37 people detained in Greece over EU farm subsidy scandal

Greek police on Wednesday detained 37 people in an operation linked to a scandal involving the use of millions of euros worth of European Union (EU) agricultural subsidies, which, according to the Prime Minister, could have serious implications for the sector.

Officials made the arrests in Athens, Thessaloniki, Crete and elsewhere.The case has put conservative Prime Minister Kyriakos Mitsotakis under intense pressure, especially given his family's decades of political influence in Crete, which has been the recipient of much of the subsidies allegedly obtained by the scam.

The arrests follow raids on 13 October by the European Anti-Fraud Office (OLAF) at the offices of the Greek government agency OPEKEPE, which handles payments. 

The suspects were allegedly "involved in large-scale agricultural financing fraud and money laundering", the European Public Prosecutor's Office (EPPO) said in a statement published on Wednesday.

„The investigation has shown that this group is believed to have been active throughout Greece since at least 2018, with a clear hierarchical structure, clear functions, and regular activities until now“, – the report adds.

It is estimated that real farmers are missing out on €70 million in subsidies every year as a result of this fraud.

An EU investigation has revealed widespread misuse of funds in Opec offices. According to government figures, OPECEPE was paying out more than €3 billion annually, mostly in subsidies, to 680,000 farmers.

Cases under investigation include pastures declared in archaeological sites, olive trees at a military airport and banana plantations on Mount Olympus.

„Organised crime group“

According to the EPPO, investigators initially identified 324 beneficiaries of the subsidies. Of these, 42 are believed to be linked to this case and are considered to be current members of an organised crime group," the EPPO added. 

According to its estimates, the EU budget will suffer losses of more than €19.6 million.

Pressured on the matter, Mr Micotakis vowed to jail those responsible, whom he called thieves, and recover the funds.„It is clear that criminal investigations have been carried out here, taking advantage of the state's inaction in order to recover money to which they were not entitled,– he told radio „Skai“ on Wednesday.

He warned that if the scandal is not resolved, it could cast doubt on future EU funds for Greece. State auditors have already seized €22 million from more than 1,000 taxpayer accounts. "Whatever the political cost, I will not back down," the prime minister promised.

European prosecutors say the suspects, most of whom are not actually farming, „may have inflated livestock numbers to increase their entitlement to subsidies“.

„The suspects are believed to have issued fictitious invoices to conceal the illegal origin of the income, transferred funds through several bank accounts and mixed them with legitimate income“, – the EPPO said in a statement.

„Corruption acronym“

The scheme was introduced after the EU's Common Agricultural Policy (CAP) shifted subsidies from livestock to agriculture in 2014. At the time, the land register was very incomplete, leaving ownership rights in most of Greece unclear.

Farmers were therefore allowed to declare land they owned elsewhere in the country in order to claim part of the subsidies. Researchers say that non-farmers with political connections were also involved, lured by the prospect of easy money. 

Laura Kovesi, the European chief prosecutor, said during a visit to Athens this month that the Opekepe agency had become an acronym for "corruption, nepotism and clientelism".

According to OPEKEPE, around 80% of the total subsidies for pasture in 2017–2020 went to Crete. Mr Micotakis stressed that the theft of EU agricultural aid, which Greek officials estimate to be at least €23 million, began in 2016, before he came to power in 2019.

The government „has nothing to hide or fear from such checks“, he said last month.