The European Public Prosecutor’s Office (EPPO) in Croatia on Thursday initiated an investigation against two individuals and one educational institution suspected of subsidy fraud and document forgery.
The two suspects were arrested on Wednesday at the EPPO’s request, following investigative actions conducted in cooperation with the Zagreb Police Department.
It is understood that a nursery school in Zagreb owned by one of the suspects received €255 257.58 in funding, co-financed by the European Social Fund (ESF) at the rate of 85% and the Croatian budget at 15%. The funds were intended to improve services for children through extending the nursery’s working hours, developing special teaching programs and training teachers, but there are reasons to believe that they may have been misused.
The investigation revealed that, on seven occasions, the owner and the school pedagogue allegedly compiled multiple false reports on the implementation of the project, which they then submitted to the Croatian Employment Service to justify their requests for payment support. The Service approved the first six reports, before a report was filed suggesting there may have been wrongdoing.
In addition, there are suspicions that, every month, the nursery school owner required the staff to hand over a portion of their salaries, which were paid out of the allocated grant, for a total of €31 190.
All persons concerned are presumed innocent until proven guilty in the competent Croatian 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.
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