EU Funds Fraud in Bulgaria: A Growing Concern

A recent report by the Center for the Study of Democracy has shed light on the alarming scale of EU funds fraud in Bulgaria. The report, “Bulgarian Organised Crime Threat Assessment 2020”, reveals that the abuses are comparable to those found in large markets for organized crime, such as human trafficking, drug trafficking, and illegal fuel trade.

The Scale of the Problem

According to the report, EU funds fraud in Bulgaria affects 5-15% of the funds received from beneficiaries of operational programmes. With a total budget of 23.2 billion levs (€11.7 billion) for the programming period of 2014-2020, the potential damages are estimated to be between 1.16 billion levs (€0.59 billion) and 3.48 billion levs (€1.78 billion).

Characteristics of EU Fund Fraud

The report identifies EU fund fraud as a special type of crime committed by white-collar criminals, rather than classic organized crime groups. The fraudsters are taking advantage of the EU’s funding programmes to enrich themselves, rather than using the funds for their intended purpose.

Common Scenarios of Abuse

The most common violations have been found in:

• Subsidies for agricultural crops from the State Fund ‘Agriculture’
• Construction of guest houses with EU money that were only used as private homes

These findings suggest that fraudsters are exploiting the EU’s funding programmes to line their own pockets, rather than supporting the intended projects and initiatives.

Conclusion

EU funds fraud in Bulgaria is a growing concern that requires immediate attention and action. The report highlights the need for increased transparency, accountability, and effective monitoring of EU-funded projects in Bulgaria. It is essential to address this issue to ensure that EU funds are used for their intended purpose and to prevent further corruption and abuse.