(Luxembourg, 25 October 2024) – Last week, the European Public Prosecutor’s Office (EPPO) in Bucharest (Romania) filed an indictment at the Bucharest Tribunal against three Romanian citizens, a former mayor and his two sons, for fraud involving medical services, financed by the EU.
The three are accused of colluding to obtain EU funds via the Local Action Group (GAL), an association formed by representatives of public institutions, the private sector and civil society, which is responsible for creating a rural development strategy and for its implementation.
According to the investigation, the former mayor used his position as president of the GAL and of its board of directors to obtain non-refundable funding for the benefit of a company owned by the family, as the municipality which he represented at the time had a ban on accessing EU funds. The funds were allocated for establishing a medical practice in the community, one of the fields where the company operated.
The investigation showed that the GAL was controlled by the former mayor and his two sons, one of whom was also its manager. The association headquarters were also established in a location owned by the family. The former mayor allegedly took most of the decisions for his own benefit, without convening the General Assembly or the Board of Directors – thus contravening the statutes of the GAL, which established that the General Assembly was the supreme governing body. According to the investigation, when the approval of the governing bodies was necessary, these were falsely drawn up, using copies of attendance lists from previous meetings, or asking the members to sign attendance lists without informing them of the decisions taken.
With this conduct, the defendants obtained €170 946 (RON 817 637,10) for the benefit of the company controlled by the family.
In order to compensate the damage to the EU budget, an apartment belonging to the defendants was seized, located in Bucharest.
If found guilty, the defendants face between two and seven years’ imprisonment.
All persons involved are presumed innocent until proven guilty by the competent Romanian courts of law.
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.