- He had warned the minister that new fines were on the way regarding the so-called “Mediterranean pastures,” but the minister ignored him.
- The scheme involved setting up grazing lands without livestock and filing fraudulent “ghost” applications, which are now under investigation by the European Public Prosecutor’s Office.
- “The grazing areas have been abandoned. As a result, the risk of irregular payments — and the drain on the fund — increases year after year.”
- Photographic evidence of the scam involving the “fake” pastures on Mount Grammos was submitted by the seven defendants who were later convicted by the Single-Member Court of Appeal for Felonies.
By Vangelis Triantis
Data Journalists published new evidence today regarding the OPEKEPE scandal. The evidence concerns a “briefing note” sent in September 2020 by Grigoris Varras, the president of OPEKEPE at the time, to Makis Voridis, the minister of rural development at the time. The note addressed the issue of grazing lands in Greece and two rulings by the European Court. Through these rulings, Greece managed to avoid paying €480,882,000 in fines for subsidies granted for “Mediterranean-type” pastures during the period 2009–2013.
Mr. Varras informed Mr. Voridis of how OPEKEPE and the Ministry of Rural Development should proceed with the so-called “Mediterranean pasture” to avoid new fines from the European Commission and prevent “irregularities” and “distortions” by farmers. In the briefing note, which is now in the hands of the European prosecutors, Mr. Varras essentially proposed that “the actual use of these grazing areas must not be allowed to lapse” because, in a short time, “woody plants and shrubs will take over and, consequently, grazing will be affected,” meaning the land would no longer be eligible.
In short, Varras advised the Minister of Rural Development at the time not to allow subsidies for Mediterranean pastures without livestock in order to prevent “irregularities” and “distortions.” Without grazing, he warned, the vegetation would overgrow, rendering the pastures ineligible. However, his pleas went unheeded, resulting in thousands of applications being submitted for pastures without animals and allowing fraud to “flourish” at the expense of the European Union.
A telling example is the case of the pastures on Mount Grammos. Just a few days ago, the Single-Member Court of Appeal for Felonies found all seven defendants guilty of various offenses, the most significant of which was misdemeanor-level fraud against the interests of the EU. Data Journalists presented photographic evidence from applications submitted by some of the defendants on the basis of which they received subsidies unlawfully. As can clearly be seen, these were pastures without livestock—exactly the kind that Professor Varras had warned Mr. Voridis about, but was ignored. The convicted individuals filed their applications in 2019 to claim entitlements from the national reserve. However, the rights were issued in September 2020, during Makis Voridis’s tenure as minister, just days before Varras sent his warning note. These pastures, therefore, were extensively used for fraudulent applications that could have been prevented from 2020 onward and are now under investigation by the European Public Prosecutor’s Office.
The €480,882 Million Fines and Court Rulings
In September 2020, Grigoris Varras, the then-president of OPEKEPE, sent Makis Voridis, the then-minister of rural development, a highly significant briefing note concerning two rulings of the European Court on Greece and its pastures. The rulings, C-252/18 P of February 13, 2020, and C-797/18 P of April 20, 2020, relate to the European Commission’s imposition of “financial corrections” totaling €480,882,000 on Greece. The Commission determined that Greece violated EU law on pasture subsidies from 2009 to 2013. According to the Commission, Greece had granted subsidies for “Mediterranean-type” pastures — rocky areas where “woody plants or shrubs” thrive — which, in the EU’s view, did not meet the definition of pasture under EU legislation. Specifically, through two decisions in June 2015 and March 2016, the Commission ordered Greece to pay the aforementioned fines. Greece initially filed appeals before the General Court of the European Union, but they were rejected. Greece then filed applications to annul those decisions and ultimately won the cases, securing two court rulings (C-252/18 P of February 13, 2020, and C-797/18 P of April 20, 2020). Following these judgments, the Commission “required” Greece to prepare an “action plan” for 2020, as set out explicitly in its letter Ares (2020) 4181307 of August 10, 2020, as noted by Mr. Varras.
In this context, on September 7, 2020, the president of OPEKEPE at the time sent a letter to Makis Voridis. On September 10, 2020, a meeting was held at the Ministry of Rural Development with representatives from the State Legal Council in attendance.
Mr. Varras informed Mr. Voridis that, on September 7, 2020, the European Commission had notified OPEKEPE of the outcome of a bilateral meeting held on June 18, 2020. The meeting addressed the “European Court rulings C-252/18 P and C-797/18 P,” and the technical services of the Agency and the State Legal Council attended. The President of OPEKEPE sounded the alarm to Makis Voridis “to avert the looming risk that the European Commission might once again bring the matter of the pastures before the European Court of Justice, creating new problems for the Greek authorities,” following the communication of the Bilateral’s conclusions. To this end, he provided Mr. Voridis with all the relevant information to address the issue effectively.
The critical detail they overlooked
As Mr. Varras noted, in light of the two European Court rulings, the Directorate-General for Agriculture (DG AGRI) “does not object to the eligibility of Mediterranean pastures, particularly woody plants and shrubs.” However, the DG’s main concern lies in how the Greek authorities apply and enforce that definition.
According to Mr. Varras, the Directorate-General for Agriculture and Rural Development (DG AGRI) had pointed out that “the Mediterranean pasture is, by its nature, an area in which traditional grasses and other herbaceous forage plants do not generally dominate.” However, if the actual use of these grazing areas ceases, over time the land will revert to its natural state, meaning woody plants and shrubs will prevail, consequently affecting grazing. “In other words,” Mr. Varras stressed, “these areas will no longer be eligible.” In short, Mr. Varras was telling Makis Voridis that granting subsidies for pastures without livestock would inevitably cause problems. Grazing keeps vegetation low, thereby preserving the eligibility of these pastures. Without grazing, vegetation would quickly grow and the pastures would lose their “Mediterranean character,” along with their right to receive subsidies.
As Mr. Varras noted in his letter, the European Commission had made this observation as early as 2014:
“Following the introduction of decoupling, the pasture areas have been abandoned and are rapidly reverting to natural landscapes. As observed during various missions since 2006, these areas have gradually returned to nature due to their management. Consequently, the risk of irregular payments — and losses to the fund — increases over time.”
For these reasons, Mr. Varras opposed the Greek authorities’ stance that “anything offered for grazing” qualifies permanent pastures as eligible, since DG AGRI does not accept this position unconditionally.
“For this very reason, there must be a system that ensures clear results regarding the actual use of permanent pastures and determines their eligibility. Investigations conducted by the European Commission’s services in recent years have already identified this risk and gathered evidence, primarily regarding the inability to graze abandoned pastures. This risk must be assessed, especially since the Greek authorities have not presented specific measures, such as grazing management plans,” the then-president of OPEKEPE stated in the briefing note to Makis Voridis.
At the same time, Mr. Varra emphasized to Makis Voridis that if no evidence, action plan, or new risk assessment is submitted in light of the European Court ruling, DG AGRI will act arbitrarily again, relying purely on administrative arguments that the Greek authorities refused. However, by doing so, DG AGRI will have secured the invocation of non-cooperation by the Greek authorities, which increases the risk that DG AGRI will win the case before the European Court.”
The warning about “irregularities” and distortions
The current advisor to the Prime Minister, who K. Mitsotakis appointed after resigning as president of OPEKEPE, argued in his briefing note that “the Greek authorities must present a clear description of what constitutes a pasture in Greece and how it is managed according to the law, regardless of whether it is enforced, to make it clear that this is not merely a financial transaction.” In other words, “The relationship between the state and livestock farmers is not limited to determining and paying the very low rent, which is just two percent of the subsidies received by farmers.”
Mr. Varras was clear and issued a warning about potential “irregularities.”
“The low rent, without any additional expenses for the livestock farmers to maintain the pastures, is a potential incentive for irregularities. Therefore, the Greek authorities must prevent such behavior through an action plan and grazing management plans,” he emphasized to the minister.
He also stated that “a risk assessment must accompany such a plan until the grazing management plans are implemented — an assessment that we should agree upon with the European Commission.” Mr. Varras pointed out that “there is already a significant amount of data that can be used as scientifically substantiated evidence combined with action plans undertaken during previous attempts to resolve the issue” and that he had attached a “corresponding French plan” to the Minister of Agricultural Development at the time.
He noted that these data could be used to demonstrate the Greek authorities’ genuine involvement in the matter and help restore trust with the European Commission regarding pastures, especially in view of the new CAP.
“Avoiding distortions in subsidies”
In his concluding remarks, Mr. Varras once again sounded the “alarm bell” about potential “distortions in the subsidy system,” which could result in “major financial corrections from the EU.”
Specifically, Mr. Varras wrote:
“Dear Minister,
Based on what I explained above, following the September 10, 2020, meeting, and your instructions, I believe the Greek authorities should take the next step on the critical issue of pastures. This is especially important as the new CAP approaches. This will ensure that pastures are used for productive and developmental purposes by livestock farmers. It will also prevent pastures from becoming a distortion of the subsidy system, which could result in major financial corrections by the EU.
I remain at your disposal for any information or clarifications you may need.
Respectfully,
Grigoris Varras.”
The briefing note from Mr. Varras:
Photographic Evidence of the Grammos Scam
Mr. Varras’s warnings were ignored by Mr. Voridis. Consequently, Mediterranean-type pastures without animals were used to claim EU subsidies in numerous cases. One such case was recently tried at the Single-Member Court of Appeals for Felonies concerning the “fake” pastures in Grammos. Paraskevi Tycheropoulou, the former Head of Internal Audit at OPEKEPE, initially identified this case in 2020. She subsequently referred it to the justice system, along with others, through former OPEKEPE president Grigoris Varras.
The court found all seven defendants guilty of various offenses, the most serious of which was misdemeanor fraud against the interests of the EU. According to the charges, some of the defendants, with the help of their co-conspirators, unlawfully received subsidies ranging from €25,000 to €90,000 each.
Specifically, Nikos Chlykas, the owner of the Declaration Submission Center, through which his children submitted applications for national reserve payments, was sentenced to 12 months in prison. His children, Nikos and Foteini Chlykas, were sentenced to 15 and 10 months in prison, respectively.
The court imposed the following prison sentences: nine months on Eleni Kalfountzou, nine months on Elpida Kalfountzou, 12 months on Ilias Kalfountzos, and 15 months on Sofia Theocharopoulou, Ilias Kalfountzos’s wife. Ilias Kalfountzos is an agronomist and a member of the New Democracy party. He is also the best man of former Thessaly Regional Governor Kostas Agorastos. According to reports, he also has close ties with the current New Democracy MP for Larissa, Christos Kapetanos. It should be noted that the sentences are suspended for three years pending the appeal trial, as those convicted in the first instance will file an appeal.
Data Journalists published photographic evidence of pastures from applications submitted to OPEKEPE by members of the Chlykas family.
As one can see, these are Mediterranean-type pastures without animals. Mr. Varras had warned Mr. Voridis about possible “irregularities” and “distortions” in the subsidies, but his warnings were not heeded. The convicted individuals submitted applications for the national reserve fund in 2019; however, the rights were granted in September 2020, during Minister Makis Voridis’s tenure, just days before Mr. Varras issued his warning. From 2020 onwards, pastures without animals were widely used for “fake” applications, which are currently under investigation by the European Public Prosecutor’s Office and could have been avoided.
