The European Public Prosecutor’s Office (EPPO) has initiated urgent evidence-gathering raids across several Croatian counties targeting nationals suspected of corruption, bribery, subsidy fraud, and document forgery involving EU agricultural funds. This latest investigation, reported on 6 May 2026, underscores ongoing concerns over misuse of European Agricultural Fund for Rural Development (EAFRD) subsidies, following prior indictments and convictions in similar cases.
Latest EPPO Investigation Details
On 6 May 2026, the European Public Prosecutor’s Office (EPPO) in Zagreb announced evidence-gathering activities in several counties as part of a probe into possible corruption and fraud involving EU agricultural funds, as stated in their official release.
The investigative measures target several Croatian nationals suspected of abuse of office and authority, receiving and offering bribes, subsidy fraud, and forgery of documents, all within a criminal association detrimental to the EU’s financial interests.
These actions were carried out by the Sisak-Moslavina Police Department, supported by the Police National Office for the Suppression of Corruption and Organised Crime, and assisted by police departments in Lika-Senj, Karlovac, Zagreb, and Virovitica-Podravina.
No further details were disclosed to avoid endangering the proceedings, according to the EPPO statement.
As reported in a Reuters dispatch published by Global Banking and Finance Review, police were gathering evidence in central Croatian counties, with the probe focusing on activities harming EU financial interests.
Croatian Government Response
Croatia’s Agriculture Minister David Vlajcic responded to the investigation, stating that his ministry has initiated changes in the Agency for Agriculture Payments and the ARKOD system for recording agricultural land use to enhance transparency and control over EU funds.
“Our goal is to assure that each euro of public money comes to those who are entitled to it,”
Vlajcic said in a statement to Reuters, as quoted by Global Banking and Finance Review.
He added that the payment agency has been reporting irregularities encountered during its work, enabling agencies like the EPPO to act appropriately. “This is the proof that we are determined to introduce order in the system of the farm subsidies,” Vlajcic emphasised.
Prior EPPO Cases in Croatia’s Farm Subsidies
The current probe builds on a pattern of investigations into agricultural subsidy fraud. On 3 July 2025, the EPPO in Zagreb filed an indictment against two Croatian citizens for fraud involving non-refundable subsidies co-financed by the EAFRD up to 85%, as detailed in the EPPO’s media release.
Between October 2021 and October 2022, the first defendant—the actual manager of one company and owner/manager of another—along with the second defendant, the appointed commercial manager of the first company, allegedly concealed their companies’ connections to submit fraudulent applications to the same public call, violating regulations that barred related entities.
They requested €497,976 for one company and approximately €440,000 for the other, exceeding the €500,000 maximum public support limit and providing false information for an unfair tender advantage, aiming for nearly €940,000 total, which the Paying Agency for Agriculture, Fisheries and Rural Development denied upon detecting fraud.
All persons are presumed innocent until proven guilty in Croatian courts, the EPPO noted.
In another case, as reported by the Organized Crime and Corruption Reporting Project (OCCRP), the EPPO probed fraud from February 2015 to October 2023 where the primary suspect, identified by Croatian media as Vanja G., an entrepreneur from Rijeka, conspired with three others to secure over €1.5 million in subsidies via a fraudulent request under the ‘Support for investments in agricultural holdings’ call, valued over €2.5 million and co-financed 85% by EAFRD and 15% by Croatia’s state budget.
Vanja G. allegedly fabricated financial capacity to cultivate fig trees on Jakljan island near Dubrovnik, with EPPO investigators using a drone to film the plantation, which experts later deemed unjustified for the funds disbursed by the Paying Agency.
She reportedly withdrew portions in cash and funnelled money to affiliated companies to obscure flows, causing over €1.5 million in damage to EU and national budgets, according to EPPO.
An EPPO Facebook post highlighted an investigation into an individual entrepreneur suspected of fraud for up to €487,000 in agricultural funds.
Additionally, on 16 October 2025, six individuals and one company were convicted following an EPPO probe for subsidy fraud and document forgery in EU funds for pig farming welfare improvements, with the company receiving over €5.4 million, €4.7 million fraudulently.
Broader Context of EU Fund Misuse
This scandal echoes issues elsewhere, such as in Greece, where last year European prosecutors charged dozens of stockbreeders with faking pastureland ownership to claim millions in EU subsidies, aided by state employees and politicians, prompting resignations, a record EU fine for mismanagement, and immunity lifts for 13 lawmakers, as noted in Global Banking and Finance Review.
Croatia has seen related probes, including a 2023 OCCRP-reported arrest of four for EU subsidy fraud and money laundering, and a 2025 EPPO-ordered raid on health tenders for bribery and fund misuse targeting Varaždin hospitals.
Yahoo UK News echoed the 6 May probe, noting suspicions against Croatian nationals for abuse of office, bribes, fraud, and forgery.
Implications for EU Funds in Croatia
These investigations highlight vulnerabilities in Croatia’s management of EAFRD funds, intended for rural development but repeatedly targeted by fraud schemes involving false applications, related entities, and official complicity. The Paying Agency’s role in detecting some irregularities, as in the 2025 indictment, demonstrates partial safeguards, yet systemic reforms like ARKOD updates are deemed necessary by Minister Vlajcic.
EPPO’s persistent actions affirm its mandate to protect EU financial interests across member states. As cases progress through Croatian courts, public scrutiny on transparency in agricultural payments intensifies, potentially influencing future subsidy allocations.
The absence of named suspects in the latest probe preserves judicial integrity, but prior revelations like Vanja G.’s case illustrate the scale—from hundreds of thousands to millions in alleged damages.
Journalists from Reuters, including Daria Sito-Sucic and Angeliki Koutantou, with editing by Joe Bavier and Nick Zieminski, provided key on-the-ground reporting for the Global Banking and Finance piece.
OCCRP’s coverage, drawing from Index news outlet, added specifics on drone surveillance and island plantations.
EPPO’s direct statements remain the authoritative source, emphasising presumption of innocence.
