REPORTING SUSPECTED FRAUD AND CORRUPTION Mr Leif HÖGNÄS, Fraud Prevention Officer DG Regional and Urban Policy

Legal basis for reporting irregularities and suspected fraud Cohesion Policy Funds (2007-2013) - Council Regulation (EC) No 1082/2006 (Article 70) - Commission Regulation (EC) No 1828/2006 as amended by Commission Regulation (EC) No 846/2009 Structural and Investment Funds (2014-2020) - Council and EP Regulation (EC) No 1303/2013 (Article 122) - Delegated and Implementing Acts under preparation

Article 122 of Council and EP Regulation (EC) No 1303/2013 Member States must notify to OLAF all irregularities which exceed EUR 10 000 in EU contribution (Article 122) NB: obligation to report suspected fraud and/or corruption by qualifying the irregularity in IMS

Definition of suspected fraud (Regulation 1828/2006) An irregularity which has been subject of a primary administrative or judicial finding giving rise to the initiation of proceedings at national level in order to establish the presence of intentional behaviour, in particular fraud as is referred to in […] the Convention […] on the protection of the European Communities’ financial interests […]

The Convention on the protection of the EU's financial interests – fraud definition - the use or presentation of false, incorrect or incomplete statements or documents, which has as its effect the misappropriation or wrongful retention of funds from the general budget of the European Communities or budgets managed by, or on behalf of, the European Communities, - non-disclosure of information in violation of a specific obligation, with the same effect, - the misapplication of such funds for purposes other than those for which they were originally granted

Corruption definition - corruption is defined as the abuse of (public) position for private gain - bribes and kickbacks refer to the giving (active bribery) or receiving (passive bribery) of a "thing of value" to influence an official act or a business decision - the "thing of value" need not be money, and often is not (the ambiguity remains and the perpetrator can more easily invent excuses if needed) - as a consequence, the act of bribery difficult to detect

Most common types of suspected fraud in 2012

60% of cases detected by control systems!

Number of irregularities reported as suspected fraud 2007-2013 (source OLAF)

Fraudulent amounts 2007-2013(source OLAF)

QUESTIONS?