Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations
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Istanbul – 21 March 2005
Luc Schaerlaekens
Unit A2: Strategic Programming, Reports, ConsultativeCommitee, External Relations
Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations
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History
Structure
What is OLAF?
Operations
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OLAF’s history
Pre-1988, Investigations carried out byindividual services of the Commission ( DG VIand DG XXI )
In 1988, UCLAF was formed to co-ordinateinvestigations.
In 1995, these investigation units and UCLAF allmerged to make one investigation unit
Unit A.2 – Strategic Programming, Reports, Consultative Commitee, External Relations
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OLAF’s history
OLAF succeeded the Task Force for the Co-ordination ofthe Fight against Fraud (UCLAF) of the Commission, setup in 1988
OLAF was created on 1 June 1999, following theresignation of the Santer European Commission
OLAF is able, unlike UCLAF, to conductinvestigations within the European institutions
OLAF is an independent office
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OLAF
OLAF is:
An autonomous office in the European Commissionwhich carries out investigations and other measuresto protect the interests of the European Union
OLAF is a hybrid body - it is part of the Commissionbut it has administrative autonomy and a budgetset by the European Parliament
OLAF is not:
A police force
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Institutional status
Operational independence in the conduct ofinvestigations
Special position of the Director-General
AIPN
Protection against removal
Power to sue Commission
But OLAF is also a Commission service
Responsible for anti-fraud policy
Subject to Commission rules and procedures
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OLAF’s tasks
Three main areas:
1)Investigations and co-ordination
2)Intelligence
3)Development of anti-fraud policy
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OLAF’s Organisation chart
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Directorate A – Policy, Legislation& Legal affairs
Defines the overall anti-fraud strategy of theOffice
fraud-proofs legislation and drafts the requisitelegal instruments
handles follow-up activities relating to
recovery.
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Directorate C – Operational &Strategic Intelligence & IT
Gathers intelligence from operational activity which maythen be used for operational purposes eg special exercises
Gathers intelligence for strategic purposes to assess trendsand potential areas of illegal activity on the wider scale
Is responsible for matching technical aids to investigationswith the operational side.
IT infrastructure within OLAF and externally
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Directorate B - Investigations
Carries out administrative investigations bothinternally and externally
Co-ordinates investigation-related activitiesbetween the involved parties – eg on-the-spotchecks etc.
Consists of specialists and high-level experts intheir various fields from services used to handlingcomplex fraud cases eg Police, Customs, Lawyers,Anti-Corruption etc.
Is not empowered to carry out criminalinvestigations
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Investigations andcoordination
OLAF’s mandate for investigation
Per Regulation (EC) No 1073/1999 concerning investigationsconducted by OLAF:OLAF shall exercise the powers of investigation conferred on theCommission in order to step up the fight against fraud,corruption and any other illegal activity affecting the financialinterests of the European Community.
(According to Commission Decision 352/1999, OLAF should alsobe responsible for the protection of the Community’s non-financial interests from irregular acts likely to lead to penal oradministrative proceedings)
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Investigations andcoordination
OLAF has no judicial powers; it therefore conducts
Administrative investigations.
There are two main categories of investigation:
Internal investigations(within the European institutions)
External investigations(into individuals or entities outside the European institutions)
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Investigations andcoordination
Eight sectors in investigations and operations
1Internal investigations
2Eurostat task force
3External aid
4Direct expenditure
5Multi-agency investigations
6Structural actions
7Agriculture
8Customs
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Investigations andcoordination
How does a case come to OLAF?
Sources of initial information:
Informants
Whistleblowers
Witnesses
Anonymous sources
European institutions
Member states
Third countries
Strategic intelligence
The Free Phone
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Investigations andcoordination
What happens to a new case when it comes toOLAF?
Receipt of the documentation is registered.
The matter is allocated to one of the eight specialisedinvestigation sectors for preliminary review.
If the matter appears potentially relevant to OLAF, a casenumber is assigned.
An investigator is asked to evaluate the case.
The evaluator provides a report to the Executive Board.
The Board then designates the case in one of six types.
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Investigations andcoordination
Six types of case
1Internal case
2 External case
3Co-ordination case
4Criminal assistance case
5Monitoring case
6 Non-case
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Investigations andcoordination
OLAF’s powers
In external investigations:
To carry out unannounced on-the-spot inspections withinmember states, after informing the relevant authorities (Reg2186/95)
To demand information and assistance from the authoritiesof Member States (under the EC treaty and Reg 1073/99)
No power to interview individuals
All other information must be sought voluntarily
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Investigations andcoordination
OLAF’s powers
In internal investigations:
To have immediate and unannounced access to informationheld by European institutions
To demand explanations (at interview) from members ofEuropean institutions
To carry out unannounced on-the-spot inspections withinEuropean institutions
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Investigations andcoordination
OLAF has no judicial powers
When OLAF suspects that a criminal offence may have beencommitted, it must pass the case to the relevant judicialauthorities
OLAF has no disciplinary powers
When OLAF considers that a member of the EuropeanCommission may have committed irregularities falling shortof criminality, it passes the case to be investigated by IDOC,the Commission’s disciplinary authority
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Investigations andcoordination
How is an OLAF case closed?
The investigator produces a Final Case Report
On the basis of this, the Executive Board decides to close thecase.
Three possibilities -
Closed without follow-up
(No irregularities found)
Closed with follow-up
(A follow-up case is then opened)
Closed because follow-up completed
(The closure of the follow-up case)
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Investigations andcoordination
Types of follow-up
Disciplinary (OLAF Unit 0.4)
(Reference to IDOC)
Judicial (OLAF Unit 0.4)
(Reference to national authorities for criminal investigation)
Administrative (OLAF Unit A.3)
(Recommendations to reform procedures in the institution)
Legislative (OLAF Unit A.1)
(Recommendations for new legislation)
Recovery (OLAF Unit A.5)
(Proceedings to recover funds - civil action)
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OLAF’s Organisation chart
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Thank you for your attention
OLAF - European Anti-fraud Office
Rue Joseph II 30
B–1000 Brussels
Phone : +32 2 296 54 25