Hungary obliged to repay abused EU funds?!

The European Anti-Fraud Office (OLAF) would oblige Hungary to refund almost 4% of EU supports realized between 2014 and 2018. Last year, the agency carried out the highest number of investigations in Hungary; however – despite warnings – 20 proceedings have still not been started by the Hungarian authorities.

According to OLAF’s report – in 2018, the European Anti-Fraud Office carried out the highest number of investigations in Hungary. The body – which is responsible for detecting budget frauds – closed:

• 9 investigations in Hungary;
• 8-8 inspections in Greece and Poland;
• and 4 examinations in Romania, Bulgaria, the Czech Republic and Italy.

The organization – having the responsibility of protecting EU’s financial interests – identified irregularities at four-fifths of the Hungarian investigations and made recommendations to national authorities.

In comparison to other countries – in Greece, this proportion was three-quarters; in Poland, it was slightly more than one-third; while in case of other countries half of the cases revealed frauds related to EU funds.

According to the Hungarian news portal Index, the report also mentions an extreme Hungarian case, in which two partner companies recieved a financial support of EUR 12 million for the realization of two different projects. The same subcontractor was entrusted with their execution, who delegated the work to other four subcontractors. The purpose of creating the complicated network was to regain EUR 4.9 million which was planned to be implemented by the involvement of a company registered in another EU State. OLAF requested Hungarian authorities to initiate proceedings and recommended the European Commission to oblige Hungary to refund the damage of EUR 3.6 million.