Skopje, 10 June 2025 (MIA) - The Basic Public Prosecutor’s Office for Prosecuting Organized Crime and Corruption has initiated a procedure against 23 people and 15 legal entities suspected of criminal association, tax fraud, money laundering and unscrupulous operation as part of the “Krmzov” case. According to the Office, the suspects are estimated to have caused EUR 90 million in damages to the state budget, conducting their illegal activities through fictitious contracts, manipulations with VAT and the sale of real estate.

At a media briefing Tuesday, the Prosecutor’s Office said the initiative for the investigation came from the Public Revenue Office and the case encompasses the period between 2019 and 2024.

Chief state prosecutor Ljupcho Kocevski stressed at the briefing that the Prosecutor’s Office is carefully assessing the grounds for the case.

“The Prosecutor’s Office should be allowed to assess which measures are necessary. It is carefully assessing the bases for this. The investigation is being launched at this moment, and we will see how it develops. We hope that the Prosecutor’s Office will be able to file an indictment within the deadline,” Kocevski said.

The head of the Basic Public Prosecutor’s Office for Prosecuting Organized Crime and Corruption, Islam Abazi, said the suspects are believed to have caused damages of around EUR 90 million to the state budget.

“There are a total of 23 suspected natural persons and 15 legal entities. They are suspected of criminal association, tax fraud, money laundering and unscrupulous operation. There are detention requests for some of them, and precautionary measures for others,” Abazi said.

Prosecutor Verica Berzhecka Krsteva noted that a number of companies are involved. According to her, they conducted illegal activities through fictitious contracts, VAT manipulation and the sale of real estate at extreme prices. The corporate offices that were being sold were in Strumica and were all owned by the legal entity “Krmzov”, she said.

“The suspects include accountants, managers of the legal entities and inspectors at the Public Revenue Office. The possibility to expand the investigation to include new people and time periods is also being assessed,” the prosecutor added.

Some of the suspects’ assets have been frozen.

In September 2024, a police operation targeting tax evasion was carried out in companies in Strumica, Skopje, and Gostivar. Four individuals were detained, and the state public prosecutor announced that a case had been opened for tax fraud and money laundering. Three individuals were questioned, while precautionary measures were proposed for one of them.

According to the authorities, the investigation in the “Krmzov” case has found that several millions of euros from Eurostandard Bank, which collapsed in 2020, have been transferred to accounts in Turkey. The investigation involves multiple companies from Strumica that are suspected to have been a part of businessman Risto Krmzov’s scheme for financial abuse. At the Tuesday’s briefing, prosecutor’s said businesses related to the Strumica businessman made over EUR 30 million in VAT refunds through fictitious invoices.

On Monday, Risto Krmzov was placed in 30-day detention due to the risk of flight, witness tampering, and the possibility of repeating the offense.

MIA file photo