Europaudvalget 2015
KOM (2015) 0386
Offentligt
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EUROPEAN
COMMISSION
Brussels, 31.7.2015
SWD(2015) 151 final
COMMISSION STAFF WORKING DOCUMENT
Annual overview with information on the results of the Hercule III Programme in 2014
Accompanying the document
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLEMENT AND
THE COUNCIL
Protection of the European Union's financial interests - Fight against Fraud
Annual Report 2014
{COM(2015) 386 final}
{SWD(2015) 152 final}
{SWD(2015) 153 final}
{SWD(2015) 154 final}
{SWD(2015) 155 final}
{SWD(2015) 156 final}
EN
EN
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1.
Introduction .................................................................................................................................... 3
1.1
1.2
1.3
2.
Hercule III Programme ............................................................................................ 3
Hercule III: eligible actions, beneficiaries and budget ............................................ 3
Purpose and scope of this overview ......................................................................... 4
Budget implementation by type of financial intervention ....................................... 5
Budget implementation by type of eligible action ................................................... 7
Technical assistance grants
................................................................................. 7
IT support: Databases, IT tools and analyses of samples from tobacco seizures
8
Conferences, seminars and digital forensic training
........................................... 9
Legal training and studies
.................................................................................. 10
Budget implementation in 2014...................................................................................................... 5
2.1
2.2
2.2.1
2.2.2
2.2.3
2.2.4
3.
Achievements 2014 ...................................................................................................................... 11
3.1
Improving the prevention and investigation of fraud and other illegal activities
beyond current levels by enhancing transnational and multi-disciplinary cooperation ....... 11
3.2
Increasing the protection of the financial interests of the Union against fraud by
facilitating the exchange of information, experiences and best practices, including staff
exchanges ............................................................................................................................. 12
3.3
Strengthening the fight against fraud and other illegal activities by providing
technical and operational support to national investigation, and in particular customs and
law enforcement, authorities ................................................................................................ 13
3.4
Limiting the currently known exposure of the Union’s financial interests to fraud,
corruption and other illegal activities with a view to reducing the development of an illegal
economy in key risk areas such as organised fraud, including cigarette smuggling and
counterfeiting ....................................................................................................................... 16
3.5
Enhancing the degree of development of the specific legal and judicial protection
of the financial interests of the Union against fraud by promoting comparative law analysis
17
4.
Communication ............................................................................................................................ 18
4.1
4.2
4.3
5.
6.
Informing potential applicants ............................................................................... 18
Dissemination of results ......................................................................................... 18
Publicity ................................................................................................................. 19
Feedback from participants........................................................................................................... 19
Conclusions and way forward ...................................................................................................... 19
Annex 1: Grants and contracts awarded and finalised in 2014 ............................................................. 20
2
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1.
Introduction
1.1
Hercule III Programme
The Hercule III Programme is the successor of the Hercule II (2007-2013) Programme and
the first Hercule Programme (2004-2006). The aim of the Hercule III Programme (hereinafter
referred to as ‘the Programme’) is to protect the financial interests of the European Union
(EU) by fighting fraud, corruption and other irregularities. The Programme provides support
to national and regional administrations in Member States which ‘promote
the strengthening
of action at Union level to protect the financial interests of the Union’.
Grants are awarded to
the competent authorities in the Member States to strengthen their operational capacity to
investigate activities detrimental to the Union’s financial interests. The financial support goes
towards the purchase of technical equipment, such as x-rays scanners, software and hardware
for digital forensic examinations, as well as sniffer dogs. To a lesser extent, the Programme
also serves to finance training activities and conferences for Member States’ authorities.
The Programme’s legal basis
1
requires the Commission to adopt an annual work programme
for the implementation of the Programme and to submit a report
2
on the main results and
achievements every year to the European Parliament and to the Council.
This is the first annual overview of the achievements and results following the
implementation of the first annual work programme
3
in 2014.
The Programme is the only instrument
specifically
dedicated to protecting the Union’s
financial interests and is administered by the European Anti-Fraud Office (OLAF), which, in
the field of anti-fraud policy, is a Directorate-General of the European Commission.
The general objective of the Programme is ‘to
protect the financial interests of the Union thus
enhancing the competitiveness of the Union’s economy and ensuring the protection of the
taxpayers’ money’
4
,
whereas its specific objective is ‘to
prevent and combat fraud, corruption
and any other illegal activities affecting the financial interests of the Union’
5
. The five
operational objectives
6
of the Programme are addressed in section 3 of this report, together
with an overview of the main results of the actions carried out under the Programme and how
they contributed to achieving the operational objectives.
1.2
Hercule III: eligible actions, beneficiaries and budget
‘Technical assistance’
8
: this relates to support aimed at providing specific
knowledge, equipment and information technology (IT) tools to national
There are three types of eligible actions
7
supported by the Programme:
(1)
1
2
3
4
5
6
7
8
Regulation (EU) No 250/2014 of the European Parliament and of the Council of 26 February 2014, OJ L 84 of 20 March 2014.
The Regulation entered into force on 21 March 2014 and was applicable from 1 January 2014 onwards. Article 13 of this
Regulation (Monitoring and evaluation) requires the Commission to ‘provide
the European Parliament and the Council, on an
annual basis, with information on the implementation of the Programme, including on the achievement of the objectives of the
Programme and the results’.
Article 13 of Regulation 250/2014.
The first annual work programme was adopted by Financing Decision C(2014)3391 final of 26 May 2014.
Article 3 of Regulation 250/2014.
Article 4 of Regulation 250/2014.
Article 5 of Regulation 250/2014.
Article 8 of Regulation 250/2014.
It is important to underline that ‘Technical assistance’ as defined in Regulation 250/2014 differs substantially from the term used
in Article 121(7) of Commission Delegated Regulation (EU) 1268/2012 of 29 October on the Rules of Application (RAP) of
Regulation 966/2012 (Financial Regulation - FR), which defines technical assistance as ‘support
and capacity-building activities
necessary for the implementation of a programme or an action, in particular preparatory, management, monitoring, evaluation,
audit and control activities’.
3
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authorities as well as providing specific databases and IT tools facilitating
data access and analysis;
(2)
‘Training’, which relates to support for training activities, conferences and
legal studies focused on protection of the Union’s financial interests. This
includes legal training and studies;
‘Any other action’ necessary for attaining the general, specific or
operational objectives of the Programme.
(3)
The Programme’s beneficiaries
9
are:
National or regional administrations of a Member State;
Research and educational institutes and non-profit-making entities in the Member
States.
They must ‘promote
the strengthening of action at Union level to protect the financial
interests of the Union’.
Costs incurred in enabling persons from third countries to participate
in an event organised with funding from the Programme, such as conferences, seminars or
training, can be considered as eligible costs under certain conditions.
The budget for implementing the Programme in 2014 amounted to EUR 13.7 million in
commitment appropriations and EUR 11 million in payment appropriations, and was financed
under item 24.0201 of the European Union budget for 2014
10
.
1.3
Purpose and scope of this overview
The annual overview is intended to fulfil the requirement under Article 13(1) of Regulation
(EU) No 250/2014 to ‘provide
the European Parliament and the Council, on an annual basis,
with information on the implementation of the Programme, including on the achievement of
the objectives of the Programme and the results’.
To that end, this overview covers
information on actions for which financial commitments were made under the 2014 work
programme (section 2) as well as the results of actions that were finalised in 2014 but
committed under the Hercule II Programme in previous years (section 3).
9
10
Article 7 of Regulation 250/2014 determines the geographical scope of the Programme. The participation of national and regional
administrations from third countries (including EEA countries and Switzerland) in the Programme is subject to an agreement
between the respective third countries and the Union on the former’s participation in EU programmes. For the time being, no such
agreement is in force.
OJ L 51 of 20 February 2014, p. 989 and p. 991-992. The payment appropriations were not sufficient to cover the commitments
made in 2014 and in earlier years under the Hercule II Programme. This led the Budget Authority to make additional payment
appropriations of EUR 942 750 available in December 2014.
4
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2.
Budget implementation in 2014
The budget for implementing the Programme amounted to EUR 13.7 million in commitment
appropriations. Table 1 gives an overview of the available
budget
and the
commitments
made in 2014.
Table 1: Available budget and commitments made in 2014
TYPES OF ELIGIBLE ACTIONS 2014
TECHNICAL ASSISTANCE
Technical assistance grants
IT support
IT Databases
IT Data analysis (JRC)
Tobacco analysis
ANTI-FRAUD TRAINING
Conferences, seminars and
forensics training
Training
Conferences
Forensic training
Legal training and studies
Grants
Procurement
Procurement
Procurement
BUDGET
10 250 000
7 450 000
2 400 000
200 000
200 000
3 400 000
digital
Grants
Procurement
Procurement
Grants
Procurement
OTHER ACTIONS
TOTAL 2014
900 000
1 100 000
800 000
550 000
50 000
27 700
13 677 700
621 747
1 184 132
734 640
495 668
0
0
13 676 023
69.08
107.65
91.83
90.12
0.00
0.00
99.99
COMMIT
11
10 639 836
8 683 356
1 756 480
200 000
0
3 036 187
%
104.00
116.56
73.19
100.00
0.00
89.30
The information in the table above only relates to commitments.
Payments
under the grant
agreements and most of the contracts committed in 2014 cannot be reported on as most of the
payments were only made in 2015.
2.1
Budget implementation by type of financial intervention
The types of financial intervention
12
for implementing the Programme were
public
procurement
(contracts) and
grants.
Contracts were concluded between the Commission and
one or more economic operators on the basis of Title V of the Financial Regulation (FR)
13
for
the purchase of goods or services, such as access to databases or the development of IT
systems. The Commission has availed itself of the possibility to conclude framework
contracts (FWC)
14
, the purpose of which is to establish the terms governing specific contracts
to be awarded during a given period. In 2014, several specific contracts were concluded under
existing FWCs amounting overall to EUR 4 750 000 (as shown in Graph 1) for the purchase
of IT support (including access to databases) and the organisation of conferences and training
events.
11
12
13
14
Commitments cover the total costs in 2014 of legal obligations (contracts, grant agreements/decisions) entered into for operations
extending over more than one year (Article 7, FR). The total amount for the commitments cannot exceed the allocated budget.
Article 10 of Regulation 250/2014.
Regulation 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the
general budget of the Union (Financial Regulation — FR), OJ L 298 of 26 October 2012. Title V (Articles 101-120) determines
the rules on public procurement, whereas Title VI (Articles 121-137) contains the rules in relation to the award of grants.
Article 101(2) FR.
5
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Grants are direct contributions to finance an action intended to help achieve an EU policy
objective. Grants are awarded following a call for proposals, inviting applicants to submit a
proposal for an action that, in the case of the Hercule Programme, helps in achieving the
Programme’s objectives. The beneficiary of a grant becomes the legal and economic owner of
the goods or services that are purchased with the help of the grant. Under the Programme,
grants covering up to 80 % of the eligible costs
15
can be awarded. In exceptional and duly
justified cases
16
, the Commission can award grants covering up to 90 % of the eligible costs.
In 2014, the overall budget for grants was EUR 8 900 000. The Commission launched three
calls for proposals in June 2014 (Technical assistance, Legal training and Training &
Conferences), which eventually led to the award of 44 grants in 2014 and 2015.
The graphs below give a breakdown of the budget (planned) and achieved commitments in
2014 by type of financial intervention and by type of eligible action.
Graph 1: Hercule III budget and commitments in 2014 by type of financial intervention
Budget 2014
4.750.000
35%
Grants
Procurement
8.927.700
65%
3,875,252
28%
Commitments 2014
9,800,771
72%
Grants
Procurement
Graph 2: Hercule III budget and commitments in 2014 per type of eligible action
2.800.000
20%
Budget 2014
600.000
4%
Technical
Assistance
IT Support
Anti-fraud
Training
Legal Training
2.540.519
19%
Commitments 2014
495.668
4%
Technical
Assistance
IT Support
Anti-fraud
Training
Legal Training
2.800.000
21%
7.477.700
55%
1.956.480
14%
8.683.356
63%
Information on the calls was published in the Official Journal
17
, on the Commission’s website
and it was also transmitted to the members of the Advisory Committee for the Coordination of
Fraud Prevention (COCOLAF). The grants were awarded after an Evaluation Committee had
examined the submitted proposals (‘applications’) on the basis of four sets of criteria
18
. These
criteria had been listed in the calls to ensure that the Programme is implemented in
accordance with the Financial Regulation
19
and its Rules of Application
20
and to ensure that
15
16
17
18
19
Article 10(4) of Regulation 250/2014.
The annual work programme contains the criteria as required under Article 11 of Regulation 250/2014 for the definition of
exceptional and duly justified cases. Applicants were given the possibility to indicate whether or not their applications should be
considered for the maximum co-financing percentage of 90 %. The Commission decided not to apply the 90 % funding rule as
none of the applications managed to demonstrate in a convincing manner their compliance with the criteria in the annual work
programme. In addition, the aggregated requests for funding substantially exceeded the available budget and eventually made it
impossible for the Commission to consider this option.
OJ C227 of 17 July 2014, p. 11.
Eligibility, exclusion, selection and award criteria.
As required under Article 10(1) of Regulation 250/2014.
6
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the ‘best value for money’ is obtained for the actions to be funded under the grants. The
award criteria were as follows:
Added value of the application for protecting the financial interests of the European
Union;
Conformity with the operational objectives of the Programme;
Quality;
Value for money.
The graph below gives an overview of the number and amounts of commitments made for
grants in 2014 by Member State.
Graph 3: Hercule III commitments and number of grants in 2014 by Member State
2.500.000,00
3
2.000.000,00
3
1.500.000,00
4
1.000.000,00
1
1 5
500.000,00
2
5
5
1
1 2
1
2 1
1 1 1 1
0,00
LT BG PL PT MT FR ES IT RO NL SE LV EL DE HR SK HU CZ BE DK EE IE CY LU AT SI FI UK
2.2
2.2.1
Budget implementation by type of eligible action
Technical assistance grants
The budget for technical assistance grants amounted to EUR 7 450 000 and was available for
grants to support national and regional authorities seeking to purchase, implement and install
special equipment and tools needed in the fight against fraud affecting the financial interests
of the Union. This support included tools and devices for combating cigarette smuggling and
counterfeiting. Examples of actions for which funding could be requested were
21
:
Purchase and maintenance of investigational tools and methods, including
specialised training in their use;
Purchase and maintenance of devices and animals to carry out inspections of
containers, trucks, railway wagons and vehicles at the EU’s external borders to
detect smuggled and counterfeited goods;
20
21
Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation 966/2012,
OJ L 362 of 31 December 2012.
See section 6 of the specifications of the call:
http://ec.europa.eu/anti_fraud/policy/hercule-iii/index_en.htm.
7
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Purchase, maintenance and interconnection of systems for the recognition of
vehicle number plates (Automated Number Plate Recognition Systems –
ANPRS) or container codes. Specialised training needed to operate these systems
is included;
Purchase of services to support Member States’ capacity to store and destroy
seized cigarettes.
Following its June 2014 call for proposals, the Commission received, by the deadline of 1
September 2014, 83 applications from 26 different Member States requesting a total amount
of EUR 43 million, which was six times higher than the available budget of EUR 7.45
million. Once the submitted applications had been evaluated, 21 grants for an overall amount
of EUR 8.7 million were awarded
22
. The average co-financing percentage for the awarded
grants amounted to 80 % of the eligible costs of the action. The grants were awarded for the
purchase of investigational equipment (including forensic equipment: 10 grants); the purchase
of x-rays scanners (5 grants); and the purchase and training of sniffer dogs (2 grants).
Automated Number Plate Recognition Systems (ANPRS) accounted for 3 grants and one
grant was awarded for the destruction of seizures. Table 1 in Annex 1 gives an overview of
the grants and co-financing rate, the beneficiaries and the supported action.
2.2.2
IT support: Databases, IT tools and analyses of samples from tobacco seizures
Databases
The Programme provides funds to procure databases or subscription to databases for law
enforcement authorities in the Member States in order to support their operations and
investigations. The Commission procures and manages the access to databases, thus enabling
substantial economies of scale. OLAF staff also use these databases for their investigations. In
2014, the databases were purchased by making use of specific contracts under framework
contracts concluded in 2011
23
, 2012
24
and 2013
25
. Table 3 in Annex I gives an overview of
the contracts awarded in 2014.
Development of specific IT tools for data analyses
Two projects for the analysis of ‘big data’ that were initiated under the Hercule II Programme
were continued in 2014. The Automated Monitoring Tool (AMT) and Container Traffic
(CONTRAFFIC) projects are being carried out by the Joint Research Centre (JRC) under
administrative arrangements. These two projects provide the appropriate tools for supporting
investigations that need data and analyses on container movements (current and past),
providing more realistic and effective scenarios for joint customs operations.
The AMT generates automated alerts for outliers in trade data and can be used to monitor
trade flows relevant to intelligence analyses and targeted controls by Member States’ customs
authorities. The AMT has improved authorities’ ability to detect the undervaluation of
imported goods and made them more efficient, freeing up human resources and time for other
investigation work. However, the AMT is only expected to reach its full potential with
improvements that aim at reducing the number of ‘false positive’ alerts. These improvements
have only started under the Hercule III Programme and will be continued in 2015-2016.
22
23
24
25
This amount was higher than the earmarked budget in the annual work programme. At the end of 2014, appropriations that were
not committed for other types of eligible actions were transferred to technical assistance.
OLAF/2011/C5/027 for ship movements.
OLAF/2012/D5/022 for manifest data.
OLAF/2013/D5/020 for trade data, OLAF/2013/D5/021 and OLAF/2013/D5/022 for company data.
8
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The CONTRAFFIC Single Administrative Document (CONTRAFFIC-SAD) analysis system
is a pilot project run by the Commission (OLAF and JRC) in collaboration with customs
authorities in ten Member States. The aim of the project is to evaluate the feasibility and to
demonstrate the effectiveness of using Container Status Messages data to identify imports of
containerised goods where the origin country is wrongly declared. The project is based on the
CONTRAFFIC technology developed at the JRC in collaboration with OLAF over the last
10 years. The administrative arrangement for the CONTRAFFIC project was renewed in 2014
for an amount of EUR 200 000 and runs until the end of July 2015. Section 3 contains
examples of the results obtained in 2014 with the AMT and CONTRAFFIC tools.
Tobacco analyses
The work programme provided for financial support to enable Member States’ customs
authorities to carry out an additional analysis of samples taken from cigarettes and tobacco
seizures. Under the Hercule II Programme, these analyses were carried out by a laboratory in
Scotland. This contract expired in July 2014. The budget earmarked in this year for this
activity was therefore added to the budget for technical assistance grants.
2.2.3
Conferences, seminars and digital forensic training
Conferences organised under grants
The training activities supported under the Programme aim at providing grants to
beneficiaries in the Member States for the organisation of targeted specialised and risk
analysis training workshops, seminars and conferences. This training is also intended to create
networks between Member States, accession countries, candidate countries, other third
countries and international public organisations in order to facilitate exchange of information,
experience and best practices. The key outcomes were:
Improved skills and competences of law enforcement officials involved in fraud
investigations;
Increased awareness of fraud risk indicators (‘red flags’) and EU anti-fraud policy;
More effective dissemination of specialised methodologies, tools and techniques to
fight and prevent fraud, corruption and irregularities perpetrated against the Union's
financial interests.
The Commission received 29 applications from 14 Member States by the deadline of 15
September 2014. The aggregated budget of the 29 applications amounted to EUR 3.5 million,
and the Commission was asked to contribute EUR 2.8 million, whereas only EUR 0.9 was
available. Following evaluation of the applications, the Commission eventually awarded 12
grants for an amount of EUR 621 747, with 17 applications being rejected. Table 4 in Annex
1 gives an overview of the grants and co-financing rate, the beneficiaries and the supported
action.
Conferences under procurement
The Programme also gives financial support for the organisation by the Commission (OLAF)
of high-level conferences and ad-hoc training activities focused on protection of the Union’s
financial interests. The Commission used the services of two firms
26
specialised in organising
events under framework service contracts for the organisation of its conferences. The overall
budget for conferences under procurement was EUR 1.1 million.
26
MCI Benelux S.A., and AMEX, both located in Brussels.
9
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Table 5 in Annex 1 provides an overview of the nine events that were procured by the
Commission in 2014. The conferences under procurement included the organisation of the
Task Group Cigarettes, the annual conference of fraud prosecutors, training seminars for
AFCOS members and debriefings of joint customs operations (JCOs).
Training under procurement: Computer forensics training
The Commission signed a specific contract for the organisation of nine digital forensic
training courses during a two-week training session in October 2014
27
. The training was
organised in Zagreb by a service provider
28
under a framework service contract concluded in
2013. The target audience consisted of staff employed by national or regional administrations
of the Member States and third countries which promote stronger action to protect the Union's
financial interests. The training courses were given by 44 trainers and were attended by 275
participants.
The training session consisted of one basic and eight specialised and advanced courses in
digital forensics designed to enable the participants to improve their skills and competences in
tools and software used to retrieve and secure data from computers, tablets, mobile phones or
any other digital devices. The courses were developed by an international organisation of
computer forensic experts
29
, which also provided the trainers and ensured the quality control.
At the end of the training sessions, the participants had to pass an exam to assess the newly
acquired skills and competences. Most participants succeeded in passing these tests. The
training sessions also gave the participants an opportunity to network and to exchange
information and best practices in relation to computer forensic examinations.
Overall, the 2014 training costs amounted to EUR 734 640, which included the training itself,
accommodation as well as the travel costs for the participants.
2.2.4
Legal training and studies
Legal training and studies is a part of the training that aims at enhancing the degree of
development of specific legal and judicial protection of the Union’s financial interests by
promoting comparative law analyses. The following actions are supported:
Development of high-profile research activities, including studies in comparative law;
Improvement of cooperation between practitioners and academics (e.g. through
conferences, seminars and workshops), including organisation of the annual meeting
of the Presidents of the Associations for European Criminal Law and for the
Protection of the Union’s financial interests;
Raising awareness among the judiciary and other branches of the legal profession
about the protection of the financial interests of the European Union, including the
publication of relevant scientific knowledge.
The Commission received 16 applications from eight Member States by the deadline in
September 2014. The aggregated budget of the 16 actions amounted to EUR 1.2 million and
the Commission was asked to contribute an amount of EUR 964 303 (79.2 % co-funding),
whereas EUR 550 000 was available. The Commission decided to award grants to eight
applicants for an overall amount of EUR 495 668, with an average co-financing rate of 80 %.
27
28
29
This was the autumn session of the digital forensics training. In June 2014, the spring session took place in Zagreb as well. The
latter session was committed under the 2013 budget of the Hercule II Programme.
Insig2 Ltd, Zagreb, Croatia.
International Association of Computer Investigative Specialists (IACIS), a US based association.
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The grants were awarded among other things for the organisation of conferences on the
European Public Prosecutor, criminal and administrative investigation in the VAT area, as
well as the publication of a periodical on the protection of the Union’s financial interests.
Table 7 in Annex I gives an overview of the grants awarded in 2014.
3.
Achievements 2014
The previous section looked at the grants and contracts awarded under the Programme in
2014. This section provides an overview of the main results achieved by the Programme’s
beneficiaries using the equipment and services purchased with grant aid. As a condition for
the final payment, beneficiaries have to submit a final technical report giving a summary of
the results in terms of, for example, the number and value of seizures made with the newly
purchased equipment, the number of persons under investigation or arrested and an estimate
of the (prevented) losses to the national and the Union’s budget. For conferences, seminars
and training events, the beneficiaries have to indicate the results of a mandatory survey
amongst the participants to measure the relevance and quality of the event. The final report
must clearly indicate how the action contributed to the achievement of the Programme’s
objectives. The report must also address any problems that occurred during the
implementation of the action, such as delays in procurement procedures. For a technical
assistance grant, the beneficiary has to submit a final implementation report one year after the
formal closing date of the grant agreement.
This section looks mainly at the results as reported in the final reports on grants that were
awarded before 2014, but they will be discussed in the light of the new Programme’s
operational objectives
30
.
3.1 Improving the prevention and investigation of fraud and other illegal
activities beyond current levels by enhancing transnational and multi-
disciplinary cooperation
31
All of the activities undertaken in this area contributed to achieving this operational objective.
The specialised anti-fraud training ensured a far-reaching anti-fraud and anti-corruption
campaign across the EU and allowed wide dissemination of anti-fraud measures protecting
the EU’s financial interests. The training seminars covered a wide range of disciplines, from
fraud prevention and detection to combating the counterfeiting of cigarettes and tobacco, and
focused on laws and practices to prevent fraud with EU funds.
The main results of these actions are:
better understanding of modi operandi and knowledge obtained in the field of
preventing and combating fraud detrimental to the EU’s financial interests;
specific skills in prevention, detection and investigation in the fight against fraud;
input for further development and improvement of the activities of national
organisations, including legislative work;
dissemination of information about the latest developments, methods, techniques in
the field of the fight against fraud and corruption; and
30
31
The final payments were made from payment appropriations made available under the new Programme.
This operational objective corresponds to the requirements set out in Article 1(2)(a) of Decision 804/2004/EC of 21 April 2004
establishing a Community action programme to promote activities in the field of the protection of the Community’s financial
interests, OJ L 143 of 30 April 2004, as amended by Decision 878/2007/EC of 23 July 2007, OJ L 193 of 25 July 2007.
11
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information obtained through networks established between organisations.
Two examples of conferences and their results finalised in 2014 are given below. A
comprehensive overview of the finalised training events is given in Annex I, Table 6
(training) and Table 8 (legal training):
Transparency International Budapest
organised a two-day conference in Budapest in
February on ‘Safeguarding
EU funds against fraud & corruption through the civil
control mechanism of Integrity Pacts’.
The conference was attended by 41 participants
from 12 Member States and it aimed at exploring the possibilities for safeguarding the
Union’s financial interests by developing a corruption-prevention tool for use in public
procurement and contracting. One of the results of this conference was the publication of a
handbook and a compendium providing a toolbox for authorities to prevent and fight fraud
and corruption.
The ‘Partnership
for Social Development in Croatia’
organised two conferences and a
number of working group meetings within the framework of the ‘Cross-Country
Legal and
Institutional Framework for Suppression of Fraud in Public Procurement’.
The
conferences covered a wide range of topics that are relevant in the development and
implementation of anti-fraud policies in Croatia and Romania, such as drafting risk
assessments, consultations with relevant policy stakeholders, further development of anti-
fraud tools as well as ways to address bottlenecks in the current legal and institutional
framework to fight fraud and corruption. The conferences and meetings took place between
November 2013 and May 2014 and were attended by 188 participants from law enforcement
authorities and the legal profession.
The project led to the following results:
It laid the groundwork for changes in the Romanian public procurement (PP) system;
The research undertaken gave clear insight into what is happening in the Romanian PP
system and possible PP-related risks were identified;
The Croatian experience was used as a model to try to improve the Romanian PP
system;
Romanian stakeholders have been acquainted with the Croatian PP system and
experience regarding the changes that were introduced in 2011/2012;
The relevant stakeholders started to discuss the need for a new PP Act and more
transparent PP system.
3.2 Increasing the protection of the financial interests of the Union against
fraud by facilitating the exchange of information, experiences and best
practices, including staff exchanges
32
The general and legal training activities in particular contributed to achieving this objective,
while exchanges of information through the AMT and CONTRAFFIC tools increasingly
support customs in drawing up risk analyses as the basis for their targeted controls.
In October 2014, OLAF organised the
12th OLAF Fraud Prosecutors Conference
in Rome,
which was attended by more than 120 public prosecutors from all the EU Member States. The
main objective of the conference was to discuss with the practitioners from the Member States
the negotiated proposal for the establishment of a European Public Prosecutor’s Office. The
conference provided a forum in which practitioners could express their views on the proposal,
providing the Commission and the Member States with valuable input.
32
Article 1(2)(b) and Article 1(a)(a)(iii) of Decision 804/2004/EC.
12
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3.3 Strengthening the fight against fraud and other illegal activities by
providing technical and operational support to national investigation, and in
particular customs and law enforcement, authorities
33
The Programme provided grants for the purchase of technical equipment to be used by
investigation, customs and law enforcement authorities in order to:
ensure the availability of better technical equipment across the EU and increase
compatibility to facilitate cross-border cooperation and achieve procurement savings;
make efficient use of the equipment acquired;
facilitate joint operations and international support for operations;
be better at detecting offences and provide higher quality of evidence for use in court
proceedings.
The grants also cover expenditure for the maintenance of equipment as well as specific
technical training for operational staff to ensure its optimal usage and management.
Beneficiaries of technical assistance grants have started reporting on the results one year after
the closing date of the agreement, thus enabling a better overview and understanding of the
longer-term impact of the Programme. Beneficiaries report for example on the number and
amount of cigarette and tobacco seizures, estimates of the prevented losses to national and the
Union’s budget, the emergence of new fraud schemes, the detection of networks of organised
crime groups or the number of arrests made. This information contributes to improving the
transparency of the Programme’s implementation, insofar as such transparency does not
endanger ongoing operations and investigations, and helps identify the strengths and
weaknesses of the Programme’s implementation.
The Commission received reports on the implementation of grants that were funded under the
Hercule II budgets of previous years. Even though it is difficult and sometimes impossible to
establish a direct causal relationship between the grant support on the one hand and the results
achieved with the equipment purchased on the other hand, it can certainly be assumed that
without the financial support a substantially lower number of arrests, seizures and convictions
would have been made and that the efficiency and effectiveness of staff using the equipment
would not be as high as is the case nowadays. The results obtained with x-ray scanners, for
example, clearly demonstrate this relationship, whereas it is more difficult to demonstrate in
the case of support given for the purchase of digital forensics software or devices to monitor
vehicles or persons suspected of involvement in illicit activities. A few examples are given
below.
The
Treasury Intelligence Department of the Polish Ministry of Finance
upgraded
telecom devices and purchased optical surveillance systems used in surveillance vehicles. The
equipment is used for monitoring the movements of people, cars and trucks during operations
in support of investigations in relation to the smuggling of tobacco products as well as the
evasion of VAT and import duties. The equipment was used in several operations and
investigations, such as:
an investigation into irregularities with imports from China leading to the undue
refunding of VAT to economic operators;
an operation allowing the detection of illegal cigarette imports by an organised crime
group which accounted for losses to the national budget of more than EUR 21 million;
an investigation into suspicions in relation to illicit trade in fuel, where the estimated
Article 1(2)(c) of Decision 804/2004/EC.
33
13
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losses to the national budget amounted to more than EUR 10 million.
The
Hungarian National Tax and Customs Administration
(NTCA) purchased thermal
cameras and video cameras as well as tracking & tracing devices to improve the monitoring of
illegal crossings at its external eastern border. The equipment was, and continues to be, used
in many operations with the following tangible results:
following the deployment of the high-performance mobile observer, 355 581 boxes of
untaxed cigarettes (total value of EUR 900 000) were confiscated between August and
November 2014, representing increases of 106 % compared with the same period in
2013 and of 412 % compared to 2012;
hand-held thermal cameras were used in an operation leading to the detection of
56 500 boxes of stolen cigarettes with a total value of EUR 150 000. The same
equipment was used for operational procedures in relation to infringements of
industrial property rights where counterfeited detergents and cleaning products with a
total value of EUR 13 000 were confiscated. Ten persons were heard as suspects, three
of whom were held in custody;
specialised equipment was also used in investigating VAT evasion cases concerning
rapeseed oil and biodiesel products, with total damage of EUR 2.5 million. No seizure
of goods has been made but EUR 2.7 million was blocked as indemnity. Four persons
were detained in custody.
The
Greek Ministry of Citizen Protection
purchased tracking & tracing devices as well as
two surveillance vehicles for its daily operations. It reported the following results:
detection of an organised criminal group (6 persons) suspected of involvement in
cigarette and tobacco smuggling. The investigation led to the seizure of 1.6 million
packages of cigarettes and 540 tobacco packages with a value estimated at EUR 5.5
million;
detection of a group of 8 persons that smuggled oil, LPG and lubricants and evaded
the payment of import duties of up to EUR 1 million.
Examples of procured access to external databases
The Commission has procured access to external databases for use by law enforcement
authorities in the Member States. The trade information, company data or container
movements provide essential operational information for investigators in the Member States
and OLAF and are used as input for risk analyses by customs to target their controls.
A commercial database of
worldwide trade statistics
with aggregated figures is used by
both the Member States and OLAF to analyse
trade flows,
identify potentially suspicious
trade and cross-check allegations of customs fraud involving Member States. Cross-checks
can support decisions on whether to open a case or not, thus saving resources for all
concerned.
The Automated Monitoring Tool (AMT) is an IT tool developed by the Joint Research
Centre (JRC) and is used in joint customs operations by OLAF and the Member States
targeting the undervaluation of imported goods, which causes huge losses to the EU and
Member States’ budgets every year. The operation prevented the loss of EUR 80
million in customs duties. In one month, OLAF and the participating customs
14
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authorities detected more than 1 500 containers of goods whose customs value was
heavily underdeclared. This involved false descriptions of goods, false weights and
quantities, and counterfeit goods. In addition, the authorities identified several ‘missing’
traders and non-existent importers, triggering a number of criminal and administrative
investigations in several countries;
OLAF noticed changes in the trade pattern, namely a sudden increase in the export of
biodiesel from the USA to several third countries and a corresponding increase in
imports into different Member States of biodiesel from those third countries. A
commercial database of worldwide trade statistics was used to identify and quantify the
trade flows. If the product originates in the USA then anti-dumping and countervailing
duties are due. If originating in the third countries, no extra duties are due.
Investigations in several countries established that the product originates in the USA, is
transhipped via the third countries and the origin is misdeclared as being the third
countries to avoid extra duty payment. The outcome was that the Member States
involved recovered substantial amounts in customs duties;
On another occasion, trade flows identified from the database failed to confirm an
allegation of transhipment of a Chinese product via a third country and the case was
therefore dismissed. Although no revenue was recovered, there was a cost and time
saving to the Member States and OLAF;
Information related to the movements of vessels and containers has contributed to many
successful investigations in the area of international cigarette smuggling led by Member
States’ authorities in cooperation with OLAF. In one instance, the analysis based on
information collected from a database on movements of vessels produced significant
insights into the cigarette smugglers’ methods and
modus operandi
by monitoring the
vessels suspected of carrying contraband cigarettes;
Information on suspect containers is also a vital tool for OLAF and the Member States.
The movements of the containers are monitored with the aid of the CONTRAFFIC tool
(developed by the JRC) and a database providing information on vessel movements to
see where the container or ship is positioned. In the course of one OLAF investigation
related to the movements of containers involving several Member States, 12 seizures of
large quantities of contraband cigarettes were made with the aid of information on
container movements provided by the databases. These operations prevented substantial
losses to the EU budget in unpaid customs duties and taxes;
Customs duties, anti-dumping duties and quantitative or other import restrictions depend
on the origin of imported goods. Because of the large volumes of goods entering the EU
markets, customs officers are able to check only a small fraction of customs declarations.
Given the ever-rising volume of trade, carrying out this type of control manually is a
daunting task, as it is difficult to verify the authenticity of the declarations. The
CONTRAFFIC tool covers a significant percentage of the worldwide maritime
shipments effected by the main ocean carrier companies and was used to develop
automatic cross-checking of the origin declared by importers in the Single
Administrative Document (SAD) datasets,
detecting potentially fraudulent
declarations and supporting validation, in support of the activity of national customs
authorities.
15
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3.4 Limiting the currently known exposure of the Union’s financial interests
to fraud, corruption and other illegal activities with a view to reducing the
development of an illegal economy in key risk areas such as organised fraud,
including cigarette smuggling and counterfeiting
34
Several actions contributed to achieving this objective in 2014. The widespread availability of
illicit tobacco within the EU has led to the loss of considerable tax and duty revenues (losses
to the EU and Member State budgets as a result of cigarette smuggling are estimated to be at
least EUR 10 billion per year
35
). One feature of the illicit market for cigarettes in the EU is the
significant quantity of counterfeit products available at lower cost than the genuine products.
Examples of these actions are given below:
The
Polish Customs Chamber
purchased x-ray scanners and video endoscopes that are used
for checking vehicles and baggage at the EU’s external eastern border, which is particularly
exposed to illegal imports of cigarettes and tobacco. The beneficiary reported that, as a result
of the use of this equipment, 228 242 smuggled cigarettes were confiscated, representing EUR
9 000 in unpaid VAT and EUR 35 000 in unpaid excise duty.
The German Ministry of Finance
purchased 3 mobile x-ray scanners in 2012. The ongoing
use of the scanners in 2014 led to the seizure of 56.50 kg of smuggled tobacco, 6 005 860
cigarettes, 588 litres of fuel and 129 kg of amphetamines.
The Romanian Arad County Police Inspectorate coordinated between February and April
2014 an action entitled ‘PRO-JET-Development of a professional law enforcement network in
Romania, Hungary, Serbia and Bulgaria, involved in the fight against cigarette smuggling and
counterfeiting’. It involved on-the-spot checks at border crossing points along the Romanian
border, organisation of seminars, working groups as well as the publication of a handbook on
preventing and combating cigarette smuggling. The results of a survey among the participants
indicated that they had acquired knowledge and awareness on the following issues:
The national legal framework for protection of the Union’s financial interests and the fight
against cigarette smuggling and counterfeiting as implemented in the four countries
participating in the project (Bulgaria, Hungary, Romania and Serbia);
Possibilities for combating smuggling at the south-west border of Romania; and
Inter-institutional cooperation between the Romanian police and other law enforcement
agencies.
The training also gave the participants an opportunity to exchange experiences and best
practices related to protection of the Union’s financial interests and the fight against cigarette
smuggling and counterfeiting.
The
Financial Directorate of the Slovak Republic
organised between April and June 2014
several seminars on the subject of ‘Fight against smuggling of cigarettes and illegal tobacco
production’. The five-day seminars were organised for customs officers from different
organisational units of the Slovak financial administration, working in the area focused on
fighting against cigarette smuggling and illegal tobacco production. The objectives of the
34
35
Article 1(2)(e) of Decision 804/2004/EC.
COM(2013) 324 final of 6 June 2013: Stepping up the fight against cigarette smuggling and other forms of illicit trade in tobacco
products – A comprehensive EU strategy.
16
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project were to:
- make officers from the Slovak Custom Administration more efficient in detecting customs
fraud in the area of cigarette and tobacco smuggling and counterfeiting;
- improve knowledge of procedures and legislation in the fight against cigarette smuggling
and illegal tobacco production by exchanging information and experiences in this field.
19th Task Group Cigarettes Conference
organised by OLAF in October 2014 in Prague
brought together customs and law enforcement officials from all the Member States,
candidate countries, third countries and international organisations. Through this type of event
the Member States are encouraged to improve operational cooperation by sharing analytical
information and intelligence among their customs authorities and relevant EU institutions,
bodies, agencies and competent offices.
3.5 Enhancing the degree of development of the specific legal and judicial
protection of the financial interests of the Union against fraud by promoting
comparative law analysis
36
This operational objective is mainly achieved through legal training grants that are awarded to
comparative law studies, legal conferences and seminars and publications. The conferences
are attended by prosecutors, lawyers, investigators, police officers, academics, researchers and
national civil servants, as well as officials of the EU institutions. The purpose of these
conferences and seminars is to promote the dissemination of legal information on the latest
developments in the area of fraud prevention and the fight against fraud, and they constitute a
good forum for discussion of future legislative solutions in the field of protection of the EU’s
financial interests. The Programme has continued funding the publication of ‘eucrim – The
European Criminal Law Associations’ Forum, which was published four times in 2014 by the
German Max Planck Institute. The following subjects were addressed: current developments
in the protection of the EU’s financial interests and the activities of OLAF, the latest
developments in relation to EU criminal policy, threats to the EU internal market and VAT
fraud, as well as judicial control in the EU. It has a print run of 2000 copies, which are
distributed free of charge to universities, libraries, courts, law enforcement authorities and
individual subscribers. The publication is also available on the internet
37
.
The Hague University of Applied Sciences
organised a seminar on
‘Negotiated
settlements for corruption offences: A European perspective’,
which took place in May
2014 in the Hague, the Netherlands. The key objective of the seminar was to identify and
assess laws and initiatives of selected European jurisdictions in order to determine areas of
commonality, differences and scope for harmonisation with regard to negotiated settlements
for corruption offences. The seminar also sought to draw up a roadmap of key issues that
need to be addressed with regard to a European perspective on negotiated settlements.
Researchers and experts from eight European countries assessed the prospects of negotiated
settlements as a strategy in the fight against corruption. The country reports produced from
this exercise provided a clear and comparative viewpoint of the regulatory and enforcement
mechanisms regarding international corruption across the selected jurisdictions. The
participants were very satisfied about the quality and the relevance of this seminar. The
seminar proceedings as well as a book entitled ‘Negotiated Settlements for Corruption
36
37
Article 1a (b) (vii) of Decision 804/2004/EC.
eucrim.mpicc.de/
17
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Offences: A European Perspective’ (edited by Dr Abiola Makinwa, Eleven International
Publishing) make a useful contribution to the growing discussion about a European
perspective on the issue of negotiated settlements as well as to OLAF’s activities in this
area.
The
ESADE Foundation – University Ramon Llull
conducted a comparative law study on
‘Avoiding Fraud in Cohesion Policy 2014-2020: a comparative study on the correct
observance and implementation of the public procurement EU regulations by managing and
contracting authorities’. This led to:
a comparative law study dealing with fraud in public procurement of ERDF and
Cohesion Fund projects within different operational programmes 2007-2013 with an
analysis of different practices in four Member States (Spain, Italy, Germany and Poland);
a one-day seminar for presenting and discussing the results of the comparative study
structured through round tables with speakers from universities, managing and certifying
authorities, national institutions and beneficiaries.
The results can be found on the action’s dedicated webpage:
http://www.esade.edu/research-
webs/eng/igdp/debate/fraud-prevention
4.
Communication
Successful implementation of the Programme required the development of a structured way to
inform potential beneficiaries of funding opportunities, and to provide answers to questions
from (potential) beneficiaries by means of four different functional email boxes
38
. Moreover,
the Commission is required
39
to disseminate information on the achievements and the results
of the actions that receive funding.
4.1
Informing potential applicants
Notices concerning the launch of calls for proposals were published in the Official Journal
40
and the full texts of the documents were made available on the Commission’s website
41
. The
professional networks were actively informed. Potential applicants were also informed via e-
mails sent to the members of the Advisory Committee for the Coordination of Fraud
Prevention (COCOLAF), the OLAF Anti-Fraud Communicators Network (OAFCN) and
European Judicial Training Network (EJTN). The training call was also published in the news
section of the e-Justice portal.
4.2
Dissemination of results
The dissemination of results achieved under the Hercule Programme, in particular technical
assistance, is rather sensitive as most of the achievements relate to investigations for which
information cannot be disclosed. Electronic and/or paper reports summarising the training
activities were distributed. Some beneficiaries posted the training materials on their websites
or created a dedicated website.
38
39
40
41
The four functional mailboxes consist of a general e-mailbox for the Hercule III programme and dedicated email boxes for
Technical Assistance, Anti-fraud Training and Legal Training.
Article 13(1) of Regulation 250/2014:
The Commissionshall on an ongoing basis disseminate, including on relevant websites, the
results of the activities supported under the Programme to increase transparency on the use of the
funds’.
OJ C 227 of 17 July 2014, p. 11.
http://ec.europa.eu/anti_fraud/about-us/funding/index_en.htm.
18
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4.3
Publicity
All beneficiaries of grants for training activities were requested to mention the support from
the Hercule III Programme:
in every publication (title page) or related material (e.g. studies, booklets, newsletters,
leaflets);
in electronic information (e.g. websites, audio-visual material, videos, software);
at information events (conferences, seminars);
via a link from their website to the Hercule III Programme’s site.
The Commission continued making improvements to the website giving information on the
Hercule Programmes. Beneficiaries of technical assistance grants were only required to
mention the Hercule support in their reports and any other document or press release that
reported on the results. There is no need to include a reference to Hercule funding on
equipment purchased with a grant, in particular if this might endanger operations or
investigations.
5.
Feedback from participants
As indicated in section 3.1, beneficiaries of grants for conferences have to carry out surveys
among the participants to collect information on the perceived quality and relevance of the
event. The total number of participants at the events in 2014 was almost 1700, who were all
requested to fill in an evaluation form with questions on the event’s relevance for their
professional activities, the quality of the organisation and the speakers or the venue and other
issues. The Commission received 1 401 questionnaires (83 % response rate) expressing a high
rate of satisfaction: more than 95 % of the participants considered the event good or excellent.
The feedback also confirmed that the events were attended, in general, by an audience as
targeted by the organisers. Moreover, the informal feedback collected by Commission staff
attending the events as well as the qualitative comments made in the evaluation forms helped
in identifying areas for improvement, such as conference logistics, prior information on
cancellations or the requirement for trainers to have the necessary pedagogical, linguistic and
cross-cultural skills.
6.
Conclusions and way forward
As described above, the implementation of the Programme in 2014 and the results reported by
the beneficiaries of grants were overall successful. Improved reporting of the results has led to
a better understanding of the impact of the EU’s interventions and greater transparency. The
reporting demonstrates the existence of a link between the actions undertaken within the
Programme and the protection of the EU’s financial interests, though the modest size of the
Programme should be taken into account in this respect. The revised reporting requirements
were introduced two years ago and are now starting to produce interesting findings on the
achievements of the Programme, in particular in the technical assistance area. These findings
tie in with the main results of the external evaluation carried out by an independent evaluator
in 2014, which was the input for the Commission’s report
42
on the achievement of the
objectives of the Hercule II Programme (2007-2013). For 2015, the Commission will aim at
further enhancing the quality of reporting on the Programme and it will also simplify and
streamline, as far as possible, the administrative procedures that applicants and grant
beneficiaries have to comply with to secure funding under the Programme.
42
COM(2015) 221 final of 27 May 2015.
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Annex 1: Grants and contracts awarded and finalised in 2014
Table 1 — Technical Assistance grants awarded in 2014
MS
Beneficiary
Subject
Total Awarded
in Euro
Co-fin
%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
LT
FR
ES
FR
BG
FR
LT
PL
MT
ES
FR
SE
NL
FR
BG
RO
PL
LV
BE
EL
PT
Lithuanian customs
French customs -Paris
Guardia Civil – Border command
French customs -Marseille
Bulgarian customs
French customs - Tourcoing
FCIS Lithuania
Polish customs
Maltese customs
Guardia Civil
French customs – Martinique
Swedish customs
FIOD Netherlands
French customs – Montreuil
Bulgarian Home Office
Bistrita County Police
Polish customs
KNAB Latvia
Belgian customs
Greek customs
Portuguese Judicial Police
Joint ANPRS Baltic States
Tracking services
Sniffer dogs
Laboratory equipment
x-ray scanners
Sniffer dogs
Investigation equipment
Backscatter scanner
Backscatter scanner
IMSI Catcher
x-ray scanner
ANPRS
Scanner
ANPRS
Intelligence equipment purchase
Cameras
Forensic software & equipment
Forensic software & equipment
Forensic equipment
Destruction of seizures
Forensic software & equipment
Total
2 222 560
115 072
233 527
104 000
1 467 224
38 777
46 336
852 800
584 000
330 578
100 167
224 000
261 180
209 598
284 442
64 681
184 466
186 411
42 520
200 000
931 017
8 683 354
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
80
Table 2 — Technical Assistance grants finalised in 2014
%
grant
to total
cost
MS
Beneficiary
Subject
Amount paid
1
2
3
4
5
6
PL
HU
PL
DE
FR
RO
Ministry of Finance, Treasury
Intelligence Department
National Tax and Customs
Administration
Customs Chamber in Olsztyn
Bundeskriminalamt – BKA
French Customs Laboratories
National Anti-Corruption
Directorate within the Office of
the General Prosecutor
Helsinki Police Department
Irish Tax and Customs, Office of
the Revenue Commissioners
Dirección general de la policía y
de la Guardia Civil
Modernisation of technical
equipment
Strengthening the eastern border
section of Hungary
Procurement of operational
equipment (x-ray scanner, video
endoscope)
Purchase of technical equipment
Lutte contre la contrebande et la
contrefaçon des cigarettes
Surveillance equipment
Technical equipment for
strengthening the investigational
capacity of the Helsinki Police
Mobile x-ray inspections van
Technical equipment
78 097
302 620
42 730
72 000
94 871
43 679
115 619
95 000
162 053
49
50
50
46
30
46
7
8
9
FI
IE
ES
48
49
50
20
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10
11
12
13
14
15
16
17
EE
RO
LU
LV
ES
RO
BE
HU
Estonian Tax and Customs Board
General Inspectorate of the
Romanian Police
Unité Spéciale de la Police
Grand-Ducale
Latvian State Revenue Service
Dirección general de la Policiá y
de la Guardia Civil
National Anti-Corruption
Directorate (DNA) within the
Office of the General Prosecutor
Belgian Federal Police
National Protective Service
Monitoring device for GSM
communications
Strengthening the operational
capacity for fighting cross-border
criminal economic activities
Technical tracking and
observation equipment
Purchase of a fuel unloading
system
Purchase of technical equipment
Technical support in fighting
corruption
Investigation support
Investigational capacity
enhancement in the field of the
fight against corruption.
Investigation tools for the
prevention of cigarette smuggling
in the EU
Support for implementing the
provisions of the National Action
Plan for preventing and
countering tax evasion
Sniffer dogs
Purchase of technical equipment
Mobile forensics tools in the fight
against fraud
Investigation support equipment
Technical equipment used by the
Slovak Customs in the fight
against cigarette smuggling
x-ray scanners
Assistance technique d’aide à
l’enquête
Investigation support equipment
Assistance technique d’aide à
l’enquête
Special audio tool for
investigation
Investigation support and
technical equipment
Giro-stabilised night and day
vision system
Equipment for the fight against
smuggling and counterfeiting of
tobacco products in Hungary
Special equipment for improving
fraud evidence-gathering abilities
Scanners
Technical support for detecting
the presence of cigarettes and
87 225
250 000
38 427
58 800
210 730
80 048
104 424
18 073
349 472
50
50
50
50
50
50
49
48
18
IT
Guardia di Finanza
48
19
RO
Anti-Corruption General
Directorate
State Border Guard of the
Republic of Latvia
AEAT – Spanish Customs)
Guardia di Finanza
Greek Ministry of Citizen
Protection
Financial Directorate of the
Slovak Republic
Office of the Revenue
Commissioners, Investigations &
Prosecutions Division
Service Public Fédéral Finances
Regional Police Headquarters
Lublin (KWP)
Belgian Federal Ministry of
Finance – Belgian Customs
General Directors of Customs -
GDC
Special Service for National
Security – SSNS
Spanish Customs
Special Service for National
Security – SSNS
Netherlands Police Agency
Belgian Customs and Excise
Administration
Estonian Police and Border Guard
Board – Central Criminal Police
108 340
12 747
160 875
224 811
54 332
56 350
45 000
15 578
80 000
26 916
78 097
259 100
393 500
389 877
43 464
547 315
174 000
50
20
21
22
23
24
LV
ES
IT
EL
SK
50
50
50
49
49
25
26
27
28
29
30
31
32
33
34
35
IE
BE
PL
BE
CZ
HU
ES
HU
NL
BE
EE
50
49
44
50
49
37
50
31
50
49
50
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tobacco
36
LT
Special investigation service of
the Republic of Lithuania
Central Anti-corruption Bureau,
Warsaw
Central Intelligence & Drugs
Enforcement, Revenue, IPD –
Irish Customs
National Tax and Customs
Administration (NTCA)
GSG9 der Bundespolizei
Finnish Customs – Tulli –
Enforcement department, Control
Unit
Bundeskriminalamt (BKA)
Meckenheim
Lithuanian Customs Criminal
Service
Central Bureau of Investigation –
Warsaw
Special investigation tools
Purchase of digital radio-
communication equipment and
development of technical security
countermeasures.
Enhanced tobacco detection
capability – Sniffer dogs
Equipment to fight against fraud
and cigarette smuggling
Technical equipment to monitor
persons and vehicles
Mobile x-ray scanner
Investigation support equipment
Special technical equipment for
facilitating investigations
Electronic surveillance equipment
and training to detect illicit
consignments of tobacco products
Total
80 513
41 736
49
37
PL
50
38
39
40
41
42
43
44
IE
HU
DE
FI
DE
LT
PL
12 151
211 943
108 698
734 507
80 371
117 151
399 641
6 660 881
50
50
48
50
50
50
50
48
Table 3 — Databases that were contracted under the Hercule III budget in 2014
Name
1
2
3
CTI
NTELX
GTI
GRS
4
D&B reporting
system
5
SEASEARCHER
Content
China Trade Information: Detailed shipments of
Chinese imports and exports
Information on ship manifests
Global Trade Information Services
Global Reference Solution: contains basic company
information from all over the world and gives
information on links between companies
Dun & Bradstreet: Financial details of companies all
over the world
Information on vessels and vessel movements
Total committed under 2014 budget
249 480
1 756 480
Total Price in Euro
59 960*
732 000
200 000
575 000
* The CTI subscription for 2014 was already committed in 2013 under the Hercule II budget and is not included
in the total.
22
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Table 4 — Training grants awarded in 2014
MS
Beneficiary
Subject
Commitments
in Euro
Co-fin
%
1
RO
Dolj County Police
Inspectorate
The Financial Crime
Investigation Service
(FCIS)
Istituto Europeo per lo
Sviluppo Socio Economico
2
LT
3
IT
4
HU
National Tax and Customs
Administration of Hungary
National Anticorruption
Directorate within the
Prosecutor’s Office
attached to the High Court
of Cassation and Justice
Financial Directorate of the
Slovak Republic
Agenzia Veneta per i
Pagamenti in Agricoltura -
Avepa
Oživení, o.s.
National Revenue Agency
(NRA)
State Revenue Service of
the Republic of Latvia
Freedom House Romania
Provincial Police
Headquarters in Gdańsk
INTACT-INcreasing the Awareness of law
enforcement agencies involved in the fight
against smuggling and counterfeiting of
tobacco products in Romania, Hungary,
Bulgaria
Towards more effective cross-border
cooperation against fraud affecting the
EU’s financial interests
EU-funded actions: rules, laws and best
practice sharing in the field of fraud
prevention
Enhancing international cooperation
between the partner authorities involved to
strengthen the fight against infringements
affecting the financial interests of the EU
on the EU’s external and internal borders
Fraud in respect of EU revenue by
simulated customs operations - typologies
and methods of investigation
Training focused on detection of smuggled
and counterfeited tobacco products in air,
land and maritime container transport
A new leaf - Agricultural networking
exchanging witnesses and leading
experiences
Whistleblowing: The way to protect the
financial interests of the EU
Increasing NRA’s administrative capacity
in preventing and investigating
Seminar on detection and prevention of
VAT fraud
Better legal protection of the EU’s
financial interests in Romanian public
procurement
Identifying illegal production and
distribution of excise goods
Total
68 696
80
10 733
76 347.
77
80
45 759
80
5
RO
29 674
80
6
SK
61 500
118 381
43 722
46 014
24 353
69 030
27 778
621 986
80
7
8
9
10
11
12
IT
CZ
BG
LV
RO
PL
80
80
80
80
80
80
80
23
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Table 5 — Procured conferences organised by the Commission in 2014
Dates
Conference Title
19th Task Group Cigarettes
Conference
Location
Prague,
Czech
Republic
No of
participants
93
Amount
paid in
Euro
150 809
1
6-9 October 2014
Objectives: To strengthen international cooperation and coordination in the EU and with third countries through comparison and
discussion of the most salient issues and most important criticalities and by exchange of best practices.
2
13-14 October 2014
Operational Aspects of Fighting
Fraud in Structural Funds
Rome,
Italy
80
125 284
Objectives: Sharing best practice on the implementation of anti-fraud measures; Presenting to Member States challenges on
Structural Funds fraud; Promoting cooperation between OLAF and Member States; Promoting cooperation between
administrative, law enforcement and judicial authorities in the Member States and at EU level; Describing success stories and
offering support in facing difficulties.
3
26-28 October 2014
12
th
OLAF Conference of Fraud
Prosecutors
Rome,
Italy
127
168 533
Objectives: To discuss with practitioners from all Member States the currently negotiated proposal for the establishment of a
European Public Prosecutor’s Office (EPPO). The EPPO file is a priority for the Commission and OLAF; once established, the
EPPO could have a major impact on OLAF’s future competences and structure.
4
24-26 September 2014
AFCOS Training Conference
Sofia,
Bulgaria
60
63 772
Objectives: The main objectives of the conference were: to bring together AFCOS and other relevant authorities’ representatives
from the candidate countries, potential candidate countries and some of the Member States; to present the work of OLAF and
AFCOS, their cooperation; to discuss challenges relevant to mutual cooperation; to share best practices and experience in the areas
of protection of the EU’s financial interests and fight against fraud, which are especially important to countries joining the EU
(e.g. functioning of AFCOS, investigative cooperation, preparation of anti-fraud strategy, irregularity reporting).
5
9-11 December 2014
Regional Workshop on the
Implementation of the FCTC
Protocol
Naypyitaw,
Myanmar
50
97 352
Objectives: To promote the entry into force of the Framework Convention Tobacco Control (FCTC) Protocol; To exchange views
and information on ways to implement the Protocol after its entry into force.
6
27 June 2014
Debriefing meeting JCO Ermis
Athens,
Greece
38
37 338
Objectives: Drawing up of recommendations on specific actions; exchange of information, best practices and anti-fraud methods,
techniques and modus operandi; Improvement of operational cooperation between the Commission (OLAF) and its partners.
7
4-5 September 2014
Debriefing meeting JCO Snake
Brussels,
Belgium
47
48 874
Objectives: Drawing up of recommendations on specific actions; exchange of information, best practices and anti-fraud methods,
techniques and modus operandi; Improvement of operational cooperation between the Commission (OLAF) and its partners and
the drafting of a final report.
8
4 December 2014
Debriefing meeting JCO Athena
IV
Riga, Latvia
32
22 091
Objectives: Drawing up of recommendations on specific actions; exchange of information, best practices and anti-fraud methods,
techniques and modus operandi; Improvement of operational cooperation between the Commission (OLAF) and its partners and
the drafting of a final report.
9
2-3 October 2014
Debriefing meeting JCO
Replica
Brussels,
Belgium
60
92 022
Objectives: Drawing up of recommendations on specific actions; exchange of information, best practices and anti-fraud methods,
techniques and modus operandi; Improvement of operational cooperation between the Commission (OLAF) and its partners and
the drafting of a final report.
Total
587
806 075
24
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Table 6 — Training grants finalised in 2014
MS
1
2
1.
DE
3.
BE
Beneficiary
The Chief Public 2.
Prosecutor
4.
Institute for
Judiciary Training
6.
Title
European Public Prosecutor’s Office – Protection of the
EU’s financial interests – Jan 2014, Munich
Case management and the use of EU legislation/tools:
Key components in the fight against financial crime –
May 2014, Brussels
PRO-NET- Development of a professional law
enforcement network in Romania, Hungary, Serbia and
Bulgaria, involved in the fight against cigarette
smuggling and counterfeiting – Dec 2013/Feb
2014/Apr 2014, Arad
Seminar on Countering Tobacco Smuggling and
Counterfeit Goods - March 2014, Piatra Neamt
Comprehensive as well as practical training sessions for
Balkan countries and Turkey in the field of public
procurement control in order to further strengthen the
capacities of ex-ante and in-built controls for detecting
and eliminating possible irregularities and fraud cases -
July-Aug. 2014
Protecting the European Union’s financial interests
through acquisition of practical skills in identifying
illegal production and distribution of tobacco, spirits
and pharmaceuticals, and collaboration between
services - June 2014,
Mikolajki
Safeguarding EU funds against fraud & corruption
through the civil control mechanism of Integrity Pacts -
Nov 2013, Budapest
Monitoring the spending of publicity budgets of the
EU-funded projects – the Romanian experience - June
2014, Bucharest
Pomeranian Police Protecting the European Union’s
financial interests – May 2014, Gdansk
Training on interpretation of the images generated on
the scanning devices – May 2014, LV/EE
Balkan forum for the promotion of public-private
partnerships as an anti-corruption instrument – Dec
2013, Sofia
Strengthening the capability of Bulgarian customs
authorities to fight customs fraud with a project on
combating customs-related illegal activities through the
Internet – Nov 2013, FR/ DE/CZ study visits
Fight against smuggling of cigarettes and illegal
tobacco production seminar – April-June 2014, Vysoka
Tatry
Cooperation and strategy to fight against illicit
trafficking of counterfeit cigarettes and medicines in
the Western Balkans, Mediterranean Region, Eastern
neighbouring countries, Turkey and Italy – Feb-July
2014, Bucharest, Zagreb, Brussesls
Cross-Country Legal and Institutional Framework for
Suppression of Fraud in Public Procurement
Seminar and training activities aimed at exchanging
professional experiences amongst the Courts of Audit
of France, Greece, Italy, Portugal and Spain and the EU
institutions in the prevention of and fight against fraud
and other irregularities affecting the EU’s financial
interests – March 2014, Rome
Partici
pants
Total paid
94 064
75 051
Grant
%
80
76
93
65
3
5.
RO
Arad County Police
Inspectorate
Neamt County
8.
Police Inspectorate
10.
National
Development
Agency
12.
120
56 120
80
4
7.
RO
125
16 941
79
5
9.
HU
168
146 344
80
6
11. Province Police
PL
Headquarters in
Olsztyn
13.
15.
127
37 502
67
7
14. Transparency
HU
International
41
46 114
80
8
9
10
11
16. Center for
RO Independent
Journalism
17. Provincial Police 18.
PL
HQ Gdańsk
19. Estonian Tax and 20.
EE
Customs Board
22.
21. C.R.E.A.M.
BG
Bulgaria
24.
23. National Customs
BG
Agency
25. Financial
26.
SK
Directorate of the
Slovak Republic
28.
27. Agenzia delle
IT
Dogane e dei
Monopoli
29. Partnership for 30.
HR
Social Development
32.
31. Corte dei conti -
Seminario di
IT
formazione
permanente
60
200
40
116
40 265
51 512
23 203
41 983
79
80
80
80
12
14
14 993
80
13
84
37 665
79
14
64
179 145
80
15
142
48 260
80
16
179
56 978
64
Total
Table 7 — Legal Training & Studies grants awarded in 2014
1 638
966 140
78
25
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1545187_0027.png
MS
Beneficiary
Subject
Annual Forum on Combating Corruption in the EU 2015:
Freezing, Confiscation and
Handing over of Proceeds of Crime
Effective coordination of control systems for preventing
fraud with Structural Funds in
new EU Member States
eucrim: The European Criminal Law Associations’
Forum - periodical on the protection of the EU’s financial
interests
Criminal and Administrative Investigations in the field of
VAT and Customs Duties. From National Practices to an
EU Integrated System of Information and Evidence
Exchange
EPPO and OLAF investigations: the judicial review and
procedural guarantees
European criminal procedure law serving to protect the
EU’s financial interests: State of play And challenges
Interactions between the EPPO and national authorities
Relationships between national judicial authorities and
investigative agencies in view of the EPPO: operational
models and best practices in the fight against EU fraud
Commit-
ments in
Euro
54 358
41 443
64 315
Co-fin
%
80
1
DE
European Law Academy (ERA)
Association Institute for Public
Policy (IPP)
Max Planck Society for the
Advancement of Science
University of Bologna -
European School of
Advanced Fiscal Studies
Fondazione Lelio e Lisli Basso
- ISSOCO
Croatian Association Of
European Criminal Law
European Law Research
Association (ELRA)
University of Ferrara
2
RO
79
3
DE
80
4
IT
59 242
78 147
87 631
50 990
59 542
78
5
6
7
8
IT
HR
PL
IT
80
90
90
78
Total
Table 8 — Legal grants finalised in 2014
MS
1
2
495 668
82
Beneficiary
Title
No of
part.
N/A
106
Total
paid
49 033
69412
75 853
23 059
47 447
46 824
20 686
Co-fin
%
78
90
3
4
5
6
7
8
9
34. Eucrim - the European Criminal Law Associations’
DE
33. Max Planck Institute
Forum – 4 issues/year
Protecting fundamental and procedural rights - from the
35. Fondazione Lelio e
IT
investigation of OLAF to the future EPPO’ – June 2013,
Lisli Basso
Rome
The challenges of setting up a European Public
36. Centro di Diritto
IT
Prosecutor’s Office: definition of common rules and their
Penale Catania
impact on internal legal systems – June 2013, Catania
37. Center for the Study
EU’s financial interests under threat: New approaches in
BG
of Democracy
assessing the risk from fraud and corruption – May 2013
New challenges for anti-corruption measures and for
38. Austrian Association
protection of the EU’s financial interests (and the annual
AT
for the European
meeting of Presidents of the Associations) – May 2014,
Criminal Law
Vienna, Laxenburg
39. Academy of European Annual forum on combating corruption in the EU 2014:
DE
Law, Trier
new prevention and investigation techniques – Feb 2014
Seminar on the administrative transparency and
40. Galician School of
protection of the financial interests of the European
ES
Public Administration Union in the Galicia-North Portugal Euro region – March
2014, Santigo de Compostela
Prospects for criminal law at EU level in relation to the
41. Irish Centre for
IE
protection of the EU’s financial interests – March 2014,
European Law
Dublin
42. Centro Studi di Diritto The acquisition of evidence and defence guarantees in
IT
Penale Europeo
crimes against the financial interests of the European
Union - Jan 2014, Milano
140
60
87
80
99
83
67
89
115
90
53
27 650
33 559
90
200
90
Total
840
393 523
86
26