International investigations

Georgia on OLAF's mind

OLAF investigated an alleged fraud related to a major road project in Georgia costing €220 million which was primarily funded by the European Investment Bank (EIB), with €20 million coming from the European Commission (Neighbourhood Investment Facility).

OLAF conducted the investigation in close cooperation with the EIB’s Investigation Division and received excellent cooperation from the Office of the Prosecutor General of Georgia.

OLAF found that a member of an engineering consortium contracted to advise a national ministry on the construction project had a conflict of interest. The member had recommended a company linked to a Chinese contractor to provide expert advice suggesting changes in the design of the highway, from which the contractor benefitted.

OLAF also found that the Chinese contractor employed Ministry officials who had been previously involved in the planning and oversight of the construction project.

The investigation was concluded with financial recommendations to the European Commission and the EIB to recover over €10 million representing the total costs paid in respect of the services contract signed with the Engineering Consortium.

OLAF forwarded the results of its investigation to the Georgian Authorities.