Investigators from the European Public Prosecutor’s Office have carried out nine searches in Bucharest as part of a probe into suspected fraud worth about €7.8 million involving EU-funded projects intended to support social enterprises in disadvantaged areas.
The searches were conducted on 29 October at the homes of suspects and at company premises, according to the European Public Prosecutor’s Office (EPPO).
Six suspects were brought before judicial authorities to be formally informed of the charges, with judicial control measures to be imposed in some cases.
Police officers from the EPPO Support Structure in Romania – Cluj-Napoca took part alongside Romania’s Economic Crimes Investigation Directorate, Special Operations Directorate, and the Romanian Gendarmerie.
The investigation concerns four projects implemented between March 2019 and November 2022 under Romania’s 2014–2020 Human Capital programme, funded by the European Social Fund.
The projects were intended to help set up and develop social enterprises, including through training and funding for selected business plans.
Allegations over staged selection and false training claims
Suspects are alleged to have controlled several companies, associations and foundations involved in the projects, either directly or through close relatives, the EPPO said.
Investigators believe funding was channelled towards business plans submitted by people within the suspects’ circle of influence or to businesses in which they had a direct interest.
The selection process was allegedly staged to appear fair and transparent, while evaluations were carried out by people other than those named in supporting documents.
The suspects are also suspected of claiming funding for training courses that did not take place, using documents that falsely described how the courses were organised and delivered.
Investigators also allege purchases under the projects were manipulated using intermediaries and controlled companies to obtain money from grants, including purchases linked to Social Economic Structures.
The suspected scheme is estimated to have caused €7,832,000 in damage to the EU budget.
Precautionary measures have been imposed on suspects’ real estate assets valued at about €1,074,000.
All those concerned are presumed innocent until proven guilty in Romanian courts, the EPPO said.
