Fraud halts EU funds for Bulgaria

BULGARIA will not receive €600 million in EU funds due to fraud and corruption, the first time the union’s commission has taken such action.

The action follows findings by OLAF, the EU’s anti-fraud office, that about €6.5m was being siphoned off by a criminal network of more than 50 Bulgarian and other off-shore companies.

They said corruption goes to the highest levels in the country, with one criminal network managed and financed by two people close to Bulgaria’s government.

“One of the individuals allegedly financed the election campaign of the current Bulgarian president and is the business partner of the former deputy foreign minister, who, according to information available, attempted to influence an ongoing investigation into that individual,” the report said.

Bulgaria joined the union in January last year and is due to receive €7 billion over the next five years, but the country’s criminal justice system cannot get to grips with corruption.

Accreditation of two agencies handling EU funds has also been withdrawn.