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.

This story was originally published by The Maritime Executive. Read the full story at The Maritime Executive →