The international fraud salon at the Greek OPEKEPE authority.
What the European Prosecutor’s Office is Investigating
The European Prosecutor’s Office (EPPO) is looking into several cases where Greek citizens received EU agricultural funds starting in 2017.
These funds were claimed for pasturelands that the recipients did not own or lease. There are also allegations of funding for agricultural work that was never completed, which deprived rightful farmers of the financial resources they deserved.
The Misappropriation of Funds
Reports indicate a significant misappropriation of EU funds through fraudulent claims.
The issues highlight a network of deceit that may have involved multiple parties, raising questions about the integrity of the financial support systems meant to aid genuine farmers.
Financial irregularities in this sector challenge the credibility of the payments made through the Organisation for Payments and Control of Community Aid for Agriculture (OPEKEPE).
The Revelation of the Scheme
Recent investigations have uncovered a detailed operation that was orchestrated within OPEKEPE, aimed at embezzling vast amounts of money.
These schemes reportedly involved inflated claims and were executed with a level of sophistication that allowed for significant evasion of oversight.
This situation has caused growing concerns about the management practices used regarding the distribution of EU subsidies.
The Anatomy of the Crime
The orchestrated crime appears to consist of a well-structured plan involving key players within OPEKEPE who manipulated processes to enable false claims.
The mechanisms used for forging documents and creating fake records have been brought to light through ongoing investigations. As more details emerge, the complexity of this fraudulent network becomes increasingly evident.
A Three-Tiered Plan
Insights reveal that the fraud was implemented in a three-tiered structure.
At the top were individuals who formulated the strategies for those involved in the illegal activities. The middle tier consisted of facilitators who executed the fraudulent claims, while the bottom tier included the farmers who unwittingly became part of this operation, sometimes falsely claiming subsidies based on manipulated information.
Two-Thirds of Agricultural Subsidies in Crete
A significant portion of the agricultural subsidies—estimated at two-thirds—was claimed in Crete.
This concentration of fraudulent activity raises alarms about regional management and oversight of EU funds. Concerns regarding how these funds were distributed and the potential for systemic issues within OPEKEPE have led to demands for better governance and transparency in the allocation process.
“There are so many farmers from Crete registering land all over Greece that none of the applications are for the same area and no one is registering the same piece of land,” the Ministry of Agriculture official added.
In 34 cases, the applicants received money for land outside Greece. One case involved land in neighboring North Macedonia, which is not even in the EU. “We identified them in 2021 and asked them to return the money,” said a former OPEKEPE manager, who spoke on condition of anonymity due to the explosive nature of the issue. “But the problem in the region was much broader.”
In 2019, two people from Rethymno, Crete, submitted an application for the promotion of a leased area on the island of Tzia for use as pasture land. Their application was accompanied by rental contracts in which two other residents of Rethymno were identified as owners. They received around 73,000 euros from EU funding. The following year, two other producers from Rethymno leased the same area in Tzia and the contracts submitted to OPEKEPE showed that the land had new owners.
“The allegedly changing owners of the same land in Tzia in the Cyclades exchanged the land like shirts,” reads a report submitted by the then president of OPEKEPE, Grigorios Varras, to the Rethymno prosecutor’s office. “There are serious indications of complicity.”
Dismissals “Paused” the Investigation
The situation escalated when key personnel within OPEKEPE were dismissed, leading to a halt in the investigations into these allegations.
The sudden changes in leadership and staff prompted concerns about cover-ups, with many believing that the removals were attempts to suppress findings that could implicate higher levels of the organisation.
This interference has prompted calls for an independent review of the circumstances surrounding these dismissals.
Pressure from Brussels and a €283 Million Fine
Pressure from Brussels has intensified as authorities become increasingly aware of the scale of these fraudulent activities.
In response, a fine of €283 million has been imposed due to the mismanagement and improper allocation of EU funds.
This monetary penalty not only reflects the severity of the misconduct but also indicates a need for accountability and reform within the financial systems governing agricultural support.
Frequently Asked Questions
What are the latest fraud schemes involving OPEKEPE?
OPEKEPE has reported various recent fraud schemes that exploit its payment systems.
These schemes often involve fake documents, false claims for reimbursement, and impersonation of legitimate beneficiaries. The most alarming cases have resulted in the loss of significant sums of money, prompting OPEKEPE to take notice and act accordingly.
What measures has OPEKEPE implemented to combat fraudulent activities?
OPEKEPE has taken proactive steps to address fraudulent activities. These measures include:
- Conducting thorough investigations into reported scams.
- Collaborating with financial institutions to monitor transactions.
- Enhancing awareness campaigns to educate beneficiaries about potential fraud.
How does OPEKEPE work with international law enforcement to counter cross-border fraud?
OPEKEPE collaborates with international law enforcement agencies to combat scams that cross borders.
This cooperation includes sharing intelligence, coordinating investigations, and participating in joint operations to track and apprehend fraudsters.
