Fighting Corruption, EU Procurement and EU Subsidies Fraud in Belgium Seminar in Warsaw 16-11-2016 Bertrand VOLS

Commissioner-general Administrative police Dir Gen Administrative police Dir Gen Judicial Police Dir Gen support 14 Judicial Districts 4 Central Judicial Directorates Serious Organized Crime Anti-Corruption Office

The Central Anti-Corruption Office Who are we ? Law enforcement agency Under supervision of the Federal Prosecutor : activity – organization – functionning National competence 50 police officers

ORGANIZATION STAFF (Theory) : 66

The Central Anti-Corruption Office Missions Judicial investigations ONLY – NO administrative control International obligations (UNCAC, OECD) Preventing Corruption (networking) Core business Public corruption, private corruption Procurement Fraud Subsidies Fraud, inclusive EU Funds Fraud

The Central Anti-Corruption Office « Context of Corruption and Fraud » Bribery Embezzlement Self-interest Trading in influence (of flavours) Extorsion Forgery of or in documents Abuse of function/position

The Central Anti-Corruption Office CLASSIC: Interviews House searches (PC, GSM, Accounting) Bank enquiries SPECIAL TECHNIQUES: - Wiretapping, Observation, Undercover

Law 10 februray 1999 related to the repression of corruption Public & Private Corruption Wide definition: Embezzelment, Self Interest, Trading of favours Proposal (active) = Offence Sollicitation/accept (passive) = Offence All kind of advantages Foreign civil servants in Belgium Belgian civil servants abroad

International Legal Tools Essentially : - Mutual Legal Assistance (MLA): 2 Teams / 2 Places - Joint Investigations Teams (JIT) : 1 Team / 1 Place Operational Actions Plan - EUROJUST : Coordination on demand Logistical support

Example of EU subsidies fraud CAP 1. PILAR DIRECT PAYMENTS MARKET MEASURES 2. PILAR RURAL DEVELOPMENT CAP = Common Agricultural Policy Direct payments = directly paid to the farmer related to the cultivated surface (amount for 1 hectare) Market measures = Common organization of the markets. Money aiming to support the agricultural sector (production, distribution) during crisis Rural development = social, economical and environmental approach of agriculture. Ex : supporting the funding of modern technologies in farms Amounts given for 2014-2020 278 Bil. € 0,55 Bil. €

DG AGRI 8.000.000 €€

€€€€€€€ Financial management = from EU to the country / From country to the farmer Control management = the same way €

Probability of fraud Surface Aid (1st Pilar) Complex controls Easy controls Surface Aid (1st Pilar) Investment project (2d Pilar)

Easy fraud scheme No sheeps or always the same sheeps

More complex fraud scheme Project 1 A: 1.000 B: 1.100 C: 1.200 Project 2 A: 1.100 B: 1.000 D: 1.200 Project 3 D: 1.200 B: 1.100 E: 1.000 Project 4 A: 1.000 D: 1.100 F: 1.200 Project 5 C: 1.100 B: 1.000 A: 1.200 Project 6 A: 1.200 D: 1.100 C: 1.000 5 specialized companies which are sharing the market Lower price wins… but this lower price is 2 or 3 times bigger than the normal price Project 7 D: 1.000 F: 1.100 E: 1.200 Project 8 E: 1.100 B: 1.000 A: 1.200 Project 9 A: 1.200 C: 1.100 E: 1.000

More complex fraud scheme

Forged offers Real price : 60000 € Subsidies = 50 % of the investment Normaly : receiving 30 000 € Reality : receiving about 42 500 € - Difference = 12 500 € Real price : 60000 €

Thank you Questions ? djsoc.ocrc-cdbc@police.belgium.eu