Greek Farming Scandal – Gov. to Transfer Funding Power to Tax Authority

The decision comes amid growing concern in Brussels, with the European Public Prosecutor’s Office (EPPO) investigating what it calls one of the largest agricultural subsidy frauds in recent years

Greek Farming Scandal – Gov. to Transfer Funding Power to Tax Authority

The Greek government is moving forward with a major restructuring plan that would replace OPEKEPE (the Greek Payment and Control Agency for Guidance and Guarantee Community Aid) with the Independent Authority for Public Revenue (AADE) as the main body responsible for managing EU agricultural subsidies.

The planned shift, which is being shaped amid growing scrutiny from the European Union, will affect the administration of approximately €3 billion in annual European funds intended for over 680,000 farmers and livestock breeders in Greece.

Why the Change?
Government sources explain that the motivation behind the transition stems from the credibility and efficiency of AADE’s payment and auditing mechanisms.

“AADE, as a public payment authority, already possesses reliable control frameworks and mechanisms,” officials told the financial news outlet OT. “Farmers will submit their applications to AADE instead of OPEKEPE, which will then carry out necessary checks and data cross-referencing before making payments.”

EU Pressure and Fraud Allegations
The decision comes amid growing concern in Brussels, with the European Public Prosecutor’s Office (EPPO) investigating what it calls one of the largest agricultural subsidy frauds in recent years.

Investigations have revealed that fraudulent subsidies were distributed between 2017 and 2020, primarily to individuals who declared ownership or rental of grazing land they neither owned nor leased. In many cases, agricultural activities for which payments were claimed never occurred. A significant number of these cases were concentrated in Crete, but those involved often resided elsewhere in Greece.

So far, over 100 cases totaling €2.9 million in fraudulent payments have been uncovered, with additional investigations now targeting the 2020–2022 period. These revelations have triggered a broader assessment of OPEKEPE’s accountability and internal controls, leading to unannounced inspections at its offices in Athens and Crete by prosecutors and anti-corruption authorities.

Government Statement: Efficiency and Transparency
Deputy Prime Minister Kostis Hatzidakis confirmed the government’s intentions in a radio interview with Skai, stating:

“The government will proceed with legal certainty and effectiveness. The solution we choose must be decisive. AADE is an authority whose objectivity and efficiency have never been questioned and has already functioned as a payment authority during the COVID-19 period.”

Hatzidakis also acknowledged the systemic failures and deep-rooted bureaucracy within the public sector, emphasizing that: “We either confront the deep state and bureaucracy or become its victims.”

He added that the government will not hide anything regarding the findings, even hinting that EU funds may need to be returned due to irregularities. However, he stressed that fraudulent subsidies are not exclusively a Greek issue.

Source: tovima.com

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