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EPPO investigation in Romania and France in case of fraud with European, national funds of 30 million euros
Forty searches were carried out on Tuesday in several locations in Romania and France, as part of an investigation carried out by the European Public Prosecutor's Office (EPPO), in a case of fraud with European and national funds, in the amount of over 30 million euros.
According to a press release from the EPPO, in Romania the searches are carried out in Bucharest, Alba, Arad, Cluj, Constanta, Hunedoara, Iasi, Mures and Olt, the raids being carried out by the policemen of the Economic Crime Investigation Directorate.
Also, searches are being carried out in Roquebrune-Cap-Martin, in the south of France.
According to a press release from the Romanian Police, in the case, a method of providing false guarantee letters to the beneficiaries of projects financed by EU funds, which claimed to insure the projects against potential damages, is being investigated.
The investigation revealed that in the period 2020 - 2023, within the framework of several projects benefiting from EU funding, several letters of guarantee were allegedly issued by fictitious banks or financial entities, which would not have the necessary cash to cover insured damages.
According to the EPPO, for projects benefiting from European funding, the winner of the EU-funded contract must submit a letter of guarantee of good execution, issued by a financial institution, which undertakes to pay certain sums of money (the value of the guarantee), in case which services are not carried out correctly.
In addition, if the beneficiary of the funds receives a down payment, they must also submit a letter of guarantee to the contracting authority, ensuring the recouping of the money.
In the case investigated by the EPPO, it is assumed that the suspects allegedly issued letters of guarantee in the name of fictitious financial entities or with fictitious financial resources. In exchange for the release of the letters of guarantee, the suspects allegedly collected important sums of money, which they allegedly used in their own interest.