Eight defendants have been indicted in Romania in connection with a EUR 9 million fraud involving EU funds used for protective medical equipment during the Covid-19 pandemic, the European Public Prosecutor’s Office (EPPO) announced. The case targets a network accused of manipulating public procurement procedures to benefit selected suppliers.

The EPPO said six individuals and two companies were brought before the Bucharest tribunal over alleged irregularities in contracts awarded in 2020 and 2021.

According to the EU prosecutors, the group manipulated tenders for protective masks, disinfectants, and other medical supplies intended for hospitals, schools, and public institutions. They said 29 projects were awarded to companies linked to the network. 

 Two consultancy firms allegedly played a key role by preparing funding applications and structuring procurement procedures in a way that limited competition and allowed contracts to reach maximum funding thresholds. 

“By controlling the preparation of the documents for the projects, the consulting companies were able to structure funding applications in a way that allowed procurements to be set at the maximum amounts permitted by the managing authority, thereby limiting genuine competition and facilitating the misuse of public funds. It is further alleged that the consulting firms also used false or inaccurate documents,” reads the EPPO press release.

The projects were financed through the EU’s REACT-EU programme. Prosecutors estimated that the scheme caused damage of more than EUR 9 million to the EU budget.

Assets worth around EUR 3.6 million have already been seized as part of efforts to recover losses. The investigation involved searches, interviews with over 250 witnesses, and cooperation with multiple European and Romanian authorities.

If convicted, the defendants face prison sentences ranging from three to more than ten years. The companies involved could also face fines, asset confiscation, and temporary bans from participating in public procurement procedures.

All suspects are presumed innocent until proven guilty by Romanian courts.

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting, and bringing to judgment crimes against the financial interests of the EU.

irina.marica@romania-insider.com

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