Financial Crime World

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ESF Funds Fiasco: A Zero Result in Fighting Corruption in Croatia

Failure to Combat Corruption

A recent critical analysis has revealed that the European Social Fund (ESF) tender aimed at fighting corruption in Croatia has ended in failure, with not a single project being contracted despite receiving over 70 applications.

Lack of Transparency and Unclear Criteria

The tender was criticized for its lack of transparency and unclear criteria. The amount available to “optional partners” was reduced to just HRK 20,000, making it insufficient for any serious analytical or advocacy activity.

Unengaged Civil Society Organizations

Despite the initial intention to engage civil society organizations (CSOs) in developing anti-corruption capacities, the outcome has been a disaster. Only eight projects passed the minimum points threshold, and it is highly unlikely that contracts will be signed with these successful applicants.

Shifting Responsibility

The Intermediary Body Level 2 representative, National Foundation for Civil Society Development, has shifted responsibility to the quality evaluation process, claiming that it exposed the MCS bodies to unnecessary risks in cases of subsequent audit of projects financed through this call.

Experts’ Concerns

Experts argue that the failure is a significant setback in the fight against corruption in Croatia. The country’s ranking in combating corruption remains behind the European and OECD averages, despite a slight downward trend in the perception of capacities in combating corruption.

Need for Ambitious Reforms

The analysis highlights the need for designing and implementing ambitious anti-corruption reforms in the public sector and providing proper financial support from the National Plan of Recovery and Resilience. Investing more ambitiously in the fight against corruption, both from EU funds and national public sources, is crucial.

Conclusion: A Zero Outcome

Until then, the result is clear: a zero outcome in fighting corruption in Croatia using ESF funds.