Greece is at the center of one of the largest fraud cases in Europe’s agricultural sector where Greek citizens received agricultural subsidies since 2017 for pastures they did not own or lease, or for farming activities that never took place, according to an investigation conducted by Politico.
The European Public Prosecutor’s Office (EPPO) is investigating numerous cases of improper payments, which carry a price tag of up to €45 million annually. It is considered one of the most significant agricultural fraud scandals in recent EU history, says Politico.
The investigation is not only focusing on fraudulent beneficiaries but also on the possible involvement of state authorities, particularly officials within OPEKEPE, the agency responsible for distributing EU agricultural subsidies in Greece.
OPEKEPE is a private legal entity operating since 2001 for the public interest which is supervised by the Ministry of Rural Development and Food- and is the Greek Payment Authority of Common Agricultural Policy (C.A.P.) Aid Schemes.
Politico says that the fraud was initially uncovered by Paraskevi Tycheropeoulou, head of OPEKEPE’s Internal Audit. However, instead of an investigation being launched, she was removed from her position, denied access to the agency’s databases, and locked out of her office.
Tycheropeoulou’s lawyer, Antonis Vagianos, told Politico that her findings revealed a vast network of individuals using fraudulent land ownership declarations to illegally collect EU subsidies.
Every time OPEKEPE authorities attempted to act against the fraud, their leadership was replaced by successive Ministers of Rural Development. Over the past five years, OPEKEPE has changed six presidents, with those who tried to expose the scandal reportedly being forced to resign, asserts Politico.
The Fraud Scheme
The fraud began in 2017 when changes in EU law expanded the definition of eligible grazing land to include bushlands and forested areas. This nearly doubled the amount of eligible land in Greece, creating opportunities for abuse.
According to Politico, the initial access to these new land data was granted to OPEKEPE officials and technical firms working with the agency. Soon, applications for subsidies were being filed by individuals who lived hundreds of kilometers away from the land they claimed to own or lease. Applicants were not required to provide ownership documents but only a reference number on a form.
Internal audit reports from OPEKEPE show that the same grazing lands were declared by different “owners” each year, but without duplicate registrations, suggesting that someone inside the agency was coordinating the system to avoid detection.
A former OPEKEPE official told Politico that such a scheme could not have been organized without someone inside the agency providing information on available land and ensuring that there were no conflicts.
The majority of suspicious applications came from Crete, which in 2020 received two-thirds of Greece’s total agricultural subsidies. In some cases, beneficiaries even received subsidies for land outside Greece. The investigative outlet Inside Story uncovered 34 cases in which applicants claimed land in countries like North Macedonia, which is not even part of the EU.
The EPPO has been investigating the case since 2021 and has already brought 70 cases before Greek courts. In Rethymno, convicted individuals have received sentences ranging from 12 to 24 months in prison. Two additional cases are set to be tried on February 19. In another case, a former official from the Ministry of Rural Development and his family are accused of claiming EU subsidies for 450 hectares of mountainous land near the Albanian border.
The European Commission Puts Pressure on Greece
In March 2024, the EC fined Greece €283 million for mismanaging EU subsidies. The Commission has warned that without serious corrective measures, Greece risks losing control over managing EU agricultural funds. Minister of Rural Development Konstantinos Tsiaras has placed OPEKEPE under stricter supervision. However, he has yet to approve Tycheropeoulou’s reassignment to the EPPO, despite approval from the Greek Justice Ministry.
The scandal has also taken on a political dimension, with accusations that successive Ministers of Rural Development removed OPEKEPE leaders whenever they attempted to investigate the fraud. PASOK-KINAL leader Nikos Androulakis criticized the government in parliament, questioning whether a retired judge had been appointed to manage the case for political reasons.
The investigation remains ongoing, and further cases are expected to be brought before Greek courts in the coming months.
Panhellenic Association of OPEKEPE Employees’ Response
The association issued a statement rejecting claims that the agency is responsible for the fraud. They emphasized that OPEKEPE has been an EU-accredited payment agency since 2002 and manages approximately €3 billion annually, serving 640,000 beneficiaries and monitoring 6 million land parcels. The agency denies any direct involvement in fraud, stating that it follows policies set by the EU and the Greek government rather than making independent decisions.
However, the association acknowledged that long-standing deficiencies in Greece’s land registration system have contributed to the fraud. They criticized media reports for tarnishing OPEKEPE’s reputation and warned that discrediting the agency could benefit private interests seeking to take over the management of agricultural subsidies.
The association called for increased resources, modernized technology, and additional staff to prevent future fraud. It urged policymakers to engage in a constructive dialogue to improve the agency’s operations and ensure Greece retains control over its agricultural funding.
As the investigation continues, the European Public Prosecutor’s Office is expected to bring additional cases to court, increasing pressure on Greek authorities to implement reforms and prevent further misuse of EU subsidies.
