EU Funds Fraud in Bulgaria: A Growing Concern

A recent report by the Center for the Study of Democracy has revealed a staggering level of fraudulent activities in the finance industry in Bulgaria, with EU funds being used as a breeding ground for illegal activity.

The Scale of Fraud

According to the “Bulgarian Organised Crime Threat Assessment 2020”, up to 15% of EU funds received by beneficiaries of operational programmes in the country have been misused. This translates to potential damages estimated between 1.16 billion levs (€0.59 billion) and 3.48 billion levs (€1.78 billion).

Unique Type of Crime

The report highlights that EU fund fraud is a unique type of crime carried out by “white-collar” criminals rather than traditional organised crime groups. This type of crime is particularly insidious as it often goes undetected, with the majority of identified violations linked to funds from the State Fund ‘Agriculture’ in subsidies for agricultural crops and construction projects.

Examples of Fraudulent Activity

• Many guest houses built using EU money have been used as private homes.
• Subsidies for agricultural crops have been misused, with some farmers receiving payments for crops they did not actually grow.

Comparison to Other Markets for Organised Crime

The scale of fraudulent activities in Bulgaria’s EU funds fraud scene is comparable to that of major markets for organised crime such as: + Human trafficking + Drug trafficking + Illegal fuel trade

The Need for Increased Vigilance and Effective Measures

The report underscores the need for increased vigilance and effective measures to prevent and combat this type of criminal activity. It is essential that authorities and stakeholders work together to address this growing concern and ensure that EU funds are used as intended, benefiting both the country and its citizens.