1. Fighting Corruption, EU Procurement and EU Subsidies Fraud in Belgium
Seminar in Warsaw
Bertrand VOLS

2. 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

3. 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

4. ORGANIZATION
STAFF (Theory) : 66

5. 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

6. 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

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

8. 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

9. 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

10. 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
278 Bil. €
0,55 Bil. €

11. DG AGRI €€

12. €€€€€€€
Financial management = from EU to the country / From country to the farmer
Control management = the same way €

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

14. Easy fraud scheme
No sheeps or always the same sheeps

15. 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

16. More complex fraud scheme

17. Forged offers Real price : 60000 € Subsidies = 50 % of the investment
Normaly : receiving €
Reality : receiving about € - Difference = €
Real price : €

18. Thank you
Questions ?