Today, the European Public Prosecutor’s Office (EPPO) in Zagreb, Croatia, has officially handed over a significant case file to the Croatian Office for Suppression of Corruption and Organised Crime (USKOK). This action follows a recent ruling by the Croatian State Attorney General and highlights ongoing concerns regarding corruption linked to EU-funded projects.
The EPPO has been investigating a criminal network involving eight Croatian nationals and two companies, allegedly engaged in corrupt practices targeting procurements financed by the European Union, particularly through the “NextGenerationEU” fund, as well as the national budget. The investigation has focused on serious offenses including active and passive corruption, abuse of authority, and money laundering, with activities reportedly taking place between June 2022 and November 2024. These offenses are closely interconnected, indicating a sophisticated scheme aimed at misappropriating public funds.
Initially, the EPPO planned to execute searches and make arrests on November 19, 2024. However, on November 15, they discovered that USKOK had already obtained court orders for searches related to some suspects under their investigation. This revelation prompted the EPPO to formalize its investigation on the same day and request jurisdiction over the case from USKOK.
In response, USKOK sought guidance from the State Attorney General to resolve this conflict of jurisdiction as stipulated by both EU regulations and Croatian law. Although the EPPO strongly contested the State Attorney General’s decision—arguing it violated EU law by failing to consider their position—it complied with the ruling and relinquished control of the investigation to USKOK.
In light of these developments, the European Chief Prosecutor has issued a formal letter to the European Commission, emphasizing Croatia’s persistent challenges in maintaining the rule of law. This letter aligns with Article 4 of Regulation (EU) 2020/2092, which outlines conditionality measures for protecting the EU budget.
The appointment of the State Attorney General as the conflict resolution authority contradicts EU law.
The State Attorney General’s decision was based solely on USKOK’s interpretation without allowing input from the EPPO, compromising impartiality.
USKOK failed to notify about its investigation into an EU-funded project, breaching obligations under EPPO regulations.
The EPPO serves as an independent public prosecution office for the European Union, tasked with investigating and prosecuting crimes that threaten EU financial interests. As this case unfolds, it underscores ongoing tensions between national authorities in Croatia and EU institutions regarding governance and accountability.
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