EPPO: Police Operation 'Karpat' Linked to EU Funds Fraud (2)

Bratislava, July 21 (TASR) - This week's police operation nicknamed the Karpat [named after an eponymous brewery-ed.note] concerns fraudulent drawing of EU Funds to the tune of millions of euros for reconstruction of a brewery and also features the criminal investigation of two state clerks from the Slovak Innovation and Energy Agency, according to a press release of the European Prosecutor's Office (EPPO). The police crackdown took place on Wednesday, July 19, at several locations in western Slovakia and ended with arrests of six individuals. Following the interrogations, they were released according to instructions from the EPPO and will face criminal charges. The EPPO is investigating a company that applied for financing under the EU Funds with a project of the brewery reconstruction and the introduction of innovative processes for beer production. To that end, owners of the brewery signed a contract with the Slovak Innovation and Energy Agency to acquire a financial subsidy of €7.8 million, 45 percent of which was to be co-financed by the EU. On October 11, 2017, the brewery owners launched a public tender on the project, but according to the evidence at the EPPO's disposal, the tender had been manipulated so as to award the bid to a specific firm beforehand. Thus facing charges are the brewery owner, executive official and accountant as well as an official from the company that won the tender. Also being investigated are two clerks from the Slovak Innovation and Energy Agency and three legal entities. All the defendants have been indicted with a public tender fraud, loan fraud and money laundering. According to the police, an organised group was misusing the EU Funds on an extensive scale in 2016-19. mf/mcs