European Commission to Investigate 'Koldo' Contracts for Potential Misuse of EU Funds
Brussels will assess the legitimacy of contracts linked to alleged bribery and may suspend payments or recover misused funds.
The European Commission has announced an investigation into contracts associated with the 'Koldo' case, which reportedly involved the misuse of European Union (EU) funds.
The Commission has reiterated its zero-tolerance policy towards fraud within the EU budget and is expecting member states to uphold similar standards of accountability in managing the funds.
According to the Commission's Economic Affairs representative, Maciej Berestecki, the EU budget's safeguarding is a shared responsibility, particularly emphasizing that member states must conduct proper oversight of approximately three-quarters of the EU's budget.
The investigation comes as the Spanish government under Prime Minister Pedro Sánchez is under pressure to clarify the potential fraudulent use of EU funds in contracts awarded following alleged bribery, as highlighted in a report by the UCO (Central Operational Unit) involving Santos Cerdán.
The European Commission is poised to take appropriate actions should fraudulent activities be confirmed.
Such measures could include interrupting or suspending payments to member states, imposing financial corrections, executing administrative actions, and recovering already disbursed funds.
The Commission is prepared to collaborate with the European Anti-Fraud Office (OLAF) and the European Public Prosecutor's Office (EPPO) in cases of suspected fraud.
OLAF and EPPO are dedicated to protecting the financial interests of the EU and play active roles in preventing and detecting fraud early in the funding distribution process.
The Commission has asserted that it takes necessary actions whenever it becomes aware of potential irregularities affecting the EU budget.
Notably, the EPPO has indicated it is currently not planning to investigate the new allegations as they fall within the jurisdiction of the 'Koldo' case, which the Spanish Supreme Court has already ruled on, assigning the matter to national authorities.
This ruling came after the EPPO expressed interest in actual fraudulent activities linked to the procurement of masks in the Balearic Islands and Canary Islands, which involved EU funds totaling €17.8 million.
On July 26, 2024, the Supreme Court resolved a jurisdictional conflict in the 'Koldo' case raised by the Central Investigating Court, determining that the appropriate jurisdiction lay with national courts.
Following this decision, the EPPO forwarded its proceedings to Spain's High Court, affirming that these matters are under an existing procedure already established by the Supreme Court in favor of national authorities.
The Commission has reiterated its zero-tolerance policy towards fraud within the EU budget and is expecting member states to uphold similar standards of accountability in managing the funds.
According to the Commission's Economic Affairs representative, Maciej Berestecki, the EU budget's safeguarding is a shared responsibility, particularly emphasizing that member states must conduct proper oversight of approximately three-quarters of the EU's budget.
The investigation comes as the Spanish government under Prime Minister Pedro Sánchez is under pressure to clarify the potential fraudulent use of EU funds in contracts awarded following alleged bribery, as highlighted in a report by the UCO (Central Operational Unit) involving Santos Cerdán.
The European Commission is poised to take appropriate actions should fraudulent activities be confirmed.
Such measures could include interrupting or suspending payments to member states, imposing financial corrections, executing administrative actions, and recovering already disbursed funds.
The Commission is prepared to collaborate with the European Anti-Fraud Office (OLAF) and the European Public Prosecutor's Office (EPPO) in cases of suspected fraud.
OLAF and EPPO are dedicated to protecting the financial interests of the EU and play active roles in preventing and detecting fraud early in the funding distribution process.
The Commission has asserted that it takes necessary actions whenever it becomes aware of potential irregularities affecting the EU budget.
Notably, the EPPO has indicated it is currently not planning to investigate the new allegations as they fall within the jurisdiction of the 'Koldo' case, which the Spanish Supreme Court has already ruled on, assigning the matter to national authorities.
This ruling came after the EPPO expressed interest in actual fraudulent activities linked to the procurement of masks in the Balearic Islands and Canary Islands, which involved EU funds totaling €17.8 million.
On July 26, 2024, the Supreme Court resolved a jurisdictional conflict in the 'Koldo' case raised by the Central Investigating Court, determining that the appropriate jurisdiction lay with national courts.
Following this decision, the EPPO forwarded its proceedings to Spain's High Court, affirming that these matters are under an existing procedure already established by the Supreme Court in favor of national authorities.
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