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(Luxembourg, 21 November 2024) – Today, the European Public Prosecutor’s Office (EPPO) in Zagreb (Croatia) transmitted a case file to the Croatian Office for Suppression of Corruption and Organised Crime (USKOK), following a decision by the Croatian State Attorney General.
The EPPO has been investigating a criminal association constituted by eight Croatian citizens and two companies targeting procurements funded with EU money (in particular, the "NextGenerationEU" fund) as well as from the national budget. Concretely, the EPPO has been investigating criminal offenses of active and passive corruption, abuse of position and authority, and money laundering, committed as part of a criminal association. The facts are alleged to have taken place between June 2022 and November 2024 and all the offences are inextricably linked.
The EPPO planned to conduct searches and arrests on 19 November 2024. However, on 15 November 2024, the EPPO learned that USKOK obtained court orders for searches to be conducted against some of the suspects under investigation by the EPPO, and thus learned of the existence of an investigation conducted by national authorities into facts falling within the EPPO’s competence.
In line with the applicable national criminal procedural law, the EPPO formalised its investigation on 15 November 2024.
On the same day, the EPPO exercised its powers under the EPPO Regulation and asked to take over the case opened by USKOK.
In reply, USKOK turned to the State Attorney General of the Republic of Croatia to settle a conflict of competence in accordance with the EPPO Regulation, as implemented by the applicable Croatian law.
While on substance the EPPO strongly disagrees with the decision of the State Attorney General of the Republic of Croatia, it abided by his ruling, in accordance with the EPPO Regulation, and relinquished its investigation to USKOK.
Today, in response to these events, the European Chief Prosecutor addressed a formal letter to the European Commission, underlining Croatia's systemic challenges in upholding the rule of law, in line with Article 4 of Regulation (EU) 2020/2092 of 16 December 2020 on a general regime of conditionality for the protection of the budget of the European Union (Conditionality Regulation).
Key concerns include:
- The designation of the State Attorney General as the authority to resolve such conflicts is in contravention of EU law.
- The State Attorney General, tasked with resolving conflicts of competence, further aggravated these circumstances by basing his decision solely on USKOK's interpretation, without giving the EPPO the chance to express its position, and thus undermining the impartiality of the conflict resolution.
- USKOK did not report its investigation into an EU-funded project, violating its obligations under the EPPO Regulation.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.