The European Public Prosecutor’s Office (EPPO) in Romania is investigating following suspected procurement and subsidy fraud involving non-repayable EU funding to support small farms and young farmers.
Searches were carried out in Dâmbovita County on 13 May with one suspect arrested as a result, the EPPO has said.
The suspected fraud involves 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.
An authorised consultant allegedly submitted false and inaccurate documents in 237 projects presented to the contracting authority, the Agency for Rural Investment Financing (AFIR), according to the investigation.
“The projects were submitted on behalf of 237 legal entities, including individual enterprises, family businesses, authorised individuals and companies,” the EPPO said.
The allegedly false documents were used to show compliance with the funding conditions and to fraudulently receive non-repayable EU financial support.
According to the EPPO, the total value of the requested funding was worth approximately €5.7m, while the estimated damage to the EU budget is approximately €3.5m.
The consultant who is the main suspect was taken in on 13 May and arrested the following day by the Bucharest Tribunal, at the request of the EPPO.
Three others have been indicted and placed under judicial control.
Additionally, 22 individuals are under investigation for allegedly agreeing to allow fraudulent funding applications to be submitted in their names, in exchange for commissions ranging from 10% to 15% of the total project value.
If the defendants are found to be guilty, they could face prison sentences of up to 10 years.
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