EU prosecutors tasked with investigating serious financial crimes are probing the former president of the European Investment Bank, Paralel.Az reports citing Politico.

The European Public Prosecutor’s Office (EPPO) on Monday said in a statement that its investigation involved “two individuals suspected of corruption and abuse of influence, as well as the misappropriation of EU funds.”

Werner Hoyer, who retired from his post as EIB president at the end of last year, faces a corruption case, his lawyer confirmed to POLITICO.

Police officers from Germany and Luxembourg have in recent months seized material related to the investigation, according to two officials who were granted anonymity to describe confidential matters to POLITICO. Officers also searched Hoyer's home.

Hoyer has denied any wrongdoing through his lawyer, who said that the EPPO’s probe focuses on the departure of an EIB employee and the compensation paid to him in this context. Hoyer signed off on the exit package, in accordance with EIB rules, ensnaring him in the probe — even though he was not part of the negotiations, the German's legal team said.

The investigation started after the EU’s anti-fraud agency OLAF flagged the case to the EPPO, which has investigative powers to probe cross-border cases, bring potential culprits to court and ask for reparation for the EU’s interests.

A spokesperson for EPPO said it would not comment on an ongoing investigation.

The Luxembourg-based EIB functions as the EU’s lending arm and is instrumental in boosting development and integration across the bloc by offering loans, guarantees and investment in the public and private sectors.

The EIB, set up in 1958, played a role in propping up the European economy in the wake of the Covid-19 pandemic and supports EU policies in over 160 countries.