Foreword

It is with great pleasure that I present the latest edition of the annual report of the European Anti-Fraud Office (OLAF), covering the period from 1 January 2023 to 31 December 2023.

The report presents an overview of OLAF’s investigative results and highlights some of the fraud trends identified in the last year such as smuggling, counterfeiting, manipulation of procurement procedures and kickback schemes.

OLAF performed strongly in 2023, concluding 265 investigations, opening 190 new ones, recommending the recovery of over €1 billion to the EU budget, and preventing almost €210 million of EU funds being lost to fraud. The report highlights some of the most significant cases closed in 2023, including irregularities in the European Structural and Investment Funds and the Cohesion Fund.

2023 was about continuing fighting fraud on all fronts. This report contains numerous examples of cases where OLAF and partners have worked together to help protect the EU’s financial interests, citizens, economy and rule of law.

One recurring theme throughout the report is OLAF’s commitment to cooperation. Since starting its operations in 1999, the Office has worked together with partners in the EU and beyond, sharing important data to deliver results.

Cooperation with national authorities allowed us to help seize 616 million illicit cigarettes, 140 tons of raw tobacco and 6 tons of water pipe tobacco, preventing the loss of over €151 million to EU and national budgets. Additionally, OLAF helped impound over 6 million litres of illicit wine, beer and spirits.

Ukraine was the focus of many of our activities in 2023. The EU budget enabled €19.5 billion in short-term assistance, including an unprecedented support package of €18 billion in concessional loans to Ukraine. OLAF helped protect this funding by providing training for Ukrainian anti-fraud authorities and also worked with Member States to help detect and investigate attempts to circumvent EU sanctions against Russia and Belarus. OLAF also carried out investigations into potential fraud against EU funds in Ukraine, one of which is featured in this report.

By the end of 2023, the EU had distributed just under €300 billion of Recovery and Resilience Facility (RRF) funding to Member States, to help economies recover from the COVID pandemic and strengthen resilience. OLAF continues to investigating allegations of fraud against the RRF. An example of such an investigation is featured in the report.

Since 1999, we have built a wealth of experience in detecting, investigating and preventing fraud across the world. Fraud has changed over the years, with more illicit activities being carried out digitally and often spanning over multiple countries and even continents! As the European Anti-Fraud Office we had to adapt and upgrade our skills and methods, with a greater emphasis on digital forensics and data gathering and sharing.

However, what has not changed, is the damage that fraud causes to citizens, markets, institutions and society as a whole.

From this perspective, the report highlights a significant case of fraud against a project funded by the European Social Fund aimed to help vulnerable groups get back into the workplace and avoid financial insecurity. By diverting these funds, fraudsters denied vulnerable people a chance for a better future.

While this report focusses largely on how OLAF identifies, investigates and prevents fraud and corruption, it is always worth bearing in mind why OLAF does what it does. We protect the EU budget and warrant fairness and a level playing field for citizens end economic operators, while ensuring the integrity of EU institutions and staff at the same time. It is a mission that OLAF has carried out for 25 years and will pursue for many more to come.

Of course, none of the achievements in the report would have been possible without the work and dedication of OLAF staff, our most valuable asset. I take this opportunity to express my deep appreciation to all my OLAF colleagues for their professionalism, hard work, commitment and motivation. This report is a testament to them all!

Ville Itälä
Director-General of OLAF