1. e-mail: Marco.Pecoraro@ec.europa.eu
Who is speaking?
Marco Pecoraro
Case & Board Management Advisor A
Tel
11/29/2018

2. Contents What OLAF is What OLAF does Case of connected investigation
Case of joint investigation
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3. What is OLAF Birth and background : Its legal bases :
Operational since 1 June 1999
Successor to the Task Force for the Coordination of the Fight against Fraud (UCLAF) in the Commission Secretariat-General, set up in 1988
Its legal bases :
Articles 274 and 280 of the EC Treaty
Decision 1999/352/EC, ECSC, 28 April 1999
Parliament and Council Regulation (EC) No 1073/1999, 25 May 1999
Council Regulation (Euratom) No 1074/1999, 25 May 1999
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4. Its mission
Protect the European Union’s financial interests and, through them, the European taxpayer’s interests
Combat fraud and other illegal activities
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5. How the mission is accomplished
Internal administrative investigations
External administrative investigations
Coordination
Assistance
Other tasks
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6. OLAF’s Organisation chart
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7. OLAF’s structure Investigations & Operations I
Investigations & Operations II
Operational Support
General Affairs
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8. Horizontal structures
Support for candidates countries: Provides support to Acceding and Candidate countries to establish an effective AFCOS (Anti Fraud Co-ordinating Service).
Judicial and Legal Advice : the Unit consists of judicial advisers and similar experts in judicial proceedings and is responsible for providing judicial assistance and follow-up.
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9. The main areas in which investigators are active
Directorate A
Internal investigations, direct expenditure and external aid
Directorate B
Operations in the areas of structural actions, agriculture and customs (including cigarettes and VAT).
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10. Internal investigations
Intended:
to investigate serious facts linked to the performance of professional activities which may constitute a breach of obligations by officials and servants of the Communities
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11. Internal investigations
The legal framework
Parliament and Council Regulation (CE) No 1073/1999 of 25 May 1999 lays down the rules governing internal investigations into cases of fraud, corruption and all other illegal activities detrimental to Community interests.
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12. Internal investigations
The Office has
No judicial powers but conducts only administrative investigations
Right of immediate and unannounced access to any information held by the institutions, bodies, offices and agencies, and to their premises.
Right to inspect the accounts of the institutions, bodies, offices and agencies.
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13. Internal investigations
The Office can
Request oral information from members of the institutions and bodies, from managers of offices and agencies and from the staff of the institutions, bodies, offices and agencies.
Carry out on-the-spot inspections at the premises of economic operators concerned, in order to obtain access to information relating to possible irregularities which such operators might hold.
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14. External investigations
Sectors
Customs
Agriculture
Structural funds
Direct expenditure & External Aid
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15. Spontaneous assistance Cooperation with the Commission
Customs investigations: the powers (Regulation (EC) 515/97 of 13 March 1997)
Assistance on request
Spontaneous assistance
Cooperation with the Commission
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16. Investigation powers: Reg. 2185/96
WHEN:
for the detection of serious or transnational irregularities
where, for the detection of irregularities, the situation in a Member State requires on-the-spot checks and inspections to be strengthened in a particular case in order to improve the effectiveness of the protection of financial interests and to ensure an equivalent level of protection within the Community, or
at the request of the Member State concerned.
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17. Investigation powers: Reg. 2185/96
WHO: Commission officials
WHOM:on economic operators to whom Community administrative measures and penalties pursuant to Article 7 of Regulation (EC, Euratom) No 2988/95 may be applied, where there are reasons to think that irregularities have been committed.
Where strictly necessary in order to establish whether an irregularity exists, the Commission may carry out on‑the‑spot checks and inspections on other economic operators concerned;
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18. Investigation powers: Reg. 2185/96
HOW:
Previous verification that no other check is under way
Notification to Member State
Possible participation of Member State
MS rules of procedure applicable
Resistance
Report
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19. Agriculture: Investigation powers Article 37 of Regulation 1290/2005
To conduct on-the-spot inspections with a view to verifying in particular:
a. compliance of administrative practices with Community rules
b. the existence of the requisite supporting documents and their correlation with the operations financed by the EAGF or the EAFRD
c. the terms on which the operations financed by the EAGF or the EAFRD have been undertaken and checked.
Commission inspectors have access to the books and all other documents relating to expenditure financed by CAP
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20. Structural Actions: Investigation powers Art
Structural Actions: Investigation powers Art. 38 of Council Regulation (EC) No 1260/1999 of 21 June 1999
Commission officials or servants may, in accordance with arrangements agreed with the Member State in the framework of cooperation described in paragraph 3, carry out on-the-spot checks, including sample checks, on the operations financed by the Funds and on management and control systems with a minimum of one working day's notice.
The Commission shall give notice to the Member State concerned with a view to obtaining all the assistance necessary.
Officials or servants of the Member State concerned may take part in such checks.
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21. Direct expenditure: legal basis
Research: art. 18 and 20 of Regulation 2321/2002 refer to Regulation 2185/96
Environment: art. 9 of regulation 1655/2000
Education: Leonardo da Vinci Article 6 of the Commission decision adopting the provisions concerning the responsibilities of the Commission and the States etc..)
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22. External aid: legal basis
External aid: Cotonou agreement with ACP countries, Art. 8 Regulation 2666/2000 referring to Regulation 2185/96, as regards Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia
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23. External aid: legal basis
Pre-accession: Article 18 of Regulation 1085/2006 refers to Regulation 2185/96
Neighborhood policy: Article 20 of Regulation 1638/2006 refers to regulation 2185/96
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24. External aid Pre Accession
The old legal framework
Article 9(2) and Annex III of Regulation 1267/1999 (ISPA)
Article 11(3) and Annex of Regulation 1266/1999 (Phare/ISPA/Sapard)
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25. Direct expenditure: the eternal problem of finding a partner
The AFCOS: based on Article 280 of the Treaty and Chapter 28 of Accession negotiations (Financial control)
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26. PATTERNS Independent investigations Connected investigations
Joint investigations
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27. 1. Intelligence Audit by Deloitte & Touche Analysis of working papers
Serious suspicions of fraud (Judgment of the European Court of Justice of 10th July 2003 in Case C-11/00)
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28. 2. Assessment Establishment Board procedure Opening Work plan
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29. On-the spot check or interviews ? A trip through Germany The outcome
3. Investigation
On-the spot check or interviews ?
A trip through Germany
The outcome
The Interim report
Fraud and Irregularities tend to be complex, so it is important to have a clear picture of the reality of transactions and to identify relationships between persons or firms potentially involve in unlawful dealings. Only through the examination of the information a full picture can be achieve and also in order to evaluate implications.
This Directorate also distributes findings to MS.
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30. The report is sent to AFCOS and DG EAC
AFCOS Investigation
AFCOS Report
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31. 5. Judicial Authorities & Recovery
Prosecution
Recovery by EAC & Agency
Judicial & Financial follow-up
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32. Joint on-the-spot check with Romanian Judicial authorities
How the information was received and processed
The contacts with the Romanian prosecutors
The check
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33. Joint on-the-spot check with Romanian AFCOS
The initial information
The meeting with AFCOS
The check
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34. OLAF does not necessarily take the lead
The message
Mutual trust
Flexibility
OLAF does not necessarily take the lead
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35. What we have told What OLAF is What OLAF does
Case of connected investigation
Case of joint investigation
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36. Thank you for your attention
Marco Pecoraro
Case & Board Management Advisor A
Tel
11/29/2018