EU Audit Finds 19 Suspected Fraud Cases in EU-Funded Projects
In a recent audit, the European Court of Auditors discovered 19 cases of suspected fraud in EU-funded projects. This is not a direct reflection of fraud or mismanagement, but rather an estimate of funds not used in accordance with EU regulations. The estimated error rate for last year was 3.6 percent, the lowest in years.
The error rate is mainly due to incorrect payments in EU structural funds, intended to support underdeveloped regions. These errors include using funds for non-eligible projects, making improper reimbursements, and violating procurement rules. Despite the reduction in the error rate, persistent weaknesses in oversight and accountability mechanisms remain.
The estimated €6 billion illegally spent from the EU budget last year is a cause for concern. The risk to the EU budget is further increased by projected debt accumulation, with EU debt expected to reach over €900 billion by 2027. The United Nations' Obligations Office for Investigations and Anti-Fraud (OIOS) and the UN Office for Project Services (UNOPS) have been investigating these suspected cases of fraud and mismanagement.
The discovery of 19 suspected fraud cases in EU-funded projects highlights the need for continued vigilance and improvement in oversight mechanisms. While the error rate has decreased, the potential misuse of funds remains a significant concern. EU authorities, including the European Court of Auditors and OLAF, will continue to investigate and address these issues to ensure the proper use of EU funds.
