Fraud in the use of the European Structural and Investment Funds (ESI) in Calabria, 2007-2013 and 2014-2020

Subject: Fraud in the use of the European Structural and Investment Funds (ESI) in Calabria, 2007-2013 and 2014-2020

By a clear margin, the Calabria Region holds an unfortunate record, topping the rankings for fraud against the interests of the European Union in the use of the European Structural and Investment Funds (ESI).

In the 2007-2013 programming period alone, there were several hundred cases of fraud, embezzlement, swindling and other irregularities in Calabria affecting funds earmarked for the common agricultural policy and regional cohesion policies.

In addition, many irregularities have continued to come to light in the 2014-2020 programming period.

In order to obtain a clear and comprehensive view of the impact of fraud on the use of EU funds and, consequently, to establish the necessary arrangements to prevent and/or limit potential cases of fraud in future, the Commission is asked to state:

1. the amount of losses due to fraud, embezzlement and irregularities recorded in the Calabria ROPs for 2007-2013 and 2014-2020 and the Calabria RDPs for 2007-2013 and 2014-2020;

2. what sums, having been unduly paid under the regional programmes for Calabria in 2007-2013 and 2014-2020, have already been recovered and/or subjected to the decertification procedure;

3. whether it considers that strengthening the tools available to OLAF, such as carrying out on-the- spot checks, is a corrective measure whose use can no longer be delayed, especially in regions such as Calabria, which are struggling to find effective remedies for the problems described above.

Answer given by Ms Ferreira on behalf of the European Commission

(7 February 2020)

1. As a general rule in case of frauds and irregularities in EU spending programs no payments are processed, which prevents direct losses for the EU.

2. At closure of each programme, all undue amounts detected by Commission and national auditors, OLAF and the Court of auditors are deducted from the final payment. The programme authorities are responsible for withdrawing any undue amount in their payment applications submitted to the Commission.

Concerning the European Regional Development Fund use in Calabria for 2007-13, around EUR 72 million concerning mainly unfinished projects have been corrected on request of the Commission. For 2014-20, national authorities are checking and correcting expenditure incurred by beneficiaries. Final figures not yet known.

Concerning rural development programs, recovery from final beneficiaries are enacted by the competent Paying Agency under supervision of the Directorate-General for Agriculture and are declared to the Commission in the quarterly declaration of expenditure. For 2007-13, after closure, EUR 5.6 million related to irregularities was recovered from Calabria. For 2014-20, the recovered amounts from irregularities declared stand at EUR 3.2 million.

3. The Commission agrees on the importance of enhancing OLAF’s investigative tools. Hence, the Commission adopted in May 2018 a proposal, currently under discussion between the Council, the Parliament and the Commission, to amend Regulation 883/2013 on investigations conducted by OLAF. (1) The proposed amendments, if adopted, would strengthen the tools OLAF has at its disposal, such as the conduct of on-the-spot checks, cooperation with Member States, access to bank account information and admissibility of evidence.

⋅1∙ Commission Proposal for a regulation of the European Parliament and of the Council amending Regulation (EU, Euratom) No 883/2013 concerning investigations

conducted by the European Anti-Fraud Office (OLAF), COM(2018)0338.