Title: Anti-fraud and anti-corruption measures in relation to the use of European Structural and Investment (ESI) Funds
1Anti-fraud and anti-corruption measures in
relation to the use of European Structural and
Investment (ESI) Funds
Pascal Boijmans Head of Unit "Competence Centre
for Administrative Capacity"
2Outline
- Rationale
- Legislative framework
- Assistance and tools available
- Anti-fraud and anti-corruption conference and
seminars in MS - Other on-going initiatives
3National administrative CapacitiesStrong
correlation between Absorption and Governance
Standardized Index based on Absorption data end
2013 for all funds (ERDF, CF, ESF, EAFRD, EFF)
and World Bank Governance Index 2012. Croatia is
an outlier due to short time for absorption.
4Strong correlation between Government
Effectiveness and Corruption
Latest data for all 28 Member States
5 Legislative Framework
- Article 59 (2) of the Financial Regulation
- New elements in the Common Provisions Regulation
(CPR) governing the implementation of European
Structural and Investment (ESI) Funds
6Article 59 (2) of the Financial Regulation
"When executing tasks relating to the
implementation of the budget, Member States shall
take all necessary measures, including
legislative, regulatory and administrative
measures, to protect the Union's financial
interests, namely by (b) preventing, detecting
and correcting irregularities and fraud."
7Anti-fraud requirements in Article 125.4(c) of
the CPR for 2014-2020
- For the 1st time in the Regulation governing the
implementation of ESI Funds explicit reference - "As regards the financial management and control
of the operational programme, the managing
authority shall - - put in place effective and proportionate
anti-fraud measures taking into account the risks
identified."
8Programming period 2014-2020 for ESI Funds
- Fight against fraud and corruption is high on the
agenda - both in the EU in general, and in the
ESI funds in particular - Stronger legal basis provides opportunity to step
up the game in fight against fraud and
corruption - For the ESI Funds no business as usual
- Zero tolerance to fraud and corruption in ESIF
9 Anti-Fraud and Anti-Corruption Measures
Assistance and Tools
- Everybody agrees that fraud and corruption is not
acceptable, but what can we do about it? - For 2014-2020 the Commission has developed a
number of new guidelines and tools - Fraud Risk Assessment Guidance Note
- ARACHNE
10EC Guidance Note on Fraud Risk Assessment and
Effective and Proportionate Anti-Fraud Measures
- Made available to MSs in mid-December 2013
- Provides assistance and recommendations to
Managing Authorities for implementation of
Article 125.4 c) - Provides fraud self-assessment tool - focuses on
fraud risks in relation to 3 key processes - selection of applicants
- implementation and verification of the operations
(including public procurement-related fraud
risks) - certification and payments.
11Commission's guidance provides a tool which can
mitigate fraud risks
- Assessing the degree of exposure to specific
fraud risks using a self-assessment tool provided
by the Commission - The type of additional anti-fraud measures to be
put in place should take into account already
existing mitigating controls - Proportional and effective a higher fraud risk
requires that anti-fraud measures are stepped up - During the programming period, the fraud risk
assessment should be carried out annually or
every second year
12ARACHNE risk scoring tool
- Data-mining tool developed by EC and offered for
use by Managing Authorities in MSs for free. - Objective
- Support the Management and Control Systems, to
lower the error rate and strengthen fraud
prevention and detection - Facilitate the continuous monitoring / overview
of the internal and external data regarding
projects, beneficiaries and contracts/contractors
13ARACHNE risk scoring tool
- Based on a set of risk indicators and alerts
- Customized to the nature of OP expenditures
- Using some key (internal) data of the projects
enriched with publicly available information
(external data)
14ARACHNE benefits
- In view of limited resources and multiplicity of
operations, key actors and systems - Promote the use of a risk based approach in the
verifications of the projects (focus on most
risky projects) - Complement the risk assessment with regard to
fraud alerts and irregularities - Identify possible irregular circumstances
continuously on the basis of predefined risk
criteria - Build an overall better defence against fraud and
errors
15 Anti-fraud and anti-corruption events
- Conference on anti-corruption and anti-fraud
measures in relation to the use of the ESI Funds. - Follow-up seminars in selected Member Sates
- Events organised by OLAF (Greece 26 and 27
February 2014)
16Conference on anti-corruption and anti-fraud
measures in relation to the use of the ESI Funds
- 3 December 2013, Brussels
- Organisers European Commission in co-operation
with Transparency International - 454 participants
- 28 EU MS different EC services REGIO, EMPL,
OLAF, HOME, MARKT, AGRI, MARE - Conclusion there is interest in further sharing
of hands-on practice, guidance and promote
awareness on the issues
17Seminars in 6 MS
18Seminars in MS - Dates
19Seminars in MS - Approach
20 Other on-going initiatives
- New Public Procurement directives
- new provisions on conflicts of interest (Art.21)
- illicit behavior by candidates/tenderers
(Art.22) - safeguards against undue preference (Art.39)
- obligation to transmit the text of concluded
high-value contracts to the oversight body
(Art.84) - Working Group (REGIO, MARKT, AGRI, EMPL, MARE and
EIB) on Public Procurement Action Plan some
initiatives - Prepare Practical Guidance on "How to avoid
common public procurement errors" - MS specific initiatives (RO BG Action Plans)
21Thank you !