EU – corruption and money recovery
So much of corruption and the monies that have been stolen is viewed through the lens of arrests, with subsequent actions, which can include trials, negotiated settlements and then recovery of the illegal proceeds. Euractiv addresses the problems that ensue in these processes and should be considered when addressing anti-corruption within the enforcement process at the European Commission. The excitement of finding corruption as reported on by media is one step and statistics that are highlighted in this article is a reminder that the entire process might need review, as evidenced by a new report from the European Court of Auditors (ECA). The “EU’s historical anti-fraud body OLAF found that €615 million should be paid back to the EU budget after its fraud investigations, the report shows. But by the end of 2024, only €23 million of that money had actually been recovered.” On the other hand, the newer European Public Prosecutors Office (EPPO) has been more successful, in that they were able to freeze € 2 billion potential fraudulent assets, and recovered € 232, but much of the monies that were returned came from national budgets, not from the European Commission’s budget.
Why should we care and what should be done? It is always important to ensure that if fraud is adjudicated and the court orders return, it should be returned, in the case of the EU, to the commission. This is important as a deterrent as well as providing a feeling of success to the agencies who were a part of these actions. In the case of OLAF, unfortunately the challenge is that they can investigate, but they can’t prosecute, and the recommendations have to be agreed upon in a more administrative way. With all of this in mind, the report by the ECA, will provide an opportunity to make changes to a successful group, during a time when more fraudsters are trying to get their hands on EU monies. We hope that this will be an impetus to all the commission members to review how OLAF should work in the future.
Link:
https://www.euractiv.com/news/eu-relies-on-paperwork-to-fight-fraud-and-it-shows-auditors-find/