The European Anti-Fraud Office Duan STERLE - PowerPoint PPT Presentation

The European Anti-Fraud Office Dušan STERLE dusan.sterle@ec.europa.eu

OLAF’s MANDATE The mission of OLAF is threefold: l To protect the financial interests of the European Union by combating fraud, corruption and any other illegal activities ; l To protect the reputation of the European I nstitutions by investigating serious misconduct by their staff that could result in disciplinary or criminal proceedings; and l To support the European Commission in the development and implementation of fraud prevention and detection policies . 3/ 13/ 2012 2

OLAF ROLE AND LEGAL BASI S European Institutions‘ Service Platform for its independent national and Union investigative service partners Legal Basis Comm Decision Regulation (EC) Article 325 1999/ 352/ EC, No 1073/ 1999 TFEU ECSC, Euratom 3/ 13/ 2012 3

LI SBON TREATY - ARTI CLE 3 2 5 TFEU 1. The Union and the Member States shall counter fraud and any other illegal activities affecting the financial interests of the Union [ … ] 2. Member States shall take the same measures to counter fraud affecting the financial interests of the Union as they take to counter fraud affecting their own financial interests. 3. [ … ] the Member States shall coordinate their action aimed at protecting the financial interests of the Union against fraud. To this end they shall organise, together with the Commission, close and regular cooperation between the competent authorities. 3/ 13/ 2012 4

OLAF’s STATUS • Dual character of OLAF: 1 . Adm inistratively: part of the European Commission 2 . Full investigative independence: - Director General of OLAF - Secure and independent IT case management system - Supervisory Committee 3/ 13/ 2012 5

OLAF – History and Overview 1999 – creation of OLAF 2012 – reorganisation of OLAF BUDGET 2 0 1 1 BUDGET 2 0 1 1 € 58 Mio for the current administration (salaries, building rents, missions, training etc.) € 21 Mio for anti-fraud programmes and policies STAFF 2 0 1 1 STAFF 2 0 1 1 Approx. 500 staff with various specific profiles 3/ 13/ 2012 6

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ANTI -FRAUD POLI CY l Com prehensive anti-fraud policy » Anti-fraud strategy and legislation » Fraud prevention including risk analysis » Cooperation with MS and non-EU countries, including technical/ financial support/ training (Hercule, Pericles) » Reporting, awareness raising 3/ 13/ 2012 8

OLAF I NVESTI GATI ONS l OLAF carries out ADMI NI STRATI VE I NVESTI GATI ONS » I nternal investigations: fraudulent or corruptive behaviour of all EU-staff and members of the EU institutions, including Members of Parliament » External investigations : into beneficiaries of EU funds/ ´ economic operators’ (commercial companies, charities/ NGO’s etc.) - EU- and worldwide » Coordination cases: OLAF contributes to investigations carried out by national authorities or EU bodies 3/ 13/ 2012 9

Fraud Notification Whistleblower Report from System the EU body Informants Press Selection of Cases article OLAF Director General‘s Decision Case dismissed Investigation or Coordination case OLAF Director General‘s Decision Recommendations No recommendations Judicial Financial Disciplinary 3/ 13/ 2012 Administrative 10

OLAF’s I NVESTI GATI ON TOOLS l I nterview s with informants, witnesses and persons concerned l I nspection of premises l On-the- spot checks l Forensic and operational intelligence analysis 3/ 13/ 2012 11

THE RESULTS OF OLAF I NVESTI GATI ONS Following its investigations OLAF makes RECOMMENDATIONS: l FI NANCI AL : recovery of misused funds l JUDI CI AL : transmission of final report to the relevant national authorities recommending legal action l DI SCI PLI NARY : the case is referred to the authority having disciplinary powers in the relevant EU institution l ADMI NI STRATI VE : changes to procedures OLAF monitors the implementation of the recommendations 3/ 13/ 2012 12

OLAF‘s GOVERNANCE – HOW I S OLAF CONTROLLED? l OLAF Supervisory Com m ittee l Control by the European Court of Justice l Reporting obligations (to European Union Institutions – European Parliament and Council) 3/ 13/ 2012 13

OLAF‘s PARTNERS NATI ONAL LEVEL: l Competent EU-Member States authorities (administrative/ control bodies, police and customs officers, judiciary… ) Authorities in non-EU countries with similar competences Legal basis: international cooperation agreements, financing/ grant agreements, cooperation arrangements l EUROPEAN LEVEL: Europol, Eurojust, European Investment Bank, European Court of Auditors l I NTERNATI ONAL ORGANI SATI ONS: World Bank INT, UN Internal Oversight Office (OIOS), UNDP, World Food Programme, Global Fund, Inter-American Development Bank, African Development Bank, African Union Commission, etc. 3/ 13/ 2012 14

HOW DOES OLAF COOPERATE W I TH I TS PARTNERS ? l Sharing of information and expertise l Assistance in inspections and on-the-spot checks l Negotiation and implementation of Adm inistrative Cooperation Arrangem ents ( ACA) in order to facilitate practical day-to-day cooperation l Conferences, trainings, staff exchange 3/ 13/ 2012 15

AFCOS A nti- F raud C o- o rdination S ervice It is a national contact point within each new Member State or Candidate Country which is intended to facilitate OLAF and Member States to fight more effectively against fraud. 3/ 13/ 2012 16

LOCATI ON OF THE AFCOS HR CZ CY Ministry of Finance Treasury of the Ministry of Finance I ndependent Departm ent for Republic of Cyprus Control Departm ent Com bating I rregularities and Fraud TR BG Ministry of I nterior Prim e Ministry AFCOS Directorate I nspection Board EE RO Ministry of Finance Departm ent for Fight Financial Control Against Fraud ( DLAF) Departm ent SK HU Governm ent Office Ministry of Finance Section of Control and National Tax and Fight Against Corruption Custom s Adm in. SI LT Ministry of Finance Ministry of I nterior Budget Supervision Financial Crim e and Office I nvestigation Service MT LV PL Office of the Prim e Minister Ministry of Finance Ministry of Finance I nternal Audit and Treasury Control ( I AD) I nvestigations Directorate 17

MAI N TASKS OF THE AFCOS l Co-ordination of legislative, administrative and operational obligations and activities related to the protection of EU finances l Facilitating co-operation between national authorities and the Commission (OLAF) l Monitoring the exchange of information between national authorities and the Commission (OLAF) l Communication of frauds/ irregularities l Ensuring and facilitating recovery of unduly paid funds l Liaising with Prosecution authorities on criminal investigations 3/ 13/ 2012 18

OLAF’s ACHI EVEMENTS l How m uch does OLAF cost EU tax payers? » OLAF’s budget in 2011; € 58 million (administrative costs) » OLAF also supports organisations in Member States and non- EU countries with € 20 million in grants and project funding to fight against fraud l Since 1 9 9 9 , OLAF has com pleted 3 9 9 1 investigations: » 342 individuals received prison sentences for a total of 1 496 years » Over €1.8 billion of EU money has been recovered l I n 2 0 1 1 , OLAF investigations resulted in: » € ??? million recovered to the EU budget » A cumulative 58 years of imprisonment (80 including suspended sentences) » Imposed financial penalties totalling nearly € 3.5 million 3/ 13/ 2012 19

I NVESTI GATI ONS OPENED I N 2 0 1 1 3/ 13/ 2012 20

FUTURE CHALLENGES l An European Public Prosecutor's Office ( EPPO) ? » Establishment foreseen in the EU Treaty (Art. 86) » Mandate: investigating and prosecuting crimes affecting the financial interests of the EU » Prosecution in the competent courts of the EU MS » European procedural rules? European jurisdiction? » Legislative initiative planned for 2013 3/ 13/ 2012 21

Thank you for your attention! 3/ 13/ 2012 22