European Prosecutors Issue Indictments in Fraud Involving EU-Funded Tugs
The European Public Prosecutor’s Office (EPPO), the independent public prosecution office of the European Union, filed an indictment in Romania in a scheme it says that narrowed eligible bidding and purchased non-compliant tugs for operation on the Lower Danube. It estimates that it caused around €7 million in damage to the EU budget.
The fraud stems from funding as part of the 2014–2020 Large Infrastructure Operational Programme. It awarded approximately €7 million in EU funding, which was to be used as part of an effort to acquire two multi-purpose, ice-class tugboats. They were intended for river navigation, including during periods of low water, and to assist vessels in distress.
EPPO filed charges against four public officials from the Lower Danube River Administration (AFDJ Gala?i). Also indicted were an individual and a company that is also accused of having assisted in the alleged scheme.
The charges include rigging of the tender to narrow the field of eligible bidders and to favor a single company. EPPO says the tender specifications included technical requirements for seagoing vessels, although the tugboats were intended for inland waterways.
The tugboats were delivered in 2021 with an actual draft of 2.6 meters (8.5 feet), which exceeded the maximum of 2 meters (6.5 feet) specified in the contract. Because of the greater draft, EPPO says the tugboats can only be used safely when water levels are sufficiently high along their intended route, limiting their use on the Danube, particularly during periods of low water.
Despite this, it contends the four public officials accepted the vessels and signed final acceptance reports falsely stating that they met the technical requirements.
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If found guilty, the defendants face between three and ten and a half years of imprisonment.
