EPPO Concludes Investigation into Fraudulent Use of Employment Funds in the Netherlands.
The European Public Prosecutor’s Office (EPPO) in Rotterdam has successfully concluded an investigation into a fraudulent scheme involving employment funds meant to support small and medium-sized enterprises (SMEs) in the Netherlands.
The inquiry focused on the misuse of European Social Fund (ESF) projects, which were designed to enhance sustainable employability for employees of SMEs.
Fraudulent Invoicing and Inflated Claims
The investigation revealed that a company involved in the scheme had submitted inflated invoices for advisory services related to sustainable employability. These services were co-financed by the ESF at a rate of 50%. For instance, while an advisory service valued at €10,000 was provided to an SME, the company fraudulently invoiced €20,000, thereby requesting and receiving €10,000 more than was warranted. This led to €10,000 in misappropriated funds being disbursed from the ESF to the implicated SMEs.
Confirmation of Fraud Across 36 Projects
Fraud was confirmed in 36 different projects, where subsidies were awarded based on false or inflated invoices. Thanks to the investigation, these fraudulent subsidies were successfully reclaimed, helping to mitigate the financial damage to the European Social Fund.
Investigation and Legal Actions
The fraud was initially uncovered by the Dutch Ministry of Social Affairs (UVB), following an alert from the curator of the now-defunct company. This led to a comprehensive investigation conducted by the Netherlands Labour Inspectorate (NLA-IOD), which worked closely with the EPPO.
As a result of the investigation, two individuals were implicated and will face community service sentences—180 and 140 hours, respectively. Additionally, they are required to jointly repay €230,000 to cover the bankruptcy of their company and the resulting financial loss.
Role of the European Public Prosecutor’s Office (EPPO)
The EPPO, an independent public prosecution office for the European Union, is tasked with investigating and prosecuting crimes that threaten the financial interests of the EU. Its involvement in this case underscores the importance of protecting EU funding and ensuring that resources meant for public welfare and development are not misused.
The successful investigation and legal outcomes mark an important step in preventing similar fraudulent schemes and ensuring that funds meant to support SMEs and sustainable employment practices are used appropriately. By holding those responsible accountable, the EPPO continues its critical role in safeguarding the financial integrity of the European Union.
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