Romanian and Bulgarian authorities have carried out 14 searches as part of an investigation into suspected fraud linked to two EU co-funded industrial projects worth about €20 million.
The searches took place on Wednesday in Romania and Bulgaria, with investigative measures also carried out in Austria and the UK, the European Public Prosecutor’s Office (EPPO) reported on Thursday.
Seven suspects are expected to be brought to the EPPO’s office in Bucharest to be informed of their status as suspects.
The case concerns two projects in Romania — one for manufacturing lithium-ion battery units and another for producing prefabricated metal modular structures — each worth about €10 million and co-funded by the EU.
Investigators suspect the projects’ beneficiaries submitted false or inaccurate documents to the Romanian managing authority between 2020 and 2024, including allegedly fake offers used to set budgets and documents said to misrepresent their own financial contribution and financial capacity.
It is also alleged that the same funds were repeatedly used for both projects to create the appearance of financial strength, with money moved into beneficiaries’ accounts only long enough to generate bank statements used as supporting evidence.
The EPPO said €7.5 million had already been paid out from the European Regional Development Fund (ERDF), an EU programme that supports development across European regions.
Allegations include role of public official
One of the projects is suspected of being unlawfully implemented with the help of a public official who allegedly certified false information in on-site visit reports, the EPPO said.
Those reports were used to extend the financing contract and the period allowed for implementation, and allegedly claimed required equipment had arrived in the country even though the main supplier had not purchased any equipment.
The beneficiaries are also suspected of setting up fraudulent financial arrangements — in Romania and internationally — to divert the funds for their own benefit.
The facts under investigation could amount to suspected fraud, forgery and money laundering, the EPPO said, adding that all those concerned are presumed innocent until proven guilty in Romanian courts.
