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2016 OLAF Report: Romania ranks first for number of completed investigations
Romania ranks first in the top of countries where the European Anti-Fraud Office (OLAF) completed most investigations last year, (21), of which 11 were concluded with recommendations. Also Romania ranks first for the number of indictments made with OLAF recommendation and for the number of cases in which judicial authorities rejected the file. From the frauds reported in 2016, 33 came from private sources and two from public ones.
According to OLAF report for 2016, in the top of countries with investigations about European funds, Romania is followed by Poland (16 investigations of which 8 completed with recommendations) and Hungary (13 investigations of which 11 with recommendations.)
On the overall, OLAF completed 141 investigations last year.
The report gives details on cases of irregularities or frauds recorded in every EU member state, in the sector of customs duties and agriculture.
In Romania, authorities reported, over 2013-2016, 305 cases if frauds and irregularities which affected customs duty collection. They represented 4.05% of the total amount collected from customs duties in the period taken into account.
In its turn, OLAF completed 22 investigations about customs duties, with an impact of 2.04% of the total.
In these conditions, Romania ranks 8th for this chapter, at great difference from Germany, where national authorities reported 7,316 irregularities and OLAF completed 27 investigations.
Based on sector recommendations, member states must report the European Commission any irregularities or suspicions of fraud that lead to damages exceeding 10,000 euros.
Giovanni Kessler, the general director of OLAF, said in September 2016 that there is corruption in almost all public institutions and customs services in Europe.”
As for structural funds and funds for agriculture, Romanian authorities reported 4,857 cases to Brussels, with an estimated impact of 5.65% over 2013-2016. In its turn, OLAF concluded 99 investigations in this sector.
For the total number of cases reported by national authorities, Bucharest ranks second, after Madrid (9,866 cases).
In parallel, Romania ranks first for the number of indictments made upon OLAF recommendation, and for the number of cases in which judicial authorities rejected the file.
Of the total of 74 cases in which national authorities took measures following recommendations made by OLAF over December 1, 2009- December 2016, Romania made indictments in 24 cases.
Until last year, Romania had not made any decisions in 28 cases. OLAF explains that in the last category, there are cases in the “report period”.When OLAF sends a judicial recommendation to a member state, competent authorities must report actions taken in 12 months.
The office report also shows that in Romania’s case, most fraud cases were reported from private sources (33), compared to the number of two.
OLAF points to the fact that many fraud cases in the field of acquisitions are transnational and the new type of scenario often involves an authority in a member state which concluded contracts and offerers from several member states which subcontract works to companies from other countries from the community block.
The office offers an example in which Romania and Bulgaria are involved. A criminal group from Bulgaria used a complex plan of ghost purchases, sales companies and off shore accounts to hide the money received in exchange of corrupting high officials from an agency which made payments to finance food programs for the poorest European citizens. That agency was based in Romania.
Officials made false declarations and down payments for products which were never delivered. 26.7 million euros from EU budget were thus stolen. Moreover, the criminal group made profit of 5.98 million euros from the illegal sales of products in the free market.
During the investigation, OLAF discovered that the group acted at least in 8 different countries, six of which were EU member states.
The office concluded the investigation in the case and recommended the European Commission to recover 26.7 million euros. Judicial procedures still continue in Romania and Bulgaria.
The mission of OLAF is to identify, investigate and stop acts of fraud involving European funds.