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Subsidy fraud: companies in Poland under suspicion

17.06.2019 − 

The Polish Anti-Corruption Bureau (CBA) in Gdansk has arrested a total of 17 people throughout Poland on suspicion of subsidy fraud. Among them are also employees of companies from the Polish furniture industry and woodworking machine manufacturers. As the CBA announced on 5 June, the premises of 20 company headquarters were searched. The search was based on the suspicion that the companies had received illegal EU subsidies between 2013 and 2015 as part of the "Innovative Economy for 2009-2013" economic development programme of the Polish Agency for Enterprise Development (PARP).

The CBA's findings indicate that a company set up specifically to raise these funds received illegal subsidies totalling PLN 27m. Following the signing of a subsidy agreement with PARP, representatives of the fraudulent company in question and Polish companies from the furniture and wood machinery industries agreed on prices for the production equipment ordered. The price was therefore overcharged in order to obtain correspondingly higher subsidies.

Four of the arrested persons are to be charged with participation in an organised criminal organisation, subsidy fraud, deception and criminal and tax offences. Two of the suspects will also be sued for money laundering. The remaining detainees will be charged with tax offences and fraud. According to the CBA, the investigations are still ongoing. The authority does not rule out further arrests.

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