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

2. Legal basis for reporting irregularities and suspected fraud
Cohesion Policy Funds ( )
- 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 ( )
- Council and EP Regulation (EC) No 1303/2013 (Article 122)
- Delegated and Implementing Acts under preparation

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

4. 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 […]

5. 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

6. 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

7. Most common types of suspected fraud in 2012

8. 60% of cases detected by control systems!

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

10. Fraudulent amounts 2007-2013(source OLAF)

11. QUESTIONS?