All About the Fraud Involving the Dean and Faculty Members That has Rocked a University

Scams are not just confined to the crypto world, social media, or financial sectors as even education isn't untouched by fraudulent schemes. The Dean of the Geodesy faculty at the University of Zagreb, along with a fellow professor and 27 other people connected to the suspected fraudulent activity, has been arrested for suspected subsidy and procurement fraud exceeding $2.1 million, including misappropriation of $1.8 million in EU funds. The European Public Prosecutor’s Office (EPPO) has initiated a thorough investigation into the matter.

The fraudulent activities are said to have occurred between October 2019 and November 2023, during which the Dean and professor were responsible for public procurement procedures for four projects totaling $6.4 million. A substantial 85% of this amount originated from EU funds, specifically the European Regional Development Fund (ERDF) and the EU Solidarity Fund.

The projects that were meant to be financed by the money siphoned off by academics, included natural disaster risk assessment, climate change studies, sustainable development of maritime ecosystems, and a survey of earthquake-damaged cultural heritage buildings.

"According to the investigation, the main suspects obtained the funds by manipulating 28 procurement procedures so that specific companies – small businesses and law firms – were selected," an EPPO press release revealed. "In exchange for selecting those companies, a portion of the distributed funding was returned to the main suspects – either personally, or by paying for works performed on the private properties of the main suspects."

The EPPO has now accused the Dean and professor of manipulating procurement procedures in a way that it favored specific companies, which subsequently reciprocated by providing kickbacks, either in monetary form or by covering expenses related to work on private properties of all those who were involved. The duo that masterminded this scam is also accused of using the funds to purchase a nearly $7227 boat, which was not used for the projects, and was instead leased to boost tourism. Two other vehicles were also purchased, one of which was for the professor and another for a faculty member.

Apart from procurement manipulation, the dean and professor face investigations for submitting false travel expenses and daily allowances for themselves, as well as eleven others involved in research projects on as many as 317 occasions. The arrests follow extensive searches conducted by the EPPO at the University of Zagreb.

The Croatian university finds itself under scrutiny as the Dean of the Geodesy faculty, along with the suspects, faces serious allegations. The scandal, involving accusations of bribery, kickbacks, and misuse of research project funds, has raised concerns about the integrity of the university's financial management. The European Public Prosecutor’s Office is determined to uncover the full extent of wrongdoing involved, which points in the direction of a stringent approach to combating fraud within the EU's academic and research funding frameworks. 

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the European Union.