EU prosecutors launch probe into Romanian agencies’ fraudulent purchase of tugs

The European Public Prosecutor’s Office (EPPO), the European Union’s independent public prosecution office, is leading 12 searches in an investigation against the officials of two Romanian government agencies in connection with suspected fraud relating to the procurement of two new river tugs.

Three searches took place late last month in three public institutions – one in Galați County and two in Constanța County. Another seven searches were conducted at the homes of public officials of the Galați Lower Danube River Administration (Administratia Fluvială a Dunării de Jos Galati; AFDJ) and the Romanian Naval Authority (Autoritatea Navală Română; ANR), and two took place at private companies.

According to the evidence gathered in the investigation so far, public officials of the AFDJ, in their capacity as its representatives, obtained EU funding from the Large Infrastructure Operational Programme (POIM) for the purchase of two multi-purpose tugs. This was the result of a public procurement contract launched in September 2019, for a total value of RON35.14 million (US$7.62 million).

It is alleged that the public officials submitted inaccurate documents in order to finance the project. The EPPO said that, although the tugs were solely intended for river navigation, the suspects drew up the tendering specifications on the basis of the more restrictive technical characteristics and construction requirements specific to seagoing vessels.

As a result, the type of vessels falling within the criteria of the tender specifications was very limited, which prevented other economic operators from participating in the tendering process, and ultimately favoured only one applicant.

Following the finalisation of the contract with the supplier company, the two tugs were delivered in July 2021 with a higher nautical draught than originally provided for in the tender specifications and the purchase contract. This made them exclusively suited for the Maritime Danube, where the depth of the water permits navigation with a higher draught – therefore rendering the two vessels unusable for river navigation, because they could not transit through the full reservoirs of the Danube river sector.

The EPPO said this caused a damage to the EU budget amounting to approximately €7 million (US$7.55 million).