In early May, the European Public Prosecutor’s Office (EPPO) in Turin (Italy) seized money and real estate with a value of €530 000 from an agricultural company in the village of San Pietro Mosezzo (Piedmont region). Three people are under investigation for aggravated fraud and embezzlement to the detriment of the EU budget.
The Novara Command of the Guardia di Finanza (Italian Financial Police) executed the preventive seizure order issued by the Judge for Preliminary Investigations at the Court of Novara.
It is alleged that the agricultural company that manages the major farm, unduly benefited from a grant to be used for the construction of rice dryers. The grant is part of the resources made available within the framework of the EU’s Common Agricultural Policy (CAP).
According to the investigation, the agricultural business, which was established only after the publication of the call for applicants, was awarded the grant as it was made up of five major farms. This was a decisive factor in obtaining a higher score for the distribution of the grant.
It is also believed that only some members of the consortium used the rice dryers built with the received funds, as the others already owned similar machines, which had been recently built and/or modernised.
Thanks to further forensic analysis, potential proof of embezzlement was found. It emerged that the constructed rice dryers had been used by companies outside the consortium. By doing so, the consortium partners disregarded the exclusive use of the rice dryers specified in their contract.
As a result, it is alleged that over €500 000 in EU contributions was unlawfully obtained, and parts of the profit deriving from the undue use of the rice-drying equipment went to companies outside the consortium.
The CAP makes up more than 30% of the EU budget, and Italy is the leading rice-producing country in Europe. The Piedmont region ranks first nationally in the production of this cereal, which, for the province of Novara, represents a flourishing economic sector.