The European Commission has suspended payment of 242 million euros ($317 million) in funding to Slovenia due to revelation of fraud in some projects in the country.
The suspension was done after at least 34 of the 71 random cases were found to be having flaws by Slovenian authorities, reported Xinhua citing local business daily Finance.
The payments will not be resumed until oversight of the use of EU funds in Slovenia has been improved, it said.
The problematic cases include a suspected purchase of old medical equipment that was declared as new subsidised by 1.32 million euros, and a 3.17-million-euro project of a golf course that was never built.
The Slovenian Ministry of Economic Development and Technology, responsible for the management for European structural and cohesion funds, has promised the European Commission an action plan to take "all corrective measures demanded by the Commission".
The Slovenian government is optimist that the EU funds will resume by the end of summer.