Luxembourg (dpa) – The European Court of Auditors has highlighted that ineffective information sharing among EU authorities hampers efforts to combat fraud involving EU funds. In a special report, the auditors criticized the current reporting system for suspected fraud cases directed to the anti-fraud office OLAF and the European Public Prosecutor’s Office (EPPO), which are tasked with safeguarding the EU’s financial interests. The Court recommends establishing a new system to streamline investigations and reduce administrative burdens.
The Court noted, “The current rules for reporting suspected fraud can result in duplicate submissions.” Between 2022 and 2024, a total of 27,000 reports were filed. There needs to be clear regulations on where these cases should be reported, and the Court suggests that all incoming reports be routed to a central archive.
At present, reports can be sent to both the EPPO and OLAF, with each agency determining its jurisdiction upon receipt. The EPPO handles criminal investigations, while OLAF focuses on administrative matters.
Court of Auditors: EU Commission requires enhanced oversight
The report also points out that the system fails to ensure all reports of suspected criminal activity reach the EPPO, with cumbersome procedures for transferring cases from OLAF to the EPPO and limited information exchange.
Additionally, the auditors criticized the EU Commission for not adequately following up on fraud investigation outcomes. In 2024, courts ordered national authorities to seize illegal proceeds totaling 232 million euros, reflecting total damages from criminal activities, not just EU budget losses.
“The Commission does not know if all funds owed to the EU budget are being recovered,” stated Katarina Kaszasova from the Court of Auditors. The EU Commission is in the process of reviewing its anti-fraud system and has accepted the recommendations outlined in the special report. (15 December)
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