Description: A beneficiary from country X received EU co-financing to set up an innovative production line. The production line was delivered to the beneficiary company by its mother company, based in country Y (another EU member state), which was selected through a tender procedure. The main components of the innovative production line, produced by different European companies, were provided by a subcontractor located in country Z (outside the EU), belonging to the same group as the mother company of country Y.
Case study category: No real tender procedure
ESI Fund(s) concerned: European Regional Development Fund (ERDF)
Irregularity type: The following irregularities were detected:
- Manipulation of tender
- Conflict of interests
- Premature start of the project
- Inconsistencies related to the actual costs of the project
Reporting mechanism: OLAF received the information via its own channels of communication.
IMS reporting: Yes