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Identifying and preventing fraud & corruption in ESI funds Building Anti-Fraud measures Lessons learned in the fight against fraud Case study: On-the-spot-checks with OLAF on the territory of the EU Workshop on innovative methods to combat fraud This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not represent the EC's official position Andon Tashukov, Legal Adviser AFCOS BG

Identifying and preventing fraud & corruption in ESI funds ... · Identifying and preventing fraud & corruption in ESI funds Building Anti-Fraud measures Lessons learned in the fight

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  • Identifying and preventing fraud & corruption in ESI funds

    Building Anti-Fraud measures Lessons learned in the fight against fraud

    Case study: On-the-spot-checks with OLAF on the territory

    of the EU

    Workshop on innovative methods to combat fraud

    This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The

    opinions expressed are those of the contractor only and do not represent the EC's official position

    Andon Tashukov,

    Legal Adviser

    AFCOS BG

  • ➢ Practical examples: ➢ EU Policies in fighting fraud ➢ Member-state policies in fighting fraud ➢ Practical Guide on conducting On the spot checks (OTSC) with OLAF in 10 steps to identify fraud, corruption or other illegal activity.

    ➢ Case Study – A case study worth 32 million euro.

    ➢ Workshop: Innovative methods to combat fraud.

    Presentation content

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • European union law

    Art. 325 TFEU and Commission

    decision establishing OLAF

    PIF Convention and PIF Directive -

    Directive 2017/1371

    Regulation 2988/95 on the protection

    of the EC financial interests

    Regulation 2185/96 concerning on

    the spot checks and inspections

    Regulation 883/2013 – OLAF

    concerning the investigations of

    OLAF

    EPPO Regulation - Regulation

    (EU) 2017/1939

    CAFS Commission Anti-Fraud

    Strategy

    Hercule Programme/Pericles

    Programme – Single Anti-

    Fraud Programme

    NAFS, AFCOS – together with

    MS

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    Policies of the EU in fighting fraud

  • Definitions: Irregularity and Fraud. Suspicions.

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    Irregularity: Regulation

    2988/95, CPR and

    Sectorial Regulations

    Suspected fraud: DR

    for Reporting,

    2015/1970-1973.

    Fraud: PIF Convention,

    PIF Directive

  • Member State experience in MCS

    Identifying the problems

    Adoption of Anti-Corruption

    Convention and creation of AFCOS

    Creation of AFCOS Council

    Adoption of National Ant-Fraud

    Strategy

    Implementation of Working

    plan of the NAFS

    Working groups Mechanism

    on National Level

    Fighting corruption

    Additional measures

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    Policies of the MS in fighting fraud

  • ➢ The Council had not carried out a risk analysis and had not developed a national antifraud Strategy.

    ➢ The Council had not forwarded reporting guidelines on irregularities to

    partner institutions, accompanied by additional guidance and/or training

    ➢ The Council could not take care of daily operations (meetings 2/3

    times a year). ➢ There was a need for an active secretariat/service staffed by people

    with technical expertise and language skills who could provide the link between national institutions and OLAF and also act as a help desk in order to bridge the gap between national institutions and OLAF

    Lessons learned: 1. Why Anti-Fraud didn’t work

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • 2. AFCOS Council Council for coordination in the fight against infringements

    affecting EU`s financial interests

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    ➢ High political level to discuss and support measures, taken by the national authorities in the fight against fraud with EU funds

    ➢ Interaction and cooperation with the Prosecutor`s Office

    Functions:

    ➢ 1. Suggests to the Council of Ministers projects of new legislative acts, strategy and action plan regarding fight against fraud with EU funds

    ➢ 2. Annual report for the activities to the Council of Ministers

    ➢ 3. Discusses issues regarding EU`s financial interests, makes decisions and takes measures for optimization of the process of the fight against fraud with EU funds

  • 2. AFCOS Council – Mechanism for dealing with problems regarding EU funding

    Chairperson: The Minister of Interior. Deputy-chairperson: The Deputy Minister of Interior.

    Members are high officials, such as ministers, deputy ministers, executive directors, heads of control bodies, i.e. everyone who has a part in the process of managing, spending or controlling EU funds, such as:

    • Deputy Ministers of Interior; Finances; Agriculture and Foods; Environment and Water; Labor and Social Policy; Transport, Information Technologies and Communication; Economy, Energy and Tourism; Regional Development and Public Works;

    • Heads of the State Fund Agriculture, Public Procurement Agency, Road Infrastructure Agency, National Agency of Fisheries and Aquaculture; Customs Agency, the Audit of European Union Funds Executive Agency, Public Financial Inspection Agency, Financial Intelligence Directorate within the State Agency for National Security, National Revenue Agency

    • Representatives of law enforcement bodies.

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • 3. National Anti Fraud Strategies

    2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

    2015 2016 2017 2018 2019

    First NAFS

    Accession to the EU

    Expand the activity of AFCOS

    Council

    European Commission

    Strategy - CAFS

    Project for NAFS 2014-2020 in CM

    Political crisis

    Final Approval after

    amendments

    Implementation of NAFS and first

    Action plan

    At each point of the timeline there is valid strategy in force

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • 4. Action plans as a measure for combating irregularities and fraud

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • Structural and Cohesion Funds

    Analysis of Irregularities Reported 2007 – 2013 EAGF and EAFRD

  • Analysis of Irregularities Reported 2007 – 2013

  • 5. Working groups on National Level

    Council of Ministers Decree 85/2007 creates a national mechanism of coordination on the EU matters

    In it, the Ministers and Heads of Institutions create interinstitutional working groups to help the Council of European matters within Council of ministers.

    The working groups draft, agree upon positions for the participation in the EU Council, Council of EU, informal ministers meetings and EU bodies.

    There are around 36 working groups

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    Council of EU

    Council EU matters

    Working group 1

    Working group 1

    Working group 1

  • 6. Fighting corruption and Judicial Reform

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    https://www.transparency.org/cpi2018

  • 7. Additional measures

    Commission for ascertainment and prevention of conflict of interests (2011)

    Center for Prevention and Countering Corruption and Organized crime (2010)

    Commission for Illegal Assets Ascertainment/confiscation (2005/2011)

    NEW Commission for combating corruption and confiscation of illegal assets (2018)

    Fraud Risk Assessment and Effective and proportionate antifraud measures

    Art. 125, par. 4 CPR Regulation

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • Case Study on OTSC with OLAF to identify fraud, corruption or other illegal activities with ESIF Funds

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • General provisions

    of on-the-spot checks (OTSC)

    Aimed to protect the financial interests of the EU.

    OTSC shall be prepared and conducted by the Commission in close cooperation with the competent authorities of the MS.

    The competent national authorities shall be promptly informed of the object, purpose and legal basis of controls in place.

    OTSC are carried out on economic operators to whom can be applied administrative measures and sanctions under Regulation 2988/95 and on other concerned economic operators.

    Provide evidence for the purpose of the investigation through making reports according to national law.

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • MAIN Functions on

    OLAF-AFCOS Cooperation

    1. National contact point to OLAF and to the relevant competent authorities in the other Member-States and in third countries.

    2. Realizes the operational cooperation with OLAF and exchanges information.

    3. Performs operative cooperation with OLAF in conducting the on-the-spot checks on the territory of Bulgaria.

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • MAIN Functions on

    OLAF-AFCOS Cooperation

    4. Receives signals concerning irregularities affecting the financial interests of the EU, and performs an analysis, evaluation and checks on them;

    5. Conducts administrative investigations on its own initiative or due to request made by OLAF.

    6. Provides, monitors, controls and coordinates the reporting of irregularities by the national institutions to the European Commission;

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • PRACTICAL GUIDE ON-THE-SPOT CHECKS

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    1. Gathering and expanding information

    2. Provision of participants 3. Update of the information of the on-going pre-trial proceedings and prosecution checks

    - AFCOS and Ministry of Interior

    databases

    - Commercial Register

    - Irregularity Register

    - Address visit

    - Logistical support – with

    computers, technics, cars

    - Economic operator

    - Prosecution’s office

    - Local police authorities

    - Public Financial Agency Inspection

    - Other competent authorities

  • 4. Interview preparation

    5. Final On-the-spot Check Plan

    6. Work meeting at AFCOS Directorate

    This training has been organised by EIPA under the Framework Contract Nr 2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    PRACTICAL GUIDE ON-THE-SPOT CHECKS

    By AFCOS

    By the Managing authority

    Collection of documents

    Must be communicated to the

    Minister of Interior

    Between OLAF inspectors,

    head of Unit OC and AFCOS

  • 7. Starting the on-the-spot check

    8. On-the-spot check core activities

    9. Finalizing the On-the-spot Check

    10. Analysis on the results

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    PRACTICAL GUIDE ON-THE-SPOT CHECKS

    - Written authorization

    - Identity of team

    - Purpose and scope of OTSC

    - Operative center and instant support

    - All kind of documentation;

    - computer data;

    - physical checks as to nature of

    quantity of goods;

    - budgetary and accountant documents,

    - documentation of the project etc.

    - Report of the OTSC

    - Objection and Comments

    - Work meeting in AFCOS

  • OLAF Anti-Fraud

    Services

    Public Financial Inspection Agency Prosecution and

    Judicial Authorities

    Customs authorities

    Police authorities Managing authorities and other national authorities

    Member-States and third country authorities

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • YEAR

    REQUESTS FOR

    ASSISTANCE FROM

    OLAF TO AFCOS

    REQUESTS

    FROM AFCOS TO

    OLAF

    ON-THE-SPOT

    CONTROLS AND

    MISSIONS

    COMPLAINTS

    RECEIVED IN

    AFCOS

    2007 6 10 2 24

    2008 28 12 1 82

    2009 46 4 7 54

    2010 58 5 12 87

    2011 98 4 2 116

    2012 75 5 1 80

    2013 82 8 9 104

    2014 88 10 20 147

    2015 77 8 35 213

    2016 71 8 30 166

    2017 104 9 4 98

    2018 92 5 10 (22 OTSC) 97

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    Source: Public annual reports of AFCOS Council, www.afcos.bg

    http://www.afcos.bg/

  • C R I M E

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • Workshop on identifying innovative methods to combat fraud and corruption

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

  • Andon Tashukov

    MINISTRY OF INTERIOR

    “Protection of the European Union’s financial interests” Directorate -

    AFCOS Bulgaria

    Sofia, blvd. “Rakovski” № 112

    email: [email protected]

    website: http://afcos.bg

    tel. +359888409979

    This training has been organised by EIPA under the Framework Contract Nr

    2018CE16BAT060. The opinions expressed are those of the contractor only and do not

    represent the EC's official position

    mailto:[email protected]://afcos.bg/