Financial Crime World

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OLAF Launches Investigation into Alleged Abuse of EU Agricultural Funds in Slovakia

The European Union’s anti-fraud office, OLAF, has launched an investigation into alleged abuses of EU agricultural funds in Slovakia, according to a report by Politico.

Corruption Risks Remain

Despite efforts to combat corruption, Slovakia remains a high-risk country for corruption. According to Transparency International, the country has a long way to go before it can be considered fully transparent.

  • In its latest report on corruption in Slovakia, Transparency International highlighted the need for stronger anti-corruption laws and more effective enforcement.
  • The organization also called for greater transparency in public procurement processes and an end to the practice of using shell companies to hide ownership structures.

Companies Advised to Use Specialized Due Diligence Tool

Companies doing business in Slovakia are strongly advised to use a specialized public procurement due diligence tool to mitigate corruption risks associated with public procurement. The tool is designed to help companies assess the risk of corruption in their supply chains and identify potential red flags and prevent corrupt activities.

Legislation Lacks Teeth

Slovakia’s anti-corruption legislation is seen as lacking teeth by many experts. While there are laws in place to criminalize corruption, they are often poorly enforced or difficult to prosecute.

  • The country’s Conflict of Interest Law requires public officials to disclose their assets and income annually, but this law has been criticized for being ineffective.

Whistleblower Protection Needed

Slovakia’s Whistleblower Act provides for the protection of persons reporting on corruption, but Transparency International has indicated that the law has been poorly implemented and offers inadequate protection.

  • The killing of journalist Ján Kuciak in February 2018 highlighted the need for stronger whistleblower protection laws. Kuciak was investigating allegations of tax fraud involving a number of businessmen with connections to Slovakia’s ruling party when he was murdered.

Civil Society Remains Weak

Slovakia’s civil society is vibrant and active, but it remains weak and fragmented. Many organizations face challenges in terms of funding and resources, which can make it difficult for them to effectively advocate for anti-corruption reforms.

In conclusion, the OLAF investigation into alleged abuses of EU agricultural funds in Slovakia is a welcome move, but it is just one part of a broader effort to combat corruption in the country. More needs to be done to strengthen anti-corruption laws and enforcement, and to protect whistleblowers who come forward with information about corrupt activities.

Sources:

  • Politico
  • Transparency International
  • EUROPAM
  • World Economic Forum
  • Freedom House