Description: The purpose of the project was to build a multi-purpose sports facility with the overall objective of providing youth and children after and out-of- school activities, which could also contribute to improved health and the prevention of substance abuse. The project included the following activities and results:
- Construction of a football playground;
- Construction of three tennis courts;
- Project promotion;
The fraudulent actions took place during the project implementation (April 2008 – December 2009).
Case study category: Procurement fraud
ESI Fund(s) concerned: No ESI Fund/s was/were concerned. The project was funded by European Economic Area (EEA) and Norway Grants during the Financial Mechanisms 2004-2009
- Procurement fraud: conflict of interest, coordination of bids, price inflation, non-compliance of construction works with contract specifications and construction permit, missing procurement files.
- Cash payments fraud: missing audit trail, faking of account bank statements.
Reporting mechanism: Following allegations of fraud, the Donors of EEA and Norway Grants (i.e. Ministries of Foreign Affairs of Iceland, Liechtenstein and Norway) requested the Financial Mechanism Office (FMO) to perform ex-post audits. The audits revealed several shortcomings and irregularities, which led the Donors to conclude that fraudulent intentions lay behind and/or fraudulent actions took place in the course of the project.
IMS reporting: No