Questions and Answers
What percentage of offences investigated by the EPPO by the end of 2023 involved procurement expenditure fraud?
8.5%
Identify two common methods of procurement expenditure fraud related to public tendering procedures.
Submitting false declarations and collusive bidding.
What is often linked to procurement expenditure fraud, aside from the manipulation of tendering procedures?
Documentary forgery.
What was the primary focus of the EPPO's investigation regarding the National History Museum in Olomouc?
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In what sectors did the EPPO identify patterns of EU funding fraud during the reporting period?
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What is the estimated financial damage reported in relation to the project on the virtual museum in education?
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What specific misconduct were two defendants accused of in relation to the project contract award process?
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How did the Czech police aim to recover the financial damage incurred by the EU budget?
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What ongoing legal principle protects the suspects involved in the investigation of the virtual museum project?
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What ministry is associated with the funding of the ‘Virtual museum in education’ project?
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Study Notes
Procurement Expenditure Fraud Overview
- Approximately 8.5% of offences investigated by the EPPO (European Public Prosecutor's Office) relate to procurement expenditure fraud by the end of 2023.
- This fraud commonly involves manipulation of tendering procedures for public works, impacting projects like government building renovations and transport infrastructure.
Fraudulent Activities
- Predominant methods include submission of false, incorrect, or incomplete statements or documents.
- Documentary forgery often occurs alongside procurement fraud.
- Involvement of corrupt public officials is frequently identified in these cases.
Patterns of Fraud
- Patterns observed in various sectors such as agriculture, infrastructure, and education, as well as research, innovation, social affairs, and human resources.
- Covid-19 related fund fraud is currently under investigation.
- Common fraudulent practices include:
- False declarations during tendering procedures.
- Misrepresentation of qualifications or compliance with tender requirements.
- Submission of false documents to hide deficiencies in contracted work or materials.
- Collusive bidding or manipulation of tenders to favor specific operators.
- Splitting tenders to bypass European Commission evaluation processes.
Case Study: National History Museum, Olomouc
- In June 2023, three individuals were charged with procurement fraud linked to a public contract at the National History Museum in Olomouc, Czechia.
- Defendants included a public official from the museum and two former employees.
- The case involved the project 'Virtual Museum in Education’, funded by the EU's European Structural and Investment Funds.
- Estimated financial damage to EU and national budgets is about €560,000.
Investigation Findings
- Evidence indicated that at least 14 team members listed for the project did not perform assigned activities.
- Two defendants allegedly favoured a specific supplier during the public contract award process.
- One defendant also faced abuse of authority charges as an official.
Recovery Efforts
- To recoup financial damages, Czech police seized assets and real estate valued at €600,000 on behalf of the EPPO.
- Ongoing investigation, with defendants presumed innocent until proven guilty.
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Description
This quiz explores the issue of procurement expenditure fraud as investigated by the EPPO by the end of 2023. It covers how fraud manifests in tendering procedures for public works and examines the use of false or incomplete documents. Gain insights into the implications of such fraudulent activities in public procurement.
