EPPO indicts 15 suspects over €3.5m EU education fraud scheme in Portugal
The European Public Prosecutor’s Office (EPPO) in Porto (Portugal) has indicted 12 individuals, including four public officials, and three companies, for their alleged participation in a fraud scheme involving projects funded by the Recovery and Resilience Facility (RRF) for public education institutions, following an investigation code-named Nexus.
The indictment was filed on 11 July in the Central Criminal Court of Porto. Two of the defendants are in pre-trial detention.
At issue are public contracts financed by RRF funds for the acquisition of IT and cybersecurity equipment by a public university and a group of secondary schools. According to the evidence, the defendants participated in an organised and systematic criminal scheme established to obtain privileged information relating to public contracts, with the aim of winning public tenders. Procurement procedures for information technology equipment were systematically designed to meet the supplier’s commercial interests and technical requirements.
The scheme involved suppliers and buyers, and counted on the support of public officials, including a deputy dean and professors. They are accused of steering contracts to favoured companies in exchange for private interests.
The contracts were awarded to a national business group and its related companies, dedicated to importing, exporting and selling computer hardware and software. Other companies are accused of participating in the procurement procedures solely to create the appearance of genuine competition.
The conduct of the defendants caused an estimated damage to the EU of over €3.5 million. The fraud also increased the acquisition costs, allowing the supplier to obtain profits significantly higher than those normally achieved by distributors and systems integrators.
If found guilty, the defendants may face up to eight years’ imprisonment for fraud affecting the financial interests of the EU, up to five years’ imprisonment for unlawful participation in a business transaction by a public official and for receiving an undue advantage, and up to three years’ imprisonment for abuse of office.
In addition, one of the defendants, a public official, may also be barred from holding public office. Another defendant may be prohibited from serving as a director of private companies.
Earlier in this investigation, assets worth €1.3 million were frozen to compensate the estimated damage to the EU budget.
The investigation counted on the support of Portugal’s Judicial Police (PJ) – Regional Corruption Investigation Unit of the Northern Directorate.
All persons are presumed innocent until proven guilty by the competent Portuguese courts of law.
The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.
World Affairs Correspondent
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