It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.