Fighting fraud to save billions

2012-11-22 59

Fraud and corruption may be costing the EU €120 billion a year or even more. As part of their fact-finding before reforms of the EU's anti-fraud body, OLAF, Budgetary Control Committee MEPs visited Rotterdam and Antwerp, Europe's largest ports. The import duties levied here, in places like Rotterdam and Antwerp, account for 14 to 15% of the EU budget, which equals €20 to 25 billion. 80% of EU funds are spent by Member States, which have responsibility for fighting fraud, often in fields like dishonestly obtaining grants and VAT evasion. Set up in 1999, OLAF itself has less than 500 staff but it has conducted 3,500 investigations and recovered more than €1 billion. MEPs want to strengthen it. We've clarified the question of cooperation with Eurojust and Europol. We're trying to advance in international cooperation and improve the data flow back from the Member States in particular, as at the moment we don't know what OLAF does with the suspected cases when they are being reported to the Member States. It's like a black hole. The information just disappears. OLAF often has problems identifying the competent authorities in Member States and checking how a case has been followed up. MEPs want half-yearly progress reports and improved dialogue among the EU institutions. They also want enhanced collaboration with countries outside the EU. The Budgetary Control Committee will debate the report Wednesday. However effective customs officers at a port may be, fraud remains primarily a white-collar crime.

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