Audit exposes major weaknesses in former OPEKEPE subsidy controls

A court audit has revealed significant flaws in the internal controls, payment processes and eligibility checks of the former OPEKEPE farm subsidy agency, according to a recent review of a special fund used for subsidy payments during the 2023 financial year. The audit, conducted by the Court of Audit, the state's top oversight body, found systemic issues that raised concerns over the handling of approximately €3.4 billion in EU-funded agricultural support. The report detailed multiple deficiencies, including problems with the agency’s information systems, errors in payment calculations and insufficient measures to verify beneficiaries. Auditors noted that incorrect payments amounting to €52 million were issued, with €9 million specifically linked to the Green Support scheme. These payments were based on outdated entitlement figures from the previous year. Additionally, the audit flagged irregular and unlawful payments, which will undergo recovery efforts. In the 2023–2027 Beekeeping Program, further shortcomings were identified. These included weak control mechanisms, payments that exceeded authorized limits and reimbursements for VAT expenses that did not meet eligibility criteria. The audit also pointed to a lack of integration among more than 130 separate information systems, many of which operated independently without interoperability. This fragmentation led to incomplete on-site inspections, failure to document inspection outcomes and the absence of essential safeguards, such as connections with national cadastre and tax authority databases. To address these issues, the Court of Audit proposed several recommendations. These include enhancing verification procedures, implementing mandatory electronic land lease records, improving data sharing between government entities and creating a formal complaints management system. Such steps aim to prevent unauthorized payments and promote greater transparency and accountability. The Court of Audit audits public funds in accordance with legal, regulatory and fiscal management standards. Its role is to ensure that taxpayer money is used appropriately and efficiently. The audit comes amid ongoing investigations by the European Public Prosecutor’s Office (EPPO) into a large-scale organized fraud scheme related to EU agricultural subsidies managed through OPEKEPE. According to the EPPO, the probe has uncovered consistent patterns of corruption in the administration of EU agricultural funds. These include illegal influence over inspections, tampering with official documents, manipulation of inspection reports and the issuance of fraudulent certifications. As a consequence of this scandal, OPEKEPE was disbanded, and its responsibilities were transferred to the independent tax authority AADE. OPEKEPE had been responsible for distributing agricultural subsidies under the Common Agricultural Policy (CAP). The agency’s dissolution marks a shift toward stricter oversight and centralized management of EU funding. The transition to AADE reflects a broader effort to enhance transparency and reduce opportunities for misuse of public resources. The audit and subsequent legal actions highlight the challenges of managing complex subsidy programs, particularly when they involve cross-border funding and extensive administrative frameworks. The findings underscore the need for robust internal controls, continuous monitoring and improved inter-agency cooperation to safeguard public finances. With the new oversight structure in place, there is hope for increased efficiency and reduced risk of future mismanagement.