(Luxembourg, 17 January 2025) – The European Public Prosecutor’s Office (EPPO) in Iași (Romania) has filed an indictment against two individuals and one company, suspected of misusing EU funded tailoring equipment and unlawfully retaining subsidies. The case, involving approximately €196 000 in EU funds, has been referred to the court of Iași.
According to the investigation, the de facto administrator and key decision-maker of the company, along with the statutory administrator, defrauded the European Agricultural Fund for Rural Development (EAFRD) in a project aimed at enhancing the company’s operations by acquiring machines used to tailor clothing.
Contrary to the legal and contractual obligations tied to the financing agreement, the de facto administrator is suspected of having sold all the equipment purchased with EU funds during the contract’s validity period, instead of using them to manufacture clothing.
Furthermore, he allegedly did not inform the Romanian Agency for Financing Rural Investments (AFIR), the managing authority overseeing the funds, about the sales. After having sold the machines, the company in question was dissolved and deregistered, and no steps had been taken to repay the EU financing, as legally required.
The total loss to the EU budget amounts to around €196 000 (893,304.73 RON). To ensure the recovery of the damage, real estate worth €620 000 has been seized, as under Romanian law, assets belonging to the suspects can be seized up to the total estimated damage, with each suspect potentially liable for the entire amount.
The defendants are presumed innocent until proven guilty in the competent Romanian courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.