We now have the 2009 report of the European anti-fraud office, OLAF. The report outlines a number of case studies – misuse of Parliamentary expenses by an ex-MEP, embezzlement by the director of an NGO, widespread corruption and fraud in the management of the Global Fund in Uganda, etc. However, one Member State takes central stage in the report – and that is, yes, Bulgaria.
There were 68 active investigations in Bulgaria in 2009 – the most in any Member state for that period. 26 new cases were opened in 2009 in Bulgaria, out of 32 for the whole European Union. This is really extraordinary given the small population and scale of EU structural funding for Bulgaria. The main reason is that OLAF is currently investigating allegations of widespread fraud in the funding of meat-processing plants in Bulgaria under the SAPARD pre-accession funding program. Now, “allegations” does not mean “committed fraud”, but the issue is very worrying. The main issue here will be to distinguish real fraud cases from administrative irregularities. Given the scale of the investigations, they will have a systemic impact on the meat-processing sector in Bulgaria and thousands of jobs.