Financial Crime World

European Public Prosecutor’s Office Uncovers €10 Million Procurement Fraud in Romania and Spain

(Luxembourg, 7 June 2024)

The European Public Prosecutor’s Office (EPPO) announced the discovery of a significant procurement fraud involving EU funds for the modernization of water infrastructure and the improvement of energy efficiency in Romania and Spain.

Investigation Details

  • European Public Prosecutor’s Office (EPPO) in Romania: collaborated with Bucharest and Madrid law enforcement agencies
  • Six searches: conducted in Hunedoara County, Romania (at a hospital and a public company)
  • One search: at EPPO headquarters in Madrid, Spain

Focus of the Investigation

The investigation centers around two projects:

  1. Modernization of water infrastructure in Hunedoara County
  2. Improvement of energy efficiency at a hospital

Both projects were financed by the:

  • Cohesion Fund’s Large Infrastructure Operational Programme (for the modernization project)
  • Regional Development Fund’s Regional Operational Programme (for the energy efficiency project)

Preliminary Findings

  • A group of companies involved in the public procurement procedures fabricated documents and declarations to secure contracts
  • Spanish company, allegedly essential for meeting technical requirements, provides no evidence of involvement

Individuals and Companies under Investigation

  • Three individuals
  • Two companies

Damage and Seized Assets

  • Initial damage assessment €10 million, pending final evaluation
  • Ordered seizure of assets worth up to €10 million

Cooperating Institutions

Support from Romanian and Spanish institutions:

In Romania:

  • Support Structure of European Delegated Prosecutors
  • Hunedoara County Police Inspectorate - Economic Crime Investigation Service
  • General Anti-Corruption Directorate – Hunedoara County Anticorruption Service
  • General Inspectorate of the Romanian Police – Information Analysis Unit
  • Timisoara Mobile Gendarme Group

In Spain:

  • Guardia Civil
  • Criminal Police Technical Unit
  • UTPJ Cadiz
  • Anti-Money Laundering Team
  • Team PJ Barbate

Role of the European Public Prosecutor’s Office

The European Public Prosecutor’s Office is an independent public prosecution office responsible for:

  • Investigating
  • Prosecuting
  • Bringing to judgment

Crimes against the financial interests of the European Union.