Latest news with #EuropeanPublicProsecutor'sOffice
Euractiv
01-08-2025
- Business
- Euractiv
EU's top prosecutor slams Bucharest for failing to report VAT fraud
BUCHAREST – European Chief Prosecutor Laura Codruța Kovesi has criticised Romanian authorities for failing to properly detect and report VAT fraud, despite the country having the highest VAT collection gap in the EU. According to the latest European Commission report, Romania's VAT shortfall stands at 30.6%, five times higher than the EU average of 6%. "Over 90% of this can only be explained by fraud. Unfortunately, the detection and reporting of such crimes - at least to the European Public Prosecutor's Office - remains extremely low," Kovesi, the former head of Romania's National Anticorruption Directorate (DNA), told local newspaper Libertatea in an interview. In 2024, out of nearly 400 EPPO cases in Romania, only 12 involved VAT fraud, said Kovesi. Of those, 'only three or four' were reported by the national tax authority ANAF, while the rest came from other EU member states, she added. 'There are only two explanations: either they don't want to find out, or it's bad faith… There's no other explanation," Kovesi said. The EU's top prosecutor also warned that international mafias are exploiting these enforcement gaps. "Romania is fertile ground not only for the Italian mafia, but also for the Chinese mafia," she said, describing the trend of VAT fraud as a "worrying phenomenon" across Europe. 'Organised groups and mafias are no longer national, they are highly complex, operating both inside and outside the European Union," she said. "If one country starts to crack them down, they simply move to a place where no one bothers them." (de)
Agriland
31-07-2025
- Business
- Agriland
Court in Spain Delivers Convictions for E3 8m Agricultural Subsidy Fraud
The Central Criminal Court of Spain has handed down three convictions for a €3.8 million subsidy fraud involving agricultural funds. A company and two of its legal representatives were convicted following a trial that came to court following an investigation by the European Public Prosecutor's Office (EPPO) in Madrid. The Central Criminal Court of Spain sentenced two of the defendants to one year's imprisonment and a fine of €3 million. The court also fined the company €3 million and imposed a three-year ban on receiving public subsidies or public funds. According to the EPPO the company will have to reimburse €2 million in funds "illegitimately obtained, and the company directors were held to be joint and severally liable". The EPPO, which is the independent public prosecution office of the EU, has detailed that the company in question applied and obtained a subsidy from the Spanish Agricultural Guarantee Fund (SAGF) for the improvement of its facilities for the production of fruit and vegetables. "Following this, the defendants also requested a loan from the Catalan Institute of Finance and the Directorate General of Industry, in clear breach of the terms and conditions of the subsidy, which established that the funding could not be cumulated with other grants, " the EPPO stated. According to the public prosecution office the verdict, which was issued on June 30, 2025, "marks the first judicial decision delivered after a trial in a case investigated by the EPPO in Spain", following a series of prior convictions obtained through plea agreements, and is still subject to appeal. Meanwhile earlier this month the EPPO in Zagreb, Croatia, filed an indictment against two Croatian citizens on suspicion of fraud involving agricultural subsidies. An investigation showed that, between October 2021 and October 2022, one of the defendants - the manager of one company and owner and manager of another - together with the second defendant - the appointed commercial manager of the first company - fraudulently claimed non-refundable subsidies co-financed by the European Agricultural Fund for Rural Development (EAFRD) to up to 85%. .
The Sun
16-07-2025
- Politics
- The Sun
Croatia ex-health minister charged in $860k corruption case
ZAGREB: Croatia's anti-corruption prosecutors have formally charged former Health Minister Vili Beros and seven others with multiple offences including bribery, money laundering, and abuse of power. The case involves alleged irregularities in health equipment procurement worth over $860,000 (€740,000), with Beros suspected of personally receiving $87,000 (€75,000). Prime Minister Andrej Plenkovic dismissed Beros following his arrest last November, underscoring ongoing corruption challenges in the Balkan nation. The indictment accuses the group of operating a criminal network engaged in unlawful favouritism and influence peddling. The European Public Prosecutor's Office initially investigated the eight suspects before Croatian authorities took over the case. Beros becomes the second minister arrested under Plenkovic's government after former construction minister Darko Horvat faced similar charges in 2022. Over a dozen ministers from Plenkovic's HDZ party have resigned since 2016 amid corruption allegations. The scandal has intensified public anger in Croatia, where healthcare system struggles persist. Plenkovic narrowly survived a December no-confidence vote linked to graft controversies. – AFP
Euractiv
09-07-2025
- Business
- Euractiv
Former Croatian minister charged for spending EU money on private dinners
A former Croatia minister of r egional development and EU funds , believed to be Gabrijela Žalac, has been charged with embezzlement on 9 July, less than a month after she was found guilty of abuse of office on a separate charge. The European Public Prosecutor's Office (EPPO) filed an indictment against the former minister, who is alleged to have partially paid private restaurant visits with her official representation budget on at least nine occasions between May 2017 and July 2019. The prosecutor's office suggests that the expenses amount to €9.732 of which 85% is believed to have been covered by EU funds, the remainder by Croatian taxpayers. During the investigation – which started in December 2023 – the defendant has paid the full amount as compensation for damages, according to the EU body that has the power to investigate and prosecute crimes affecting the EU's financial interests. Gabrijela Žalac, who served as Croatian minister for regional development and EU funds between 2016 and 2019, is reported to be the minister in question. 'For this criminal offence, she can be sentenced to between 6 months to five years of imprisonment,' EPPO press offices told Euractiv on Wednesday. Last month, Žalac was sentenced to two years in prison by the County Court of Zagreb after pleading guilty to abuse of office and trading in influence, following a 2022 EPPO indictment. The case involved a rigged 2017 public procurement deal worth €1.73 million, benefiting favoured companies through illegal procedures. Despite the tender being annulled, the contract was still awarded, causing at least €1 million in EU budget damage. The former minister then paid €200,000 in partial compensation under a plea deal. The Croatian Ministry for Regional Development and EU Funds did not immediately respond to a request for comment. Elisa Braun contributed reporting. (vib)
Yahoo
30-06-2025
- Business
- Yahoo
EU Cracks Down on $700M Customs Fraud Ring Tied to Chinese Imports
A coordinated raid by the European Public Prosecutor's Office (EPPO) across four major cities earlier this week saw the arrest of 10 suspects—including two customs officers—for fraudulently importing goods from China as part of a wider crime ring responsible for 700 million euros ($820 million) in total damages. The customs fraud scheme was allegedly conducted mainly through Greece's Port of Piraeus, and enabled the perpetrators to evade customs duties and the E.U.'s value-added tax (VAT). More from Sourcing Journal China Trade Deal Solidified As Talks With Canada Devolve Tariffs Upend Fashion Sourcing and Disrupt Cash Flow Amid Widening Trade Gap FedEx Faces $170M in Tariff Headwinds as US Cracks Down on De Minimis Textiles, footwear, e-scooters and e-bikes are among the goods flooding the E.U. market that have been seized as part of the raid, called 'Calypso' by the authorities. Identities of the suspects have not been released. The raids took place across Athens; Madrid; Paris; and Sofia, Bulgaria; and encompassed 101 searches at the offices of customs brokers, companies controlled by the organized criminal groups under investigation and the premises of the suspects. The bust extended to offices of tax advisors, lawyers, accounts and transportation companies. As part of the raids, law enforcement agents seized 5.8 million euros ($6.8 million) in different currencies, including Hong Kong dollars, euros in digital wallets and cryptocurrencies. Greek authorities have conducted more than 20 raids, including the home of the alleged ringleader, a Chinese national, according to a report from Athens-based publication eKathimerini. Freezing orders were also issued in the country to seize real estate, boats and bank accounts. And in Spain, 11 real estate assets were also seized, as well as 27 vehicles and luxury items such as bags, watches and jewelry. Across the four major cities, law enforcement also confiscated 7,133 e-bikes and 3,696 e-scooters, as well as 480 containers for further checks and verification in the Port of Piraeus. Firearms and cold weapons were found and seized in the houses of three of the suspects. According to the EPPO, the alleged criminal enterprise is mainly controlled by Chinese nationals, with several separate organizations handling different links of the scheme, including distribution to the market's different member states, as well as sales to end customers. The criminal activity focused on exploiting Customs Procedure 42 (CP42), a mechanism designed to simplify cross-border trade by exempting importers from paying VAT in the country of import, if the imported goods are subsequently transported to another E.U. country. A network of professional enablers including customs brokers, service providers and accounting firms helped facilitate the initial clearance at the Piraeus customs entry point. To evade customs duties, the actors would use false documents to either undervalue or misclassify the goods, and produce false invoices and transport documents to conceal the real destination of the goods. This enabled the actors to evade CP42, as the goods were not forwarded to the declared destinations. Instead, they stored the imports in secret warehouses controlled by the separate criminal organizations and distributed them via illicit channels. From there, the organizations recruited a large network of sham companies used for the fake sales and deliveries to hide the fraudulent chain. This allowed the groups to sell the products at a competitive price—and for cash—since the VAT remained unpaid and customs duties and anti-dumping fees are largely evaded. When the final sale is made, the groups launder the money and send the profits back to China. The investigation was carried out across 14 countries: Bulgaria, China, Czechia, Denmark, France, Germany, Greece, Hungary, Italy, Poland, Portugal, Slovakia, Slovenia and Spain. Of the 700 million euros ($820 million) in total estimated damages, more than 250 million euros ($292.5 million) came from evaded customs duties—which contribute directly to the E.U. budget. Another nearly 450 million euros ($526.5 million) came from the unpaid VAT. The total damage caused by the fraudulent scheme under investigation is likely much higher, the EPPO says. The Port of Piraeus is majority owned and operated by China-based Cosco Shipping. EPPO did not indicate whether there were any ties to the Chinese national suspect arrested in Greece.
