The farm scandal in Greece, involving allegations of widespread illegal agricultural subsidies, continues to unfold, revealing a complex web of fraudulent activity and raising serious questions as to political integrity.
Revelations by former Minister of Digital Governance Christos Boukoros regarding a blatant scheme at Lake Karla in Central Greece have intensified calls for a thorough investigation, with opposition parties directly implicating the Prime Minister’s office.
Farm fraud at Lake Karla
Christos Boukoros, who recently resigned, revealed that he had urgently alerted then-Minister of Rural Development Spilios Livanos in a letter on July 6, 2021 about significant irregularities at Lake Karla. In speaking to ERT, Boukoros detailed a staggering case whereby “2,500 acres of State land, earmarked as a construction site for major environmental projects, were illegally declared for subsidies.”
He explained that five individuals falsely claimed to be cultivating this public land, receiving annual subsidies for crops like cotton and tomatoes that were never planted. “We are talking about 2,500 acres in total, of which 1,200 were declared every year without being cultivated,” Boukoros stated.
With per-acre subsidies of €100 (about $115), this amounted to an estimated €120,000 (about $140,000) annually in illegal payouts for just 1,200 acres, accumulating to “many tens of thousands of euros annually” over five years (2017-2021).
Boukoros’ letter specifically questioned the nature of the alleged rental properties, the identity of these individuals, and how they managed to declare cultivation or grazing on uncultivated public land.
Despite informing the competent minister, Boukoros confirmed that he lacked the mechanism to track whether OPEKEPE, the agency responsible for administering EU agricultural subsidies to Greek farmers, had recovered the illicit funds.
Farm subsidies paid to a dead man?
The Lake Karla case is just one egregious example in a scandal that continues to expose “blatant cases of fraud, dialogues and practices reminiscent of the mafia.” Allegations include the existence of 5,500 unaudited VAT numbers associated with dubious subsidies.
Reports suggest a deputy government minister even requested a subsidy be paid to a deceased individual, an incident reportedly detailed in the case files.
Current information from Mega Channel suggests that new case files will mention a total of thirty members of Parliament who have been involved in the scandal. Naftemporiki newspaper indicated a “second case” involving forty to fifty individuals, including MPs, office directors, and advisors from the Maximos Mansion (the Prime Minister’s office).
Greece’s opposition places Mitsotakis at the center of the farm scandal
The opposition has been quick to place Prime Minister Kyriakos Mitsotakis at the center of the scandal, citing leaked information and letters from officials suggesting his close associates were aware of the abuses of European funds.
PASOK explicitly claims “the masks have fallen,” alleging that the “narrow core of the Megaron Maximos was aware of the mismanagement party in OPEKEPE since the fall of 2023,” referencing letters from former OPEKEPE President Evangelos Simandrakos to former Deputy Minister to the Prime Minister Yiannis Bratakos.
The Socialist party challenges the Prime Minister: “Why did you not stop these unhealthy phenomena when you knew about them? Why did you cover up the ‘blue’ circles? Why do you still not assume your responsibilities towards the Greek people?”
SYRIZA has taken a firm stance, demanding “preliminary investigation, resignation of the government and elections are the only solution” and echoing the sentiment across opposition parties that the Prime Minister knew about the scandal. SYRIZA also maintained that the situation warrants a preliminary investigation committee.
Government response and internal tensions
The government, for its part, maintains the Prime Minister’s previous statement that “unfortunately, we failed.”
It continues to frame the OPEKEPE scandal as reflecting “chronic pathologies of the deep state,” with the Prime Minister assuming general responsibility for the political world despite allegedly being unaware of the specific abuses.
Significant concern is brewing among New Democracy (ND) MPs, who worry about the scandal’s trivialization. The prospect of two additional case files from the European Union further exacerbates the climate within the parliamentary group, and the question of a “pre-investigation” remains open.
Uncertainty looms over how the ND parliamentary group will vote on potential preliminary investigation requests. Overall, there is intense concern within the party as to the government’s ability to continue amidst its “credibility and acceptance at its nadir.”
Nafteboriki says that scenarios of early elections or a change in prime minister are being discussed behind the scenes, with MPs adopting a “wait-and-see” approach: “Let’s first see what the Prime Minister will do, how public opinion will shape up and what other elements will emerge.”
Related: Greek PM Office Implicated in Farm Fraud as New Evidence Emerges