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Slovakia failed to use millions of EU funds for fisheries support efficiently

Bratislava, 1 March 2024 - The Ministry of Agriculture and the Agricultural Paying Agency (APA) have failed to manage the Operational Programme Fisheries (OPF) for 2014-2020. Due to a complex and poorly set-up system, Slovakia has not made sufficient use of the opportunity to actively support fisheries entrepreneurs. Initially, almost EUR 16 million was allocated for this operational programme from European funds, of which we had to return to Brussels up to 51% (EUR 8.05 million). Of this reduced amount, only less than a third has been used in nine years, namely to support 43 projects. Funding above the rules was used for technical assistance related to the administration of programme implementation, with a significant part used to reimburse salaries. "The Agricultural Paying Agency was originally responsible for this programme, including at the time we audited it, and based on the auditors' findings we had to conclude that there was a high risk of corruption or non-transparency in the Agency. These substandard conditions have also been reflected in poor governance and management. The desired changes did not take place even after the change of the managing authority, when the Agency was replaced by the Ministry of Agriculture. The problems of this operational programme thus remained in the shadow of the scandals of the three-billion direct payments to farmers," said Jaroslav Ivančo, the vice-president of the Supreme Audit Office (SAO) of the Slovak Republic.

The Operational Programme Fisheries 2014-2020 was unreadable, administratively demanding and lengthy for beneficiaries. The programme was approved by the European Commission on 15 July 2015 and the first calls were only launched in December 2016. By comparison, in the Czech Republic it took six months. A total of 34 calls and invitations were launched under the programme, 24 of which had to be withdrawn by the managing authority at various points in the programming period. In nine cases, this was because nobody responded to the call. Despite the fact that even small projects have received assistance from this programme, and that Union support has amounted to around EUR 16 000 in some cases, the administration has been as demanding as when obtaining funding for the construction of motorways or hospitals. "In the case of a motorway, however, the project contractor does not have to count on the risk of zero production. For fisheries entrepreneurs, this is also why EU funds are risky. If, for example, their fish get sick, they have nothing to sell and therefore do not meet the measurable indicators and have to repay the EU funds," explained the vice-president of the Supreme Audit Office. "As the co-financing rate for these calls was 50 %, those who were not financially strong even before the adoption of the EU funds had no chance to withstand the sanctions. Therefore, some entrepreneurs withdrew their applications or did not submit them at all," added Mr Ivančo.

The full text of the press release about this issue in Slovak language is available here.

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