Greek agricultural payments under EU investigation for systemic corruption

EU investigators recently raided the offices of the Greek agency responsible for distributing European Union agricultural funds, which is at the centre of a high-profile fraud scandal.

The inspection at the offices of the OPEKEPE payment agency, conducted by agents from the European Anti-Fraud Office (OLAF), lasted eight hours, Caliber.Az reports citing POLITICO.

Two Greek officials, who wished to remain anonymous to discuss the matter, said that investigators are expected to continue today, requesting documents regarding the agency’s organisational structure and contracts.

A representative of OLAF declined to comment on the raid, citing the confidentiality of the investigation and potential subsequent judicial proceedings.

This year, widespread fraud aimed at deceiving the EU shook Athens after many Greeks improperly received agricultural subsidies for pastures they did not own or for agricultural work they did not perform.

Politico first reported the scheme in February.

Several ministers and their deputies resigned due to alleged involvement in the scandal, which is also being investigated by the European Public Prosecutor’s Office. The EU has already fined Athens €400 million after uncovering evidence of systemic violations in handling agricultural subsidies from 2016 to 2023.

The European Public Prosecutor’s Office previously raided OPEKEPE headquarters in May. Greece risks losing EU agricultural funds if it does not present an improved action plan to prevent embezzlement resulting from corruption. The initial deadline expired on October 2 but has now been extended to November 4.

“The Commission has not received the revised action plans from the Greek authorities,” said a European Commission spokesperson in response to a POLITICO inquiry.

Meanwhile, last week, the Greek government announced the retroactive cancellation of organic farming subsidies for 2024 after being overwhelmed with fraudulent applications.

The Organic Farming and Animal Husbandry Program was scheduled to run from June 2024 to June 2027, with a budget of €287.5 million. More than 60,000 farmers applied for subsidies under this program, and it remains unclear whether 2025 payments will be made.

The European Commission has not yet received formal notification of the government’s decision to halt payments.

“The Commission expects to be informed by the Greek authorities whenever EU agricultural funds are withheld, rerouted, or intended to be. As of Oct. 13, the Commission has received no such notification,” said the EC spokesperson.

By Jeyhun Aghazada