Investigations in EU Member States
Serious corruption in farming payments
In March 2024, OLAF closed the last of its six investigations into the ‘Dobytkár case, the Stock breeder corruption scandal, as it became known. The investigation uncovered around €10 million of bribes being paid by farmers to Slovak officials to illegitimately access EU agricultural funds.
Working closely with Slovak national law enforcement and judiciary, OLAF helped uncover systemic and widespread use of bribes to ensure the undue approval of rural development projects for EU co-financed subsidies from 2015 until 2020.
Our investigations focused on 39 projects including the purchase of heavy farming equipment, modernisation of farming infrastructure and renovation of rural premises.
The investigations established that, in addition to bribery, numerous irregularities occurred including conflict of interest, tender manipulation, irregular sub-contracting, inflated project costs and improper implementation.
OLAF recommended the recovery of €7.5 million paid from the European Agricultural Fund for Rural Development and the immediate reimbursement of €2.5 million of European Investment Bank loans which had contributed national support to the projects. Specific criminal acts by suspected beneficiaries, suppliers, consultants and individuals associated with the projects were reported to the Slovak judicial authorities.
Fraud and the machine
Cooperation with our partners at EU and national level often delivers the most effective results. This was the case in one investigation in Czechia, where we worked closely with the National Organised Crime Agency and the European Public Prosecutor’s Office (EPPO)
In 2022, we opened an investigation into four projects co-financed by the EU aimed at improving productivity in the manufacturing sector of Czechia.
The investigation concerned the purchase of specialist machinery, via the European Regional Development Fund, that was to be used for the manufacture of precision metal parts in industrial production.
In cooperation with the National Organised Crime Agency of Czechia and the EPPO, we provided analysis of the purchased machinery and intelligence gathered from EU and non-EU suppliers. Our work ascertained that the companies had purchased second hand machinery and claimed it as new. Not only was the machinery ineligible for funding but it was not used for its stated purpose.
The effective cooperation between OLAF, the EPPO and national authorities led to a recommendation for the recovery of almost €4 million to the EU budget and charging 13 people and three companies with subsidy fraud.
Bribery and corruption affecting 112 EU co-financed projects
In July 2024, OLAF closed its investigations into a corruption network in Hungary, uncovering a web of bribery and other illegal activities that affected 30 billion Hungarian Forints (€75 million) of EU funds linked to 112 projects.
From 2015 to April 2022, an employee of the Ministry of National Economy (later Ministry of Finance) created and operated a well-organised corruption network, which involved several employees of the ministry, including senior government officials, who unlawfully intervened in various stages of the project applications’ evaluations and project management procedures and received in exchange millions of Forints. They also offered their “help” to arrange favourable treatment of potential grant applications, appeal procedures and promised favourable results of on-the-spot checks.
For two years, we provided analysis and coordinated with the national prosecutor and the Commission services to ensure the recovery of funds, and the adoption of administrative measures to reinforce internal controls and processes in order to ensure a more transparent management of EU funds.
The 112 projects affected by the corruption network were meant to provide subsidies to small and medium enterprises for innovation and competitiveness. The funds recovered can be invested in other, regular projects to fulfil their goals.
Following the investigation, the Hungarian Central Prosecutor's Office indicted 54 persons for corruption, bribery, abuse of a function and abuse of authority.
Family business in academia
Ensuring that Europe remains one of the best places to study in the world is a key priority for the European Commission. In order to achieve this aim of academic excellence, the Commission makes a wide array of funds available. These funds range from giving EU students the opportunity to study in another EU country thus enriching their educational and cultural experience, to providing funding to help promote research and development to drive forward EU competitiveness.
Between 2022 and 2024, OLAF uncovered irregularities in the procurement of an EU-funded planning and document management software system for a university in Poland. Our investigators also exposed a network of family ties among the stakeholders involved in the project.
OLAF revealed a scheme in which a leading software provider was invited by the university to participate in the definition of the terms of reference for the tender. Gathering detailed information from the market leader allowed the university to rig the tender process to exclude this market leader.
The winning tenderer would fulfil the restrictive tender conditions thanks to the experience and qualified personnel provided by a declared sub-supplier. However, we established that just after the contract was signed, the implementation team was sacked, and the declared sub-supplier was ditched and replaced by a new sub-supplier.
Our investigation also uncovered evidence of conflict of interest as not only had the university hired an employee of the first sub-supplier who subsequently drafted the tender conditions, but a relative of a board member from the second sub-supplier was also promoted to a senior management post in the university.
As a result of the investigation, OLAF recommended a recovery of 100% of the tender value, amounting to more than €2 million.
No interest in conflict of interest
OLAF investigation into a project intended to facilitate the digital transition of enterprises funded by the Recovery and Resilience Facility identified a conflict of interest affecting €362 104 in Portugal.
Our investigation ascertained that in the early stages of the selection process a conflict of interest was identified and brought to the attention of the body tasked with implementing the funding. However, despite the disclosure of the conflict of interest, the competent body failed to request the suspension of the corresponding activity.
We also established that the competent body failed to prevent or properly address the conflict of interests in question, amounting to a clear breach of RRF rules and the Financial Regulation.
OLAF issued administrative recommendations inviting the Portuguese body to implement corrective measures to ensure proper handling of conflict of interests.
OLAF and our anti-fraud partners are building up knowledge in handling greater prevalence of performance- based EU instruments, such as the RRF. Also, with a view to the next multi-annual financial framework, it will be important to ensure a harmonised and strong level of protection of EU funds.
Unsporting behaviour
The Commission has helped create a European Health Union that protects the health of its citizens. One way this is done is by providing funds to build sports centres that contribute to physical and mental health and well-being.
OLAF uncovered a conflict of interest that affected EU funds meant for the construction of a sports facility in Germany.
Our investigators gathered evidence to show irregularities and conflicts of interest in the implementation of the project and a conflict of interest involving the local municipality during the procurement procedure.
Following the investigation OLAF recommended to exclude €875 345 from EU financing.
Something NEET quite right
We conducted an investigation related to European Social Fund (ESF) grants allocated to educational establishments in Spain for hiring support technicians in the field of research, development, and innovation.
Our focus was on those hired under the category ‘not in employment, education, or training’ (the so-called NEET). To be eligible to be employed under the NEET category you had to be unemployed and not in training or education at the time of recruitment.
Working closely with national authorities, we confirmed that there was a significant breach of these requirements across the beneficiaries that were assessed during the investigation. OLAF uncovered that all those that were recruited as NEETs, were in fact all either already employed or in education or training.
Even though the national authorities put in place control mechanisms, they had not verified if those that claimed to be NEETs met the criteria.
OLAF recommended €1.5 million be recovered to the EU budget.
Our investigators also concluded that the controls in place were not effective enough to detect all the potential irregularities and recommended a reinforcement of these controls at a national level. Wherever possible, OLAF’s findings in individual cases should also lead to systemic improvements to the way EU funds are used.
Shedding light on contract
OLAF investigated irregularities in a procurement procedure co-financed by the European Regional Development Fund (ERDF) to supply energy services in a town in Spain.
The main goal of the project was to award long term contracts for refurbishing and upgrading public lighting and the management of energy services.
Our investigators established that the contracting body imposed disproportionate financing requirements during the procurement procedure. These requirements artificially restricted the number of parties who could apply for the contract, steering the process in an unfair direction.
Following the investigation, we recommended the recovery of some €820 000 to the EU budget.
Finders keepers!
OLAF and the European Public Prosecutor’s Office (EPPO) tackled a complex fraud and forgery case involving over €20 million in EU funds tied to a water supply and wastewater infrastructure project in Romania.
The investigation focused on an Italian gang that had established multiple front companies in Italy and Romania from 2018 to 2021. These Romanian entities secured five EU-funded contracts, with four acquired through forged documentation. One forgery pertained to a supposed support company, falsely claiming experience working in Iraq with fabricated documents to bolster their assertion. Further scrutiny revealed the company had never operated in Iraq. Moreover, during the bidding process, the support company inflated its annual turnover using fraudulent documents to misrepresent its economic, financial, technical, and professional capabilities.
Upon securing the contracts, the winning bidders disbursed approximately 1.5% to 2% of the total project value, about €1 million from EU funds to this deceitful support company. Additionally, a "finder’s fee" was paid to two intermediary Romanian companies that facilitated contact with the support company.
In November 2024, OLAF recommended to recover the full €20 million disbursed from the Cohesion Fund for these compromised contracts. This case highlights how robust coordination between OLAF and the EPPO can effectively safeguard EU taxpayers' interests.
In more general terms, OLAF’s investigations have uncovered a new trend affecting Italian companies that are subject to ‘anti-mafia interdiction’ measures. These measures aim to prevent organised criminal gangs from profiting from public contracts.
However, some of these companies have found a loophole by registering in a different EU Member State, allowing them to participate in, and in certain instances, secure substantial public tender contracts in other EU Member States. This is despite the fact that the ‘anti-mafia interdiction measures’ exclude them from being part of national public procurement procedures. We have observed that these interdiction notices (issued by Italian authorities) have a limited legal effect and do not constitute a statutory barrier to participation, even in scenarios where EU funds are involved.
With a mandate to safeguard EU financial interests and prevent criminal infiltration, we work to strengthen cooperation with relevant national authorities to address these transnational challenges. More specifically, we aim at developing mechanisms for the exchange of information regarding companies subject to interdictions that are active in EU procurement processes. We are also exploring potential synergies between national measures and EU-level preventive tools. And finally, we promote and strengthen efforts to enhance Member State awareness concerning the efficacy of anti-mafia interdictions.
A ‘rubbish’ Greek tragedy
In 2022 OLAF launched a gripping investigation into a solid waste Greek landfill project. When the dust settled in 2024, the findings were nothing short of scandalous. An intricate array of irregularities emerged, culminating in a staggering €1 million loss for the EU. This landfill, constructed in 2016, lay dormant for its first three years of existence. When it finally sprang to life in 2019, it operated in bold defiance of environmental laws, without a fire safety licence, and far beyond its permit as an urban solid waste facility. It morphed into a chaotic dumping ground for all sorts of refuse, with equipment either shattered or useless.
Ultimately, we discovered that the landfill in question was not even eligible for EU funding and was incorrectly included in the eligible expenditure by Greek authorities.
We recommended that €1.165 million be returned to the EU budget.
Supporting Ukraine with a €114 million investigation
In 2024, OLAF wrapped up its investigation into significant breaches of procurement rules, transparency, and financial management concerning a €114 million EU-funded project overseen by Poland's Government Agency for Strategic Reserves (RARS). The project aimed to procure and deliver power generators to Ukrainian regions suffering from power shortages.
Thanks to our efforts, €91 million has been earmarked for recovery, with an additional €22 million saved from being improperly spent.
Collaborating closely with the Central Anti-Corruption Bureau (CBA) and the Polish Public Prosecutor’s Office, our investigation resulted in the arrest of several individuals. The collected evidence uncovered rampant overpricing, restricted competition, and undue favouritism towards certain contractors. Despite RARS's refusal to cooperate fully, we concluded that its procurement process flagrantly violated principles of transparency, fair competition, equal treatment, and fiscal responsibility. Contracts were awarded without true competitive bidding, undermining the effective allocation of EU funds.
Moreover, we found that RARS extended improper advantages via large advance payments to contractors without adequate safeguards, exposing EU finances to severe risk. Some contractors billed the agency up to 40% over their purchase costs, severely overpricing the EU-funded generators.
Supporting our Ukrainian allies against unwarranted Russian aggression remains a top EU priority. OLAF and its partners are committed to ensuring that EU financial and technical resources deliver maximum impact for Ukraine and its citizens.