In Alguaire, Lleida, the National Court has upheld the conviction of two Indulleida directors and the company itself for defrauding €3.8 million in European agricultural subsidies.
The second section of the criminal chamber dismissed the appeals and confirmed one-year prison sentences for the administrator, until November 2018, and for the CEO, from January 2019, when Nufri acquired a majority stake in the company. It also confirmed fines of €3 million for both directors and Indulleida.
The ruling bans the company from receiving public subsidies or tax benefits for three years. It also orders the three parties to return €2.1 million, plus interest, to the Spanish Agrarian Guarantee Fund (FEGA) for aid that was received improperly.
The case dates back to 2018, when FEGA granted Indulleida €3.88 million for projects to expand and improve facilities under the 2014 to 2020 National Rural Development Programme. The aim was to modernise the plant and create higher value-added products through the industrial transformation of fruit and vegetables.
At the same time, Indulleida applied for a €6 million loan from the Catalan Finance Institute (ICF) and a 2% interest rate bonus from the Generalitat's Directorate General of Industry for the same project. The court said this funding was incompatible with the European aid, and that the company concealed the ICF loan when it sought the second annual payment of the subsidy.
The defence argued that there was no incompatibility between the funding lines and said the crime had been completed before the current CEO took charge. The magistrates rejected those claims, saying the request for the second payment kept the fraudulent conduct alive and that the CEO had an obligation to know the company's subsidy and financing position. The court also backed the European Public Prosecutor's Office, which said the loan and interest bonus formed a single financial instrument for the same purpose subsidised by FEGA. The sentence is not yet final and can be appealed to the Supreme Court. More Catalonia news
