Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 1 21 March 2005 Istanbul – 21 March 2005 Luc Schaerlaekens Unit A2: Strategic Programming, Reports, Consultative Commitee, External Relations

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 2 21 March 2005  History  Structure  What is OLAF?  Operations

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 3 21 March 2005 OLAF’s history  Pre-1988, Investigations carried out by individual services of the Commission ( DG VI and DG XXI )  In 1988, UCLAF was formed to co-ordinate investigations.  In 1995, these investigation units and UCLAF all merged to make one investigation unit

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 4 21 March 2005 OLAF’s history  OLAF succeeded the Task Force for the Co-ordination of the Fight against Fraud (UCLAF) of the Commission, set up in 1988  OLAF was created on 1 June 1999, following the resignation of the Santer European Commission  OLAF is able, unlike UCLAF, to conduct investigations within the European institutions  OLAF is an independent office

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 5 21 March 2005 OLAF OLAF is:  An autonomous office in the European Commission which carries out investigations and other measures to protect the interests of the European Union  OLAF is a hybrid body - it is part of the Commission but it has administrative autonomy and a budget set by the European Parliament OLAF is not:  A police force

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 6 21 March 2005 Institutional status  Operational independence in the conduct of investigations  Special position of the Director-General  AIPN  Protection against removal  Power to sue Commission  But OLAF is also a Commission service  Responsible for anti-fraud policy  Subject to Commission rules and procedures

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 7 21 March 2005 OLAF’s tasks Three main areas: 1)Investigations and co-ordination 2)Intelligence 3)Development of anti-fraud policy

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 8 21 March 2005 OLAF’s Organisation chart

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P 9 21 March 2005 Directorate A – Policy, Legislation & Legal affairs  Defines the overall anti-fraud strategy of the Office  fraud-proofs legislation and drafts the requisite legal instruments  handles follow-up activities relating to recovery.

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Directorate C – Operational & Strategic Intelligence & IT  Gathers intelligence from operational activity which may then be used for operational purposes eg special exercises  Gathers intelligence for strategic purposes to assess trends and potential areas of illegal activity on the wider scale  Is responsible for matching technical aids to investigations with the operational side.  IT infrastructure within OLAF and externally

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Directorate B - Investigations  Carries out administrative investigations both internally and externally  Co-ordinates investigation-related activities between the involved parties – eg on-the-spot checks etc.  Consists of specialists and high-level experts in their various fields from services used to handling complex fraud cases eg Police, Customs, Lawyers, Anti-Corruption etc.  Is not empowered to carry out criminal investigations

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination OLAF’s mandate for investigation  Per Regulation (EC) No 1073/1999 concerning investigations conducted by OLAF: OLAF shall exercise the powers of investigation conferred on the Commission in order to step up the fight against fraud, corruption and any other illegal activity affecting the financial interests of the European Community. (According to Commission Decision 352/1999, OLAF should also be responsible for the protection of the Community’s non- financial interests from irregular acts likely to lead to penal or administrative proceedings)

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination OLAF has no judicial powers; it therefore conducts  Administrative investigations. There are two main categories of investigation:  Internal investigations (within the European institutions)  External investigations (into individuals or entities outside the European institutions)

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination  Eight sectors in investigations and operations 1Internal investigations 2Eurostat task force 3External aid 4Direct expenditure 5Multi-agency investigations 6Structural actions 7Agriculture 8Customs

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination  How does a case come to OLAF? Sources of initial information:  Informants  Whistleblowers  Witnesses  Anonymous sources  European institutions  Member states  Third countries  Strategic intelligence  The Free Phone

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination  What happens to a new case when it comes to OLAF?  Receipt of the documentation is registered.  The matter is allocated to one of the eight specialised investigation sectors for preliminary review.  If the matter appears potentially relevant to OLAF, a case number is assigned.  An investigator is asked to evaluate the case.  The evaluator provides a report to the Executive Board.  The Board then designates the case in one of six types.

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination Six types of case 1Internal case 2 External case 3Co-ordination case 4 Criminal assistance case 5Monitoring case 6 Non-case

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination OLAF’s powers In external investigations:  To carry out unannounced on-the-spot inspections within member states, after informing the relevant authorities (Reg 2186/95)  To demand information and assistance from the authorities of Member States (under the EC treaty and Reg 1073/99)  No power to interview individuals  All other information must be sought voluntarily

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination OLAF’s powers In internal investigations:  To have immediate and unannounced access to information held by European institutions  To demand explanations (at interview) from members of European institutions  To carry out unannounced on-the-spot inspections within European institutions

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination  OLAF has no judicial powers  When OLAF suspects that a criminal offence may have been committed, it must pass the case to the relevant judicial authorities  OLAF has no disciplinary powers  When OLAF considers that a member of the European Commission may have committed irregularities falling short of criminality, it passes the case to be investigated by IDOC, the Commission’s disciplinary authority

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination How is an OLAF case closed?  The investigator produces a Final Case Report  On the basis of this, the Executive Board decides to close the case.  Three possibilities -  Closed without follow-up (No irregularities found)  Closed with follow-up (A follow-up case is then opened)  Closed because follow-up completed (The closure of the follow-up case)

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Investigations and coordination Types of follow-up  Disciplinary (OLAF Unit 0.4) (Reference to IDOC)  Judicial (OLAF Unit 0.4) (Reference to national authorities for criminal investigation)  Administrative (OLAF Unit A.3) (Recommendations to reform procedures in the institution)  Legislative (OLAF Unit A.1) (Recommendations for new legislation)  Recovery (OLAF Unit A.5) (Proceedings to recover funds - civil action)

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 OLAF’s Organisation chart

Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations P March 2005 Thank you for your attention OLAF - European Anti-fraud Office Rue Joseph II 30 B–1000 Brussels Phone :