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(Luxembourg, 24 June 2024) – The European Public Prosecutor’s Office (EPPO) in Ljubljana (Slovenia) has filed an indictment at Ljubljana’s District Court against two individuals and one association, for subsidy fraud, abuse of position, and aiding and abetting. The suspects are alleged to have defrauded EU funds of almost €100 000.
According to the investigation, from 2017 to 2019, one of the suspects – who was then the director of the association – submitted several fraudulent payment requests to the Slovenian Ministry of Economic Development and Technology. It is understood that these requests falsely claimed that the association had incurred business costs eligible for co-financing, despite the director knowing that some of these costs were non-existent, and others ineligible.
The payment requests related to a project that had been awarded to the association through a public tender, aimed at developing innovative partnerships in sustainable tourism. It was 80% financed by the European Regional Development Fund (ERDF) and 20% by the national budget.
Based on the evidence, the other suspect assisted the director by signing and providing false documents for fictitious activities. These actions led to a total financial damage of €113 399.82, with €90 719.86 affecting the EU budget and €22 679.96 impacting the national budget. It is alleged that the suspects attempted to cause further damage, amounting to €29 780.26, but the ministry detected the fraud before disbursing these funds. The association is held criminally liable for the offences committed by its director, who is believed to have acted on its behalf and for its benefit.
The investigation also indicates that the director committed an additional criminal offence of abuse of position within the same association, by authorising payments for non-existent works, supported by false documents provided by the other suspect. It is understood that this additional fraud resulted in a loss of €40 497.97 to the association, while the second suspect illicitly gained €26 928.17.
Before the EPPO evoked this case in September 2022, the Slovenian police’s National Bureau of Investigation (Nacionalni preiskovalni urad – NPU) executed searches of premises at various locations in Slovenia, all based on the orders of the District Court in Ljubljana, and issued at the request of the Specialised State Prosecutor’s Office of the Republic of Slovenia. During the searches, various documents and electronic devices were seized.
According to the Slovenian Criminal Procedure Act (ZKP), the defence can still submit objections against the indictment to the court.
If convicted, the defendants face prison sentences of between one and eight years, while the association faces a possible fine, confiscation of property and forced liquidation.
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.