The European Anti-Fraud Office (OLAF) and the European Public Prosecutor’s Office (EPPO) are jointly investigating a suspected fraud case in Romania, involving a significant sum of money, estimated at €15 million. This substantial amount of European Union funds is under scrutiny as investigators delve into alleged irregularities within IT projects designed to boost innovation and productivity in the region. The probe has already led to extensive action, with 38 house searches conducted this week as part of the coordinated efforts by OLAF and EPPO.
These investigations are centered on how EU funds, intended to stimulate growth and development through technology, may have been misappropriated. OLAF initiated complementary investigations to run parallel with the EPPO’s criminal proceedings, aiming to uncover the full extent of the alleged fraudulent activities. Early findings suggest a complex international fraud scheme, where millions of euros in EU funding were purportedly diverted using falsified or inaccurate invoices. Following this, there were attempts to conceal the illicitly obtained money through sophisticated money laundering operations.
The scope of the investigation extends beyond Romania, encompassing legal entities and individuals in several other countries. Cyprus and the Czech Republic are key locations in this international network, with links also being traced to Malta, Monaco, and even the United States. This cross-border dimension highlights the complexity and reach of the suspected fraud, emphasizing the challenges in safeguarding EU financial interests across different jurisdictions.
Ville Itälä, Director-General of OLAF, emphasized the importance of inter-agency cooperation in tackling such financial crimes. He stated, “I am pleased with this joint success that shows the impact of good cooperation between OLAF and the EPPO. We have uncovered an alleged fraud scheme worth 15 million euro, and we have analysed and tracked down a likely money laundering scheme at international level. Fraud is often an international business. Following the money, analysing financial transactions and concrete investigative action across borders are key in anti-fraud investigations.” This quote underscores the effectiveness of collaborative efforts in uncovering and combating large-scale fraud that transcends national borders and impacts EU funds allocated to member states like Romania.
For more detailed information regarding the criminal proceedings, the EPPO’s press release offers further insights. However, both OLAF and EPPO are currently limiting further disclosures to protect the integrity of the ongoing investigations and ensure that all lines of inquiry can be pursued effectively.
Background on Complementary Investigations
OLAF’s involvement in this case includes what is termed a ‘complementary investigation.’ This type of investigation, authorized under Article 12f of Regulation (EU, Euratom) No 883/2013, allows OLAF to investigate facts that are also under EPPO’s criminal investigation. The purpose is to facilitate administrative or financial actions that can run parallel to criminal procedures. These complementary investigations can be initiated either at the request of EPPO or by OLAF itself, provided EPPO has no objections. This framework ensures a comprehensive approach to dealing with fraud, combining both criminal and administrative angles to protect EU finances.
OLAF’s Core Mission
The fundamental mission of OLAF is to detect, investigate, and ultimately stop fraud that affects EU funds. This is achieved through several key functions:
- Conducting independent investigations into fraud and corruption related to EU money. This ensures that funds intended for projects promoting job creation and growth across Europe are not diverted.
- Building and maintaining public trust in EU institutions by investigating serious misconduct by staff and members within these bodies.
- Developing robust EU anti-fraud policies to prevent future occurrences and strengthen the financial integrity of the Union.
OLAF’s investigative powers are broad, covering all areas of EU expenditure, including major categories such as Structural Funds, agricultural policy funds, direct expenditure, and external aid. It also extends to certain areas of EU revenue, primarily customs duties, and to suspicions of serious misconduct within EU institutions. Upon concluding an investigation, OLAF provides recommendations to the relevant EU and national authorities, who then determine the appropriate follow-up actions. It is crucial to remember that all individuals involved are presumed innocent until proven guilty in a court of law, whether at the national or EU level.
Further Information
For media inquiries, Kirill GELMI, Spokesperson for the European Anti-Fraud Office (OLAF), and Theresa ZAHRA, Deputy Spokesperson, are available for contact. Their details are provided for journalists seeking further information, although it is noted that details on the current investigation are limited at this time to protect its progress. OLAF’s commitment remains to transparency and to providing information as and when it is appropriate, within the constraints of ongoing legal processes.
