One suspect was arrested and searches carried out in Romania in relation to suspected fraud involving €3.5 million EU funding for small farms and young farmers.

The European Public Prosecutor’s Office (EPPO) in Bucharest, Romania, is leading the investigation into suspected procurement and subsidy fraud, which involves non-repayable EU funding.

Searches were carried out in Roma Dambovita County on May 13, with one suspect arrested.

The investigation concerns hundreds of projects submitted for funding from the European Agricultural Fund for Rural Development (EAFRD), intended to support the installation of young farmers and the development of small farms.

According to the investigation, an authorised consultant allegedly used and submitted false and inaccurate documents in 237 projects presented to the contracting authority, the Agency for Rural Investment Financing (AFIR).

The projects were submitted on behalf of 237 legal entities, including individual enterprises, family businesses, authorised individuals, and companies.

Financial support

The allegedly false documents were used to demonstrate compliance with the funding conditions and to fraudulently obtain non-repayable EU financial support.

The total value of the requested funding amounted to approximately €5.7 million, while the estimated damage to the EU budget is approximately €3.5 million.

The main suspect, the consultant, was detained on May 13 and arrested the following day by the Bucharest Tribunal, at the request of EPPO. Three other individuals were indicted and placed under judicial control.

In addition, 22 individuals are under investigation for allegedly agreeing, in exchange for commissions ranging from 10% to 15% of the total project value, to allow fraudulent funding applications to be submitted in their names.

If found guilty, the defendants could face prison sentences of up to 10 years.

During the searches, investigators gathered evidence, including documents and electronic devices.

Croatia

Earlier this month, EPPO made progress in a separate agri-fund investigation in Croatia, leading to the arrest of 21 people, including current and former public officials.

The EPPO's office in Zagreb, the country's capital, has begun an investigation against 21 Croatian citizens who were arrested on May 6 in a probe into possible corruption and subsidy fraud.