Anti-fraud and anti-corruption
measures in relation to the use of
European Structural and
Investment (ESI) Funds
Pascal Boijmans
Head of Unit "Competence Centre for Administrative
Capacity"
DG Regional and Urban Policy
Outline
1. Rationale
2. Legislative framework
3. Assistance and tools available
4. Anti-fraud and anti-corruption
conference and seminars in MS
5. Other on-going initiatives
DG Regional and Urban Policy
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National administrative Capacities:
Strong correlation between Absorption and Governance
Standardized Index based on Absorption
data end 2013 for all funds (ERDF, CF,
ESF, EAFRD, EFF) and World Bank
Governance Index 2012. Croatia is an
outlier due to short time for absorption.
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Strong correlation between Government
Effectiveness and Corruption
Latest data for all 28
Member States
Regional
Policy
LEGISLATIVE FRAMEWORK
 Article 59 (2) of the Financial
Regulation
 New elements in the Common
Provisions Regulation (CPR)
governing the implementation of
European Structural and Investment
(ESI) Funds
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Article 59 (2) of the Financial
Regulation
"When executing tasks relating to the implementation
of the budget, Member States shall take all
necessary measures, including legislative,
regulatory and administrative measures, to protect
the Union's financial interests, namely by:
(b) preventing, detecting and correcting
irregularities and fraud."
Anti-fraud requirements in Article
125.4(c) of the CPR for 2014-2020
For the 1st time in the Regulation governing the
implementation of ESI Funds explicit reference:
"As regards the financial management and control
of the operational programme, the managing
authority shall:
- put in place effective and proportionate antifraud measures taking into account the risks
identified."
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Programming period 2014-2020
for ESI Funds
• Fight against fraud and corruption is high on
the agenda - both in the EU in general, and in
the ESI funds in particular;
• Stronger legal basis provides opportunity to
step up the game in fight against fraud and
corruption;
• For the ESI Funds – no business as usual;
• Zero tolerance to fraud and corruption in ESIF;
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ANTI-FRAUD AND ANTI-CORRUPTION
MEASURES –
ASSISTANCE AND TOOLS
Everybody agrees that fraud and corruption is not
acceptable, but what can we do about it?
For 2014-2020 the Commission has developed a
number of new guidelines and tools:
 Fraud Risk Assessment Guidance Note
 ARACHNE
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EC Guidance Note on
Fraud Risk Assessment and Effective and
Proportionate Anti-Fraud Measures
• Made available to MSs in mid-December 2013
• Provides assistance and recommendations to
Managing Authorities for implementation of Article
125.4 c)
• Provides fraud self-assessment tool - focuses on
fraud risks in relation to 3 key processes:
selection of applicants;
implementation and verification of the operations
(including public procurement-related fraud risks);
certification and payments.
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Commission's guidance provides
a tool which can mitigate fraud risks
• Assessing the degree of exposure to specific fraud risks
using a self-assessment tool provided by the
Commission
• The type of additional anti-fraud measures to be put in
place should take into account already existing
mitigating controls
• Proportional and effective: a higher fraud risk
requires that anti-fraud measures are stepped up
• During the programming period, the fraud risk
assessment should be carried out annually or
every second year
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ARACHNE – risk scoring tool
Data-mining tool developed by EC and offered for
use by Managing Authorities in MSs for free.
OBJECTIVE:
 Support the Management and Control Systems, to
lower the error rate and strengthen fraud
prevention and detection
 Facilitate the continuous monitoring / overview
of the internal and external data regarding
projects, beneficiaries and
contracts/contractors
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ARACHNE – risk scoring tool
•
Based on a set of risk indicators and
alerts
•
Customized to the nature of OP
expenditures
•
Using some key (internal) data of the
projects enriched with publicly available
information (external data)
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ARACHNE – benefits
In view of limited resources and multiplicity of
operations, key actors and systems:
 Promote the use of a risk based approach in
the verifications of the projects (focus on
most risky projects);
 Complement the risk assessment with regard
to fraud alerts and irregularities;
 Identify possible irregular circumstances
continuously on the basis of predefined risk
criteria;
 Build an overall better defence against fraud
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and errors
Anti-fraud and anti-corruption
events
• Conference on anti-corruption and antifraud measures in relation to the use of
the ESI Funds.
• Follow-up seminars in selected Member
Sates
• Events organised by OLAF (Greece 26 and
27 February 2014)
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Conference on anti-corruption and
anti-fraud measures in relation to the
use of the ESI Funds
 3 December 2013, Brussels
 Organisers: European Commission in co-operation
with Transparency International
 454 participants
 28 EU MS; different EC services: REGIO, EMPL,
OLAF, HOME, MARKT, AGRI, MARE
Conclusion: there is interest in further sharing of
hands-on practice, guidance and promote awareness
on the issues
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SEMINARS IN 6 MS
Where?
(lowest CPI)
• SK
• CZ
• BG
• RO
• IT
• HR
Target
group
(max 100)
• MAs, CAs, AAs,
IBs
• anti-corruption
bodies
• PP bodies
• civil society
Objectives
• Awareness of
new reg.
requirements
• New COM guides
+ tools
• Discuss planned
actions
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SEMINARS IN MS - DATES
SK
CZ
Bratislava
Prague
13 March
20 March
BG
RO
Sofia
Bucharest
9 April
May (tbc)
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SEMINARS
IN
MS - APPROACH
Agenda
Co-operative
endeavour
Commission
services
Transparency
International
country
chapters
Opening
session
Broad overview of
status quo and
future plans
Thematic
workshops
1. Fraud risk
assessment
2. IT tool "Arachne"
3. "Fraud-proofing"
public procurement
Closing
session
Reporting
suspected fraud
and protecting
whistleblowers
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OTHER ON-GOING INITIATIVES
1. New Public Procurement directives:




new provisions on conflicts of interest (Art.21);
illicit behavior by candidates/tenderers (Art.22);
safeguards against undue preference (Art.39);
obligation to transmit the text of concluded high-value
contracts to the oversight body (Art.84)
2. Working Group (REGIO, MARKT, AGRI, EMPL,
MARE and EIB) on Public Procurement Action
Plan: some initiatives
 Prepare Practical Guidance on "How to avoid common
public procurement errors"
 MS specific initiatives (RO & BG Action Plans)
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Thank you !
DG Regional and Urban Policy
Unit E1 "Competence Centre for Administrative Capacity-Building;
Solidarity Fund"
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