A Bulgarian businessman is facing charges in the Sofia District Court for attempted fraud involving nearly 1.92 million euros in EU funds. The indictment, filed by the European Public Prosecutor's Office (EPPO), accuses the manager of a Bulgarian company of providing false information in an effort to secure financing from the European Development Fund (EDF), which supports economic development in Africa, the Caribbean, the Pacific, and other regions.

The case originates from 2021 when the Republic of Congo's Ministry of Planning, Statistics, and Regional Integration launched a public tender for agricultural and industrial equipment. The tender aimed to procure machinery such as tractors, plows, seeders, irrigation systems, and composting devices to train and support local entrepreneurs in the agriculture, food, and woodworking industries. The funding, provided by the EU Delegation in the Republic of Congo, stipulated that the equipment must originate from an EU member state or authorized territory.

In his bid, the Bulgarian businessman declared that most of the equipment was manufactured in Bulgaria, aligning with the tender requirements. However, an investigation revealed that some of the items originated in China, and in certain instances, the listed manufacturers were fictitious. This discovery led to the rejection of the company’s bid and a report to the European Public Prosecutor’s Office by the European Anti-Fraud Office (OLAF).

The EPPO has stated that the accused attempted to defraud the EU project, which was specifically designed to bolster local entrepreneurs in developing regions. By providing false documentation regarding the origin of the equipment, the defendant allegedly sought to mislead the project evaluators to secure the lucrative contract.

If found guilty, the businessman faces a prison sentence of one to six years and a fine ranging from 1,000 to 5,000 euros. The case highlights the scrutiny under which EU-funded projects operate, particularly those implemented in developing countries. It also underscores the role of the EPPO in safeguarding EU financial interests against fraud and mismanagement.

Background:

The European Public Prosecutor's Office, based in Luxembourg, is tasked with investigating and prosecuting crimes against the EU's financial interests. Established in 2021, the EPPO operates independently to ensure transparency and accountability in the allocation and utilization of EU funds across member states and partner regions. This case, involving fraudulent practices linked to EU-funded development initiatives, reflects the challenges of ensuring compliance with strict procurement rules in international projects.

Sources:

• Bulgarian National Radio (BNR)
• BoulevardBulgaria.bg
• Lex.bg