EPPO is investigating a possible fraud of 7 million euros in 29 IT projects in Romania

The European Public Prosecutor's Office (EPPO) is investigating a possible fraud in public procurement related to 29 IT projects funded by European funds in Romania, with a total value of 7 million euros. Prosecutors suspect the existence of a network that may have manipulated the procedures for IT consulting services so that the contracts favor pre-selected cloud infrastructure providers, with the main beneficiaries being local municipalities and county councils.

In short EPPO coordinated 19 searches at the premises of individuals and companies as part of the investigation into the 29 IT projects funded by European funds. The projects received funding through the Recovery and Resilience Mechanism and the Operational Program for Administrative Capacity – Integrated Territorial Investment for the Danube Delta. Prosecutors suspect that the procurement procedures for IT consulting services were manipulated to favor certain pre-selected cloud infrastructure providers before the competition. Documents prepared by consulting companies for several projects show, according to investigators, extensive similarities in content, structure, and authorship, raising suspicions of systematic reuse of materials. The providers are also suspected of having submitted false, inaccurate, or incomplete documents during the procedures. The investigation is ongoing, and the individuals targeted benefit from the presumption of innocence.

EPPO from Bucharest coordinated 19 searches at the premises of individuals and companies as part of an investigation into how IT consulting contracts and technology solution provision were awarded in 29 projects funded by European money. The total value of the investigated projects is approximately 7 million euros.

The funding comes from two European sources. Some of the projects are supported by the Recovery and Resilience Mechanism, the instrument that finances the reforms and investments outlined in the national recovery plans, while others are funded through the Operational Program for Administrative Capacity, under the Integrated Territorial Investment for the Danube Delta.

The targeted procurements concern IT consulting services, software, and IT infrastructure. The beneficiaries of the projects are mainly local public authorities, including municipalities and county councils, which were to use the European funding for the development or modernization of digital solutions.

According to EPPO, there is substantial evidence that a network may have intervened in the procurement procedures for IT consulting services so that they lead to the selection of pre-established cloud infrastructure providers. The suspicion concerns how the procedures and documentation used for awarding contracts were prepared, not the existence or general utility of the investments in the digitization of administration.

One of the elements identified by investigators is the similarity of the documentation produced for different projects. Consulting companies are said to have provided materials with extensive similarities in terms of content, structure, and authorship, suggesting, according to EPPO, that the same materials may have been systematically reused in multiple procedures.

The similarity of the documents currently represents an element of the investigation and not a judicial conclusion regarding the existence of fraud. Prosecutors are trying to establish whether the documentation was prepared in such a way that the technical requirements or procurement conditions favored certain solutions and specific providers before the actual competition took place.

The investigation also examines the behavior of the suppliers participating in the procedures. EPPO suspects that false, inaccurate, or incomplete documents were submitted during some procurements, but the published information does not specify which documents are targeted, how many of the 29 projects have been identified in such situations, or which contracts may have been affected.

The value of 7 million euros represents the value of the projects that are the subject of the investigation. EPPO does not claim that the entire amount constitutes damage to the EU budget and does not indicate in the published information the value of the funds that may have been obtained illegally.

The difference is important at this stage of the case, as the investigation concerns suspicions regarding the procurement procedures related to a group of projects with a total value of 7 million euros. Establishing any financial loss and the responsibility of the individuals involved depends on the results of the investigation.

The searches were carried out with the support of the EPPO structure in Romania and several structures of the Romanian Police. The Special Operations Directorate and special operations services from Iași and Timișoara participated, along with economic crime investigation services from Ilfov, Brașov, Iași, Argeș, and Constanța, the Ilfov Criminal Investigation Service, and the Timișoara Organized Crime Fighting Brigade.

The European Anti-Fraud Office (OLAF) provided operational analysis to support the investigation. OLAF's involvement does not change the criminal nature of the investigation conducted by EPPO, as the two bodies have different roles in protecting the financial interests of the Union.

EPPO conducts investigations and prosecutions for crimes affecting the EU budget in participating states, while OLAF conducts administrative investigations and can provide relevant information or analyses for criminal investigations.

The operation in Romania is in the investigation phase. EPPO has not announced indictments, convictions, or arrests in the published information about the searches, nor does it identify the individuals, companies, or local authorities involved.

The 29 projects must therefore be treated as projects at the center of an investigation, without implying that all procedures or all beneficiaries are involved in illegal acts. The individuals targeted are presumed innocent until a competent court in Romania establishes otherwise.

The Recovery and Resilience Mechanism finances investments and reforms through the national plans of member states, and the digitization of public administration is one of the areas in which Romania has used European funds. The Operational Program for Administrative Capacity has also funded projects aimed at strengthening the capacity of public institutions, including under the Integrated Territorial Investment for the Danube Delta.

The investigation announced by EPPO concerns how the procurements for 29 such projects were organized and the alleged favoritism of certain cloud infrastructure providers. The available information does not allow for the establishment of a damage of 7 million euros nor the conclusion that all the investigated projects have been defrauded.

The investigation is coordinated by the EPPO office in Bucharest, with the support of Romanian law enforcement structures and OLAF, and any potential charges and individual responsibilities will depend on the evidence collected in the subsequent stages of the investigation.