OLAF has recommended recovering more than 91 million euros ($94.97 million) from a 114 million euros ($118.97 million) EU-funded project intended to provide power generators to Ukraine, citing procurement violations by RARS.
OLAF’s investigation is crucial to ensuring EU funds reach their intended destinations, a statement said Tuesday.
“We need every euro of EU support to Ukraine to reach those in need and guarantee that our taxpayers’ money is duly spent,” said Ville Itälä, OLAF Director-General. He added that protecting EU aid to Ukraine not only guarantees that taxpayers’ money is duly spent but is also a matter of security.
The investigation also led to the arrests of “at least three individuals,” though officials have not disclosed their identities or specific charges.
A June 2024 investigation uncovered overpricing, a lack of competition, and undue advantages granted to certain contractors. Some suppliers charged RARS up to 40 percent above their purchase costs.
OLAF also gathered evidence indicating that RARS granted undue advantages to contractors by issuing large advance payments without sufficient guarantees, exposing EU funds to significant financial risks.
The probe, launched in July 2023, examined alleged breaches of procurement rules, transparency, and financial management in the project. Despite its obligations under the EU grant agreement, RARS initially resisted cooperation. However, OLAF worked alongside Polish authorities, including the Central Anti-Corruption Bureau and the Public Prosecutor’s Office, to push the investigation forward.
The findings revealed that RARS failed to ensure a competitive bidding process, violating principles of transparency, competition, equal treatment, and financial oversight. As a result, OLAF recommended the recovery of 91 million, while authorities managed to prevent an additional 22 million euros ($22.96 million) from being spent.
