Brussels/Prague - One billion euros a year. That is the total sum of money from various grants that the EU labels as "discrepancy" or even "fraud".
It amounts to more than 60 per cent of all allocated European funds. Last month, a Czech court started the biggest eurofraud trial in the country ever. Others are to follow.
EU suggests "europrosecutor"
The number of cases reported to the EU by individual member countries grew by more than 50 per cent compared to 2004. However, this number includes only disclosed and reported cases.
Although only courts are able to calculate the real financial impact, many politicians find the numbers alarming.
The EU is still looking for an efficient tool to fight the problem. The new reform treaty, recently agreed upon in Lisbon, establishes a new European public prosecutor office.
However, the implementation of the "europrosecutor" plan is even more difficult than the ratification of the recently failed European constitution.
The treaty contains a clause enabling a group of at least nine countries to return this proposal from the ministerial level back to the European Council negotiations, which would de facto torpedo it.
Eurofraud enacted in Slovakia
Therefore, individual states are seeking their own ways. The Czech Ministry of Justice suggests to include the "damage caused to the EU" offence in the new penal code bill, which is expected to be passed soon by the country's parliament.
Even the incorrect completion of forms needed to obtain European money by the applicant would be indictable, as well as false affidavits of being clear of debt to the state, or manipulations with the commercial register statement and/or criminal record statement.
Courts would now be free to try also those who failed to prevent such crimes. Perpetrators would face up to 12 years in prison.
Neighbouring Slovakia has the provision of damage caused to the EU's financial interests already enacted in its penal code.
Frauds going on, senator says
The number of court cases concerning the misuse of European money, which have so far been tried according to the old Czech law, is likely to increase. Senator Josef Novotný (SNK-ED) recently said in the press that the Ministry for Regional Development had not taken sufficient measures to prevent frauds from continuing.
He specifically brought up the construction of a cable centre in Bystřice nad Pernštejnem. The ministry, led by the then minister Jiří Čunek, supported it by resources appropriated for the tourism development, but the construction company, Novotný says, overpriced its costs by 400 per cent.
Revenue officers have already ordered the owner of the company to return the grant reaching 2 million Czech Crowns.
The ministry announced it planned to pick and review other apparently overpriced projects.
