A company that helped finance Northvolt is now under investigation for suspected subsidy fraud and VAT fraud. At the same time, a new audit shows that the company’s top executives have received bonuses worth tens of millions of kronor—even though the business has been largely financed with EU funds.
The European Public Prosecutor’s Office (EPPO) is investigating the EU-linked company InnoEnergy for suspected grant fraud and VAT fraud. The company has played a key role in the early financing of Northvolt and, since its inception in 2010, has received approximately 760 million euros in funding from the EU’s innovation agency. European Institute of Innovation and Technology (EIT). No verdict has been reached yet, and the investigation is still ongoing, according to reports The business world.
Bonuses in the millions despite EU funding
A review from the Dutch website Follow the Money, as reported by Affärsvärlden, shows that InnoEnergy’s former CEO Diego Pavia and CFO Bart de Beer have collectively received over 9.2 million euros in compensation since the company was founded. Nearly 4 million euros consisted of bonuses and other variable compensation. At the same time, between 60 and 90 percent of the company’s operations were funded by EU grants during the years 2010–2020.
According to the review, InnoEnergy is also the only one of the EU's nine so-called Knowledge and Innovation Communities that have paid bonuses to management. This has raised questions about how public funds are used when they are managed by companies with both private and public owners.
Played a key role at Northvolt
InnoEnergy was one of the first major investors in Northvolt and has also participated in the financing of Stegra. During the Northvolt crisis in 2024, then-CEO Diego Pavia described the company’s role as follows:
– We'll really help out.
According to Affärsvärlden’s report, InnoEnergy held shares in both Northvolt and Stegra at that time. In addition, several individuals with ties to the company have had ownership interests or other connections to Northvolt, Stegra, or Vargas.
More questions lie ahead
InnoEnergy has rejected the allegations and states that its operations comply with applicable regulations. At the same time, the ongoing criminal investigation is expected to lead to increased scrutiny of how EU-funded companies are governed and how public funds are used when financing major industrial projects such as Northvolt.
Just the tip of the iceberg.
All those in power, along with SVT employees, are guilty of mass fraud.
Moreover, the warnings came very early on in that story.
Agreed!
The entire green transition is nothing but a massive scam in which capitalists line their pockets at the expense of the people.