OLAF investigations ranged from major undervaluation fraud cases where fraudsters made profit from declaring falsely low values for goods at import in the EU, to organised crime groups defrauding funds destined for agriculture, or cases where investigators uncovered fraud in large infrastructure projects.
Trends in anti-fraud investigations, as well as specific cases and operations led by OLAF are presented in the annual report which was published at a news conference at its Brussels HQ on Wednesday.
At the press conference, the Office’s acting Director-General, Nicholas Ilett, said, “Our investigative performance in 2017 shows that our work is essential in protecting EU taxpayers’ money and ensuring that EU funds do not fuel fraud and corruption instead of financing projects that can bring real added-value to citizens.”
One case he highlighted involved EU funds going to a scheme in Italy to build hovercraft. In reality, the money was used to pay off the mortgage of a huge country house in the country. As a result of Olaf’s inquiries, the Italian authorities intervened and fraud charges brought against those responsible.
OLAF concluded 197 investigations, issuing 309 recommendations to the relevant national and EU authorities.
It recommended the recovery of over €3b to the EU budget. This exceptionally high figure stems from major undervaluation fraud cases concluded by OLAF during the year.
OLAF opened 215 new investigations, following 1111 preliminary analyses carried out by OLAF experts.
In the absence of any staff increase and despite the complexity of the cases it dealt with, OLAF says it succeeded in further reducing the duration of its investigations to 17.6 months overall.
Ilet also pointed to the transnational dimension of its work which, he said, allows OLAF to form a “unique” view of the changing nature of fraud across Europe.
The report says that corruption, conflict of interest and the manipulation of tender procedures continue to be encountered in fraud cases affecting EU structural funds/
The office says that fraudsters have increasingly attempted to defraud funds destined for research or the refugee crisis and the evasion of customs duties is orchestrated through transnational criminal schemes.
Ilet, a former UK civil servant who is stepping down from his current post, said, “OLAF has a unique role in fighting revenue fraud through global investigations.”
He said the report gives an overview of its activities aimed at protecting EU revenue, with the conclusion of a string of investigations in this area in 2017.