Description: A large-scale investigation involving OLAF and several Member States through the Fund for European Aid to the Most Deprived (FEAD), which complements the European Social Fund, regarding a project in Romania to provide food for people in need. The fraud occurred at the initial stage of implementation when the Bulgarian company that won the tender, “Company X”, failed to deliver the food despite receiving the funds.
Case study category: Money laundering and off shore companies
ESI Fund(s) concerned: Fund for European Aid to the Most Deprived (FEAD) and European Social Fund (ESF). This fund complements the actions under the European Social Fund. For the period 2021-2027 FEAD will be merged with ESF under the name of “ESF+ Regulation”
- Documental fraud.
- Transnational fraud.
Reporting mechanism: The suspected fraud was reported after non-implementation of the contractual obligation – delivering food for the most deprived in Romania.
IMS reporting: Yes