Greece Considers Shifting Farm Subsidy Control Amid Fraud Probe

The Greek government is "seriously considering" transferring control of its massive agricultural subsidy agency, OPEKEPE, to the independent tax authority amid a sprawling anti-corruption investigation.

The potential shift

follows a May 19 raid by European prosecutors who uncovered an alleged scheme involving fraudulent pastureland claims to siphon off European Union farming funds.

Deputy Prime Minister Kostis Hatzidakis told local media outlet SKAI that the government is seeking a "decisive" solution.

"AADE [Independent Authority for Public Revenue] is an authority whose impartiality and effectiveness are undoubted, and it has previously served as a payment body during the COVID-19 period," Mr. Hatzidakis said.

"There is serious consideration of assigning OPEKEPE’s responsibilities to AADE going forward."

The government is determined to make a fresh start, "one without compromises, and with strict oversight," the deputy prime minister added.

He underlined that entrenched bureaucracy and vested interests "are either confronted or we risk becoming their victims ourselves.”

OPEKEPE, which disburses approximately €3 billion in EU subsidies annually, has been under official supervision since last summer and was required to implement a restructuring plan to maintain its EU accreditation.

The May 19 raid by the European Public Prosecutor’s Office (EPPO), assisted by 20 officers from the Hellenic Police’s anti-corruption unit, reportedly revealed a widespread scheme.

An EU audit team is scheduled to visit OPEKEPE’s Athens offices in July, ahead of a decision on whether to maintain or revoke the organization’s certification.

Meanwhile, EU officials have proposed a financial correction of at least 10% across all agricultural funds allocated to Greece, a sum currently reaching €45 million annually. If OPEKEPE were to lose its certification, it would no longer be authorized to manage EU funds, potentially halting subsidy payments to Greek farmers.

While European sources suggest another certified body would eventually take over, establishing such an entity could cause significant payment delays.

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Greece Considers Shifting Farm Subsidy Control Amid Fraud Probe,