ATHENS — Greek authorities ministers and senior officers are suspected of colluding in an enormous farm assist rip-off to defraud the European Union of a whole bunch of hundreds of thousands of euros.
However regardless of being named as suspects by European prosecutors, they’re prone to evade justice as a result of Prime Minister Kyriakos Mitsotakis is obstructing a full-scale investigation.
“Greece in 2025 doesn’t want scandal-mongering, however truths,” Mitsotakis advised parliament final week, in an effort to justify that call. “We search a definitive answer to the issue.”
The case presents damning proof that — after three bailouts and a monetary disaster that lasted over a decade — Greece nonetheless hasn’t cleared out the rot.
The European Public Prosecutor’s Workplace (EPPO) pursued dozens of instances during which Greeks obtained EU agricultural funds for pastureland they didn’t personal or lease, or for agricultural work they didn’t carry out, depriving reputable farmers of the funds they deserved. POLITICO first reported on the scheme in February.
A 3,000-page file despatched to the Greek parliament contains dozens of wiretap transcripts during which individuals apparently focus on the best way to evade controls on payouts of EU farm subsidies in order that social gathering allies and buddies may revenue.
A minimum of 5 present or former ministers and one other 10 MPs could possibly be implicated, in line with the transcripts.
The message from the conversations is obvious: We should defend and pay our personal individuals; the inspectors within the state company that handles the EU funds must go; and we have to thwart the investigating prosecutors.
The Mitsotakis authorities — due to the bulk loved by his center-right New Democracy social gathering and a authorized quirk that solely permits the Greek parliament to prosecute authorities ministers — has chosen to not examine its personal individuals.
Unlawful assist
The EPPO file describes a “prison group” comprising officers from Greece’s company for distributing EU subsidies, OPEKEPE, together with people and MPs who illegally obtained EU agricultural subsidies, in line with officers who’ve seen it.
In a 36-page observe in English connected to the file, EPPO states that officers at OPEKEPE and the Agriculture Ministry, along with individuals in enterprise, “acted in an organized method in an effort to set up a system of non-controls and procure or facilitate the receipt of unlawful assist.”
“The extent of this fabrication of fee entitlements and the entire harm to EU funds has not but been absolutely assessed,” EPPO notes. “However, at this state of play of the investigation, there are cheap grounds to consider that it has been a large-scale scheme.”
Though the extent of damages has not been assessed, Brussels has ordered Greece to forfeit almost €400 million in funding — over a fifth of the direct funds it had been resulting from obtain subsequent yr.
EPPO mentioned two former agriculture ministers — Lefteris Avgenakis and Makis Voridis, who later served as state minister reporting on to the prime minister — ought to face additional authorized investigation over the suspected misappropriation of EU funds. They each reject the claims.
In keeping with the file, the then-president of OPEKEPE, Grigoris Varras, described the issue with the faux pastureland in two letters to Voridis in 2020. He was compelled to resign by Voridis, who remained in authorities till this June when he too resigned after the EPPO submitted its file to parliament.
In a dialog on Sept. 24, 2021 between one other former president of OPEKEPE, Dimitris Melas, and a businessman within the sector, Melas describes how individuals had declared pastures so distant and rocky that they had been successfully “on the shores of Normandy” the place “not solely grazing is inconceivable, however cockroaches can’t even survive.” They go on to say that 800 such “beneficiaries” had made related purposes.
EPPO says: “From the dialog it’s evident that though the president of OPEKEPE is conscious of the fraud, he isn’t prepared to take the authorized measures for the withdrawal of the help, however he’s looking for a ‘political’ administration of the issue and is prepared to provide the perpetrators recommendation in an effort to maintain the cash unduly obtained.”
Melas disputes that account. “The fact is totally reverse to what’s described. I don’t know if this is because of poor high quality of the connection or unsuitable description,” he advised POLITICO. He mentioned that he was describing a unsuitable apply that he seen being employed by farmers whose funds had been ultimately blocked.
Melas is at present on trial for misappropriation of a doc and breach of responsibility. He denies any wrongdoing and says he has by no means in his profession felt the necessity to cover any paperwork.
Political strain
A separate observe by one other former OPEKEPE president, Evangelos Simandrakos, can be a part of the EPPO file.
He blocked 1000’s of suspect funds as a result of they wanted additional investigation. He was quickly kicked out by Avgenakis, then agriculture minister.
In a observe despatched on Nov. 4, 2023, to the state minister and chief of workers to the prime minister, obtained by POLITICO, Simandrakos described why he determined to dam the greater than 9,000 funds. He warns that OPEKEPE is already underneath investigation and may quickly lose its accreditation from the European Fee. Simandrakos says he’s decided to remain on at OPEKEPE regardless of strain from Avgenakis to resign.
He then had a gathering with the three state ministers underneath the prime minister, who, as he describes, supported his alternative to not resign. In a second letter on Dec. 8, 2023, he describes public assaults towards him by Avgenakis and the way this has drawn the eye of the European investigators. Weeks later, at a gathering on Dec. 28, 2023, the identical individuals requested for his resignation.
“Unable to resist the political strain, I submitted my resignation and was compelled to depart the group,” Simandrakos mentioned in his testimony to EPPO.
Avgenakis saved his ministerial put up and all of the blocked accounts had been launched for fee.
On Feb. 2, 2024 Mitsotakis advised parliament that every one farmers could be paid by OPEKEPE by April.
“Everybody knew, Mr. Mitsotakis himself knew,” New Left chief Alexis Charitsis mentioned in parliament. “It’s a pyramid of corruption that has just one individual at its prime ― Mitsotakis.”
Chilly espresso
A typical instance is the case of Giorgos Xylouris, a farmer from Crete and member of New Democracy who’s talked about within the EPPO case file underneath the nickname “Frappé” (“Iced Espresso”).
Mitsotakis’ late father, former Prime Minister Konstantinos Mitsotakis, was greatest man on the marriage ceremony of Xylouris’ brother, in line with native media. A dinner after the annual memorial service for Mitsotakis’ father was held at Xylouris’ restaurant.
Xylouris has additionally been photographed with the Greek prime minister at conferences in Crete. And high-ranking New Democracy officers dined at his household’s house, throughout campaigning for final yr’s European elections.
“Xylouris and members of his household had been included in a number of complaints, in line with which they declared extreme and false numbers of animals, in addition to eligible areas outdoors of Crete, on the islands of Chios and Paros,” the file describes.
Nonetheless, when his funds had been blocked by Simandrakos, each OPEKEPE Vice-President Kyriakos Babasidis and Agriculture Ministry Secretary Normal Giorgos Stratakos insisted that members of his household be paid.
The blocked Taxpayer Identification Numbers of the household weren’t paid in 2024, following an data observe (Nov. 30, 2023) from OPEKEPE inspector Paraskevi Tycheropoulou, who blew the whistle on the obvious rip-off. Xylouris claimed that Babasidis had advised him that he couldn’t be paid, “if Tycheropoulou doesn’t swallow the data observe.”
In intercepted communications, Xylouris seems to carry Tycheropoulou answerable for the inspections towards him, EPPO describes. He tells Stratakos that his household could possibly be compelled to return €200,000. He asks Stratakos if “they did one thing concerning the Tycheropoulou difficulty” — apparently implying steps to take away her from her job at OPEKEPE.
In one other dialogue with the ministry’s secretary basic, Xylouris complains concerning the funds and says — seemingly light-heartedly — that if he had killed Tycheropoulou he would have paid a great lawyer, be out of jail and be higher off. He additionally expresses curiosity in changing a European delegated prosecutor from the Athens EPPO workplace.
Responding to those findings, Xylouris has mentioned that he by no means requested to unblock the funds, he knew he was underneath surveillance and the conversations have been edited.
“I’m not able to rearrange to interchange the prosecutor. If I had such a chance, I’d have requested to be paid and to not be held hostage for 3 years by audits,” he advised Parapolitika radio.
Witness intimidation
Stress on key witnesses who uncovered the rip-off continues unabated.
In 2020, an OPEKEPE worker from Crete was one of many first to note the irregularities and inform the group’s basic supervisor.
Inner paperwork obtained by POLITICO describe threats made towards him and his kids. This worker sought safety from the judicial authorities — however OPEKEPE responded with disciplinary motion and a two-month wage suspension.
Tycheropoulou, the OPEKEPE auditor, already faces three disciplinary actions and two lawsuits. Her recordsdata and pc have been confiscated, whereas her locker was damaged into. Regardless of the publicity, earlier this month she obtained a observe on wage suspension for 15 days on expenses of “violating confidentiality obligations” and “conduct unbecoming of a public worker inside OPEKEPE.”
EPPO requested her secondment however this was not accepted by present Agriculture Minister Kostas Tsiaras. Finally, “the EPPO noticed itself compelled to withdraw the request for the secondment of an OPEKEPE worker, because it awaits the result of some ongoing exterior proceedings,” EPPO spokesperson Tine Hollevoet advised POLITICO.
No day in court docket
The EPPO case file was despatched to parliament as a result of, resulting from a peculiarity of Greek legislation, solely it has the authority to research and seek advice from justice crimes dedicated by ministers.
The ruling New Democracy social gathering has, nonetheless, repeatedly rejected calls by the EU prosecutors to take motion towards its personal ministers. As a substitute of specializing in the pastureland rip-off, it wielded its majority to arrange a parliamentary inquiry to look into the entire historical past of the administration of agricultural funds since 1998, when the thought of building OPEKEPE was conceived.
EPPO notes in its file that the statute of limitations for alleged crimes carried out by former Agriculture Minister Voridis expires in October.
Well being Minister Adonis Georgiadis has argued that, underneath the Greek structure, EPPO has no proper to go judgment on Voridis or Avgenakis, however can solely recommend that the parliament investigates doable liabilities.
“Who has the bulk in parliament? New Democracy. What has New Democracy determined? That they don’t need them to be investigated. Interval,” he advised Motion 24 TV station.
For Nikos Androulakis, chief of the principle opposition Pasok social gathering, the federal government’s line “insults the intelligence of the Greek individuals, who can be requested to pay the effective.”
“Our nation and the Greek individuals don’t deserve a weak prime minister blackmailed by his personal ministers,” mentioned Androulakis. “Consequently he provides Voridis the reward of the statute of limitations and Avgenakis the reward of amnesty.”
‘We failed’
Pasok and a joint bloc of left-parties Syriza and the New Left have submitted two proposals to launch a parliamentary fee of inquiry that may discover doable felony expenses towards the previous ministers based mostly on EPPO’s case file. Amid chaotic scenes, these motions had been defeated — with a boycott by the opposition events that sponsored the motions failing to deprive the parliament of a quorum.
Talking in parliament on July 30, Voridis mentioned that, based mostly on his actions as minister, “there will be no prison offense” and described the opposition’s proposals as “manifestly unfounded.”
In the identical parliamentary session, Avgenakis mentioned the opposition’s proposals to research him had been “legally flawed.”
The prime minister isn’t in whole denial, nonetheless.
“We failed,” Mitsotakis admitted, referring to the scandal in a Fb put up in late June. “Because it seems, the enduring weaknesses of OPEKEPE allowed for clientelist practices, sadly, even from inside our personal social gathering.”
He additionally promised that those that obtained European funds with out being entitled to them can be required to return the cash. The federal government says that inspections have began and the Organized Crime Directorate may quickly start asset seizures.
Nonetheless, it’s clear that the federal government solely determined to behave after the scandal blew up. It introduced that it’ll shut down OPEKEPE by the tip of 2026, whereas all checks and funds can be carried out by way of the Unbiased Authority for Public Revenues (AADE).
This occurred solely after EPPO delegated prosecutors stormed the OPEKEPE headquarters and its prime prosecutor Laura Kövesi accused officers of bodily obstructing the investigation.
Within the meantime, other than one other president who was compelled to resign — the sixth in six years — different OPEKEPE officers implicated within the scheme stay in put up and can proceed to supervise farm funds this yr and subsequent. As EPPO notes within the file: “The identical group of suspects may presumably search to proceed unhindered their actions.”