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Greek Farmers Received Subsidies for Non-existent Cotton Fields

28 June 2014 / 15:06:18  GRReporter
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The financial police office revealed another dual fraud case detrimental to the state. The frauds involve farmers-producers as well as suppliers of cotton seed who, for many years, illegally received grants from the agency responsible for payments and control of public grants concerning guidance and guarantees.
The investigation found that those involved were five Greek citizens aged 22 to 76 years, producers of cotton in the region of Etoloakarnania, as well as two private companies and eight other farmers from Kilkis.
All the people involved were charged with fraud, tax evasion, issuing false tax documents and other violations of the law.
How the Fraud of Non-existent Fields was Carried Out
In regard to the case in Etoloakarnania and the five cotton producers involved, it became evident that from 2006 to 2012, they declared to the Agency for Payment and Control cultivating agricultural land with a total area of 370 acres in order to receive illegally the grants under local and European programs.
To prove a larger area of the fields actually possessed, the individuals involved in the fraud issued private contracts for land farming providing information neither about the actual location of the fields, nor about their actual size.
An inspection of agricultural land showed that none of the field information corresponded to what was initially requested by the producers both in terms of size and location. The producers couldn’t even prove whether they were the rightful owners.
Moreover, the land was also claimed by other farmers applying for subsidies. A typical example showed at least two farmers who had declared one of the disputed fields cultivated by them as their property, while in fact it was owned by a legal entity.
For 2011 alone, when the inspection was completed, the caused or likely (with attempted fraud) damage to the state equalled € 30,000 in total. For the period 2006-2012, the total damage will be calculated after completion of the inspection.
False Invoices at the Seeds Market of Kilkis
In regard to the second case, the documents of cotton seed deliverers were verified in the Kilkis and Pella regions.
The verification procedure concerned legality of subsidies granted to cotton producers and comprised delivery of cotton seeds to the producers by other companies,  invoicing, and at a later stage, submission of those invoices and other documents by the farmers to the Agency for Payments and Control followed by an approval of their requests for grants.
During the investigation of the two companies issuing invoices, multiple invoices and way-bills were seized.
It became evident, from the subsequent inspection, both the criminal liability and administrative violations of the two companies that issued false invoices for the purchase of seeds to at least eight farmers who submitted them afterwards and who received grants from the Agency for Payments and Control for the total amount of € 83,755.58.
The violations of those companies also include tax evasion by issuing false invoices as well as other violations of law.
The charges against the offenders have been sent to the competent prosecution in Messolonghi and Kilkis respectively, whereas tax documents were submitted to the tax offices in charge.

 

Tags: Subsidies Cotton Fields Greek Farmers financial police European programs
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