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(Luxembourg, 7 November 2024) – The European Public Prosecutor’s Office (EPPO) in Rotterdam (Netherlands) has finalised an investigation into a fraudulent scheme involving employment funds. The investigation focused on the misuse of European Social Fund (ESF) projects intended to promote sustainable employability for employees of small and medium-sized enterprises (SMEs) in the Netherlands.
The company inflated invoices for advisory services on sustainable employability for SMEs, co-financed by the ESF at a 50% rate. For instance, advisory services worth €10 000 were provided to an SME, but were falsely invoiced for €20 000 by the suspected company. Consequently, €10 000 were wrongly paid from the ESF to the SME.
Fraud was identified in 36 of these projects. Following the investigation, subsidies granted based on false or inflated invoices were successfully recovered from the involved SMEs, mitigating the financial damage to the ESF.
The fraud was detected by the competent agency of the Dutch Ministry of Social Affairs (UVB) and was reported to UVB by the curator of the now-bankrupt company. This prompted an EPPO investigation, conducted by the Netherlands Labour Inspectorate’s investigative service (NLA-IOD).
The two suspects will receive punitive orders for 180 and 140 hours of community service, respectively. Additionally, they will jointly pay €230 000 to settle the bankruptcy of their company.
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.