No 2 Internal rules for the handling of allegations of fraud and other irregularities and OLAF cases.pdf

Ref. Ares(2022)5427031 - 28/07/2022
EUROPEAN COMMISSION
DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT

DG AGRI
Internal rules for the handling of
allegations of fraud and other irregularities,
and of OLAF cases
(Version 3.1)

Applicable as from 16 October 2020

For agreement:

Wolfgang Burtscher
Director-General

V. 3.1 final

1.
PURPOSE AND SCOPE
The present rules define the internal procedures in DG AGRI related

to  the  handling  of  allegations  of  fraud  and  other  irregularities
committed  by  third  parties  in  any  domain  under  the  administrative
and budgetary competence of DG AGRI (external cases)1,


to  the  handling  of  allegations  of  facts  linked  to  the  performance  of
professional activities which may constitute a breach of obligations by
officials  and  other  staff  of  DG  AGRI  likely  to  lead  to  disciplinary  or
criminal proceedings (internal cases) and


to the handling of external and internal OLAF cases.

They complement and detail the provisions of

the  Communication  of  the  Commission  on  the  division  of  the
responsibilities  between  OLAF  and  the  AODs  in  the  Commission
concerning  the  financial  follow-up  of  irregularities  in  the  domain  of
Community  expenditure  under  shared  management  in  the
agricultural and structural actions area2,


the Commission’s Anti-Fraud Strategy 2019 (CAFS 2019)3,


the  Administrative  Arrangements  on  Co-operation  and  a  Timely
Exchange of Information between the European Commission and the
European Anti-Fraud Office4 and


the DG AGRI Anti-Fraud Strategy (AGRI AFS) Version 4.05.
They repeal the instructions laid down in the note of 9.2.2005 (D(2005)2364) and
modify the instructions laid down in the note of 15.9.2009 (D(2009)7803) on the
follow-up  of  OLAF-recommendations  by  Directorate  AGRI.J.  In  relation  to
internal  cases,  they  repeal  the  instructions  laid  down  in  the  note  of  15.10.2012
(D(2012)1298473).

1 It does not concern administrative errors committed by the relevant authorities in the Member States.
2 C(2007)5709
3 COM(2019)196 final
4 Ares(2018)6222271 – 04/12/2018
5 FN ARES XXX

4
V. 3.1 Final

2.
ACTORS CONCERNED
The  implementation  of  the  AGRI  AFS  is  a  joint  responsibility  of  all  services  in
the  DG,  but  the  following  actors  play  key  roles  in  the  procedures  addressed  by
this document:

AGRI  Anti-Fraud  Correspondent  (AFC):  In  its  function  of
coordinating  the  AGRI  AFS,  the  AFC  shall  receive  and  evaluate  all
incoming  information,  including  from  whistle-blowers,  potentially
relating  to  external  and  internal  cases  as  described  above,  and
coordinate external and internal cases with OLAF and the competent
services of the Commission and of DG AGRI. In addition, the AFC will
co-ordinate  and  oversee  the  follow-up  of  OLAF  recommendations
following investigations.


Directors in DG AGRI: They are the contact points for the AFC; they
ensure  that  all  relevant  information  in  the  area  of  fraud  and  other
irregularities  is  provided  to  the  AFC  and  that  the  results  of  external
cases  are,  where  applicable,  correctly  followed  up  in  their
directorates.  Directors  may  delegate  this  task  in  their  respective
directorate and communicate their choice to the AFC.


Directorate H “Assurance and audit”: In the context of its mission
to  provide  reasonable  assurance  on  the  CAP  expenditure  in  shared
management and to perform the financial clearance of accounts and
related procedures, Directorate H ensures the appropriate follow-up
of  recommendations  made  by  OLAF  where  the  recommendations
could lead to the application of a financial correction.. Directorate H
plays a central role in monitoring the establishment of amounts due
by    the  paying  agencies  in  the  MS  and  following  up  recoveries  of
amounts  fraudulently  or  irregularly  claimed  by  beneficiaries  in  the
context of the clearance of accounts (unit AGRI.H.5).


Directorate I “Legal, institutional and procedural matters”: In its
competence  to  deal  with  infringements,  unit  AGRI.I.3  shall  refer  all
incoming information potentially relating to external fraud and other
irregularities  to  the  AFC.  In  case  of  legal  questions  related  to
agricultural law, Unit AGRI.I.1 should be consulted.


Authorising  Officers  by  Sub-delegation  (AOSD):  Shared  and
indirect management: Once the Commission decision on the refusal of
expenditure has been adopted6, the competent AOSDs are responsible
for  the  implementation  of  the  financial  corrections  at  programme

6  Financial  clearance:  Art.  51  of  R(EU)1306/2013,  Art.  12  of  Commission  Delegated  R(EU)907/2014;
conformity  clearance:  Art.  52  of  R(EU)1306/2013,  Art.  12  (3)  of  Commission  Delegated
R(EC)907/2014/2006

5
V. 3.1 Final

level7. Direct management: The competent AOSD for the area of direct
management  concerned  is  responsible  for  issuing  the  relevant
recovery orders.


Directorate  R  “Resources”:  In  relation  to  internal  cases,  the  HR
Business  Correspondent  in  unit  AGRI.R.5  together  with  the  AMC2
shall  enact,  upon  instruction  from  or  with  the  agreement  of  the
Director-General,
the
appropriate
precautionary
measures
concerning the AGRI staff member subject of  allegations linked to the
performance  of  professional  activities  which  may  constitute  a  breach  of
obligations  by  officials  and  other  staff  of  DG  AGRI  likely  to  lead  to
disciplinary or criminal proceedings.
3.
WORKFLOW CONCERNING ALLEGATIONS OF FRAUD AND OTHER
IRREGULARITIES IN EXTERNAL CASES
3.1.  Communication of allegations of external fraud within DG AGRI
3.1.1.  Incoming allegations from third parties
Any  service  and  any  staff  member  of  DG  AGRI  receiving
written  or  oral  information  containing  allegations  of  fraud  or
another  irregularity  shall  refer  this  information  to  the  AFC
without delay.
Where  the  AFC  has  directly  received  allegations  of  a
potential  case  of  fraud  or  another  irregularity  from  a  third
party  in  writing,  the  AFC  shall  use  this  information  for  a
possible  transmission  to  OLAF.  If  the  AFC  has  received  the
information  from  a  third  party  orally,  the  AFC  will  lay  the
information down in detailed note. The note shall explain the
circumstances under which the information was received, the
contents  of  the  information,  the  identity  of  the  informant
where its disclosure has been agreed and the contact details of
the informant.
3.1.2.  Elements of possible fraud detected in an audit
The  same  as  outlined  above  applies  to  red  flags  for  fraud  or
fraud  indicators  identified  in  the  course  of  an  audit
undertaken by auditors of Directorate H8. They shall refer such
elements to the AFC by sending of a copy of the audit report or
a generic note including annexes as appropriate.

7 Vade-mecum on the relations between Directorates J, E, F, G and H; point 3.6.
8 IIA Standard 1210 applies in these situations.

6
V. 3.1 Final

In  the  context  of  the  audit,  the  auditors  shall  abstain  from
undertaking  investigative  actions,  in  particular  from
contacting  third  parties  or  potential  witnesses  in  order  to
clarify elements of possible fraud detected9.
3.2.  Referral of allegations of fraud or another irregularity in external
cases from DG AGRI to OLAF
3.2.1.  Registration of incoming information
Upon reception of allegations of fraud or another irregularity
as an external case, the AFC shall register the information in
a central database10 identifying the source of information, the
Member State concerned, the contents of the allegation, and its
date of reception.
3.2.2.  Analysis of incoming information
The  AFC  shall  proceed  to  an  analysis  of  the  information
received  in  order  to  determine  if  its  contents  contains
elements  that  fall  into  the  investigative  competence  of  OLAF.
The  process  of  analysis  of  any  information  received  shall  be
assisted - upon request of the AFC – by the unit competent for
the matter.
Where the contents of the information received suggests that
the  investigative  competence  of  OLAF  appears  to  be
established  or  cannot  be  clearly  excluded,  the  AFC  shall
refer the information to OLAF.
The  referral  to  OLAF  shall  be  done  by  a  registered
communication to the OLAF Single-Point-of-Entry11, which
–  as  the  case  may  require  –  will  provide  any  useful  further
information  to  OLAF  in  order  to  evaluate  the  allegations  and
contribute  to  its  decision  whether  or  not  to  open  an
investigation or a coordination case.
As  appropriate,  a  copy of  the  note  shall be  made  available  to
the unit(s) in DG AGRI concerned by the matter.

9  External  audits  on  the  proper  functioning  of  the  control  system  for  organics  and  for  agricultural
quality products are carried out by the Food and Veterinary Office in DG  SANTE. Unit AGRI.B.4
and B.3 will refer to the AFC any elements of possible fraud or irregularities gained in the course
of such audits.
10 https://myintracomm-collab.ec.europa.eu/networks/AGRIAF/SitePages/Home.aspx
11 xxxxxxxxxxxx@xx.xxxxxx.xx via Areslook

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V. 3.1 Final

Where  the  information  received  contains  no  element  to
suggest  fraud  or  any  other  irregularity  affecting  the
financial interests of the EU and OLAF therefore has manifestly
no  investigative  competence,  the  AFC  shall  abstain  from  a
referral  to  OLAF.  The  service  or  staff  having  provided  the
information shall be informed hereof.
However,  if  the  information  received  contains  elements  that
merit  the  attention  of  DG  AGRI,  the  AFC  shall  transmit  the
information to the competent unit.
3.2.3.  Communication with the sender of allegations
Any  service  having  received  written  or  oral  information
containing  allegations  of  a  potential  case  of  fraud  or  another
irregularity shall not inform the sender whether or not his
allegations  shall  be  referred  to  OLAF  without  prior
consultation  of  the  AFC.  The  AFC  will  inform  the  service  of
his views in writing.
Depending on the decision of the AFC whether or not to refer
the allegations to OLAF, the responsibility for communication
with  the  sender  regarding  the  follow-up  given  to  his
correspondence lies with the unit in charge of the substance of
the  file  (which  may  not  be  the  unit  that  had  received  the
information initially).
3.2.3.1.
Referral to OLAF
If the allegations shall be referred to OLAF, it will be
the  AFC  or  the  unit  in  DG  AGRI  in  agreement  with
the  AFC  having  received  the  allegations  to  inform
the sender of this decision.
3.2.3.2.
Non-referral to OLAF
Depending  on  the  contents  of  the  allegations
(management  or  control  problems  of  a  systemic
nature; non-financial infringements; management of
market  measures  or  direct  payment  schemes  or  of
rural  development  programmes,  etc.),  the  service
competent  for  the  subject  matter  in  question  shall
respond to the sender in accordance with its normal
practise (directly or through the AFC).
3.3.  Special provisions in relation to allegations of food fraud
Allegations  of  food  fraud  can  concern  in  particular  the  following
scenarios:

8
V. 3.1 Final


Non-organic  products  are  falsely  put  on  the  market  as  organic.
Two different cases are possible:

the producer or processor receives EAGF or EAFRD funds; or the
producer  or  processor  or  other  operator  (wholesaler,  retailer,
trader) does not receive EAGF or EAFRD funds;

Fraud and/or other irregularities in the activities carried out by the
authorities or bodies certifying and/or inspecting organic operators.

Abuse of Quality Denominations (Protected Designations of Origin
(PDOs),  Protected  Geographical
Indications
(PGIs),  and
Traditional Specialties Guaranteed (TSGs)).
3.3.1.  Allegations  that  non-organic  products  are  falsely  put  on  the
market as organic
Such  allegations  shall  be  sent  to  unit  AGRI.B.4  and  to  the  AFC.
When such allegations come from a Member State, Unit AGRI.B.4
will  be  informed  via  the  Organic  Farming  Information  System
(OFIS).
The  AFC  will verify  with the help  of unit AGRI.H.1 whether the
alleged  perpetrator  has  received  or  receives  EAGF  or  EAFRD
funds for organic farming. Should the perpetrator have received or
receive such EAGF or EAFRD funding, the AFC will transfer the
allegations to OLAF.
Independently  from  EU  funds  being  involved  in  the  case,  unit
AGRI.B.4.
1)  will  systematically  address  the  competent  authorities  in  the
Member State(s) concerned to request information and follow-up,
2)  will  consider  informing  the  Committee  on  Organic  Production
(COP) as appropriate,
3)  will  liaise  with  unit  AGRI.I.3:  Enforcement  of  legislation,
infringements, in the context of a possible infringement against EU
law as appropriate.
At  the  same  time,  Unit  AGRI.B.4  will  decide  on  a  case-by-case
basis  to  inform  unit  SANTE.G.5  for  a  possible  transfer  of  the
information to the national food fraud contact points.
3.3.2.  Allegations  of  fraud  and  irregularities  in  the  activities  by  the
authorities  or  bodies  certifying  and/or  inspecting  organic
operators
Such allegations shall be sent  to  unit AGRI.B.4  –  via OFIS when
coming from a Member State - and to the AFC.

9
V. 3.1 Final

Unit  AGRI.B.4  will  address  the  competent  authorities  in  the
Member  State(s)  or  Third  Country(ies)  concerned  or,  in  case  of
control bodies in Third Countries that the Commission recognised
as equivalent for imports of organic products in the EU, the control
body  and/or  the  accreditation  body  to  request  information  and
follow-up as appropriate.
For control bodies operating in non equivalent third countries, Unit
AGRI.B.4  will  assess  the  allegation  on  a  case  by  case  basis  and
possibly take measures against the operator.
3.3.3.  Abuse  of  Quality  Denominations  (Protected  Designations  of
Origin  (PDOs),  Protected  Geographical  Indications  (PGIs),  and
Traditional Specialties Guaranteed (TSGs))
The  fraudulent  abuse  of  Quality  Denominations  can  take  the
following forms:
  At producer level:
A  producer  benefiting  from  a  Quality  Denomination  does  not
respect the approved product specification.
  At market level:
A  producer  or  a  vendor  uses  a  Quality  Denomination  without
entitlement.
Such  allegations  shall  be  sent  to  unit  AGRI.B.3  and  to  the  AFC.
The AFC will verify with the help of unit AGRI.H.1 whether  – in
case a producer benefiting form a Quality Denomination does not
respect  the  product  specification  -  the  alleged  perpetrator  has
received  or  receives  EAFRD  funds  towards  implementing  the
quality scheme. Should this be the case, the matter shall be referred
to OLAF.
Independently  from  EU  funds  being  involved  in  the  case,  unit
AGRI.B.3 will assess if information needs to be addressed for the
attention  of  the  competent  authorities  in  the  Member  State(s)
concerned.
Unit AGRI.B.3 will decide, on a case-to-case basis, if information
shall be addressed for the attention of the competent authorities in
the  Member  State(s)  concerned  via  the  Administrative  Assistance
and Cooperation System (AAC) managed by DG SANTE. In such
case, unit SANTE.G.5 will be contacted.
3.3.4.  Other cases of food fraud
Allegations  concerning  other  cases  of  food  fraud  shall  be
communicated by the AFC to unit SANTE.G.5 and the concerned
market unit in DG AGRI.

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V. 3.1 Final

4.
WORKFLOW CONCERNING ALLEGATIONS LINKED TO THE PERFORMANCE OF
PROFESSIONAL  ACTIVITIES  WHICH  MAY  CONSTITUTE  A  BREACH  OF
OBLIGATIONS  BY  OFFICIALS  AND  OTHER  STAFF  OF  DG  AGRI12  LIKELY  TO
LEAD TO DISCIPLINARY OR CRIMINAL PROCEEDINGS (INTERNAL CASES)
4.1.  Reporting of allegations in internal cases
The  communication  of  allegations  of  internal  illegal  activities  is  a
statutory  obligation  for  staff  members.  Article  22a  of  the  Staff
Regulations stipulates the following:

1.  Any  official  who,  in  the  course  of  or  in  connection  with  the
performance of his duties, becomes aware of facts which  give rise to a
presumption of the existence of possible illegal activity, including fraud
or  corruption,  detrimental  to  the  interests  of  the  Union,  or  of  conduct
relating to the discharge of professional duties which may constitute a
serious  failure  to  comply  with  the  obligations  of  officials  of  the  Union,
shall without delay inform either his immediate superior or his Director-
General or, if he considers it useful, the Secretary-General, or the persons
in equivalent positions, or the European Anti-Fraud Office (OLAF) direct.
Information  mentioned  in  the  first  subparagraph  shall  be  given  in
writing.
This paragraph shall also apply in the event of serious failure to comply
with  a  similar  obligation on  the  part  of  a  Member of  an  institution or
any other person in the service of or carrying out work for an institution.
2. Any official receiving the information referred to in paragraph 1 shall
without delay transmit to OLAF any evidence of which he is aware from
which the existence of the irregularities referred to in paragraph 1 may
be presumed.
3.  An  official  shall  not  suffer  any  prejudicial  effects  on  the  part  of  the
institution as a result of having communicated the information referred
to  in  paragraphs  1  and  2,  provided  that  he  acted  reasonably  and
honestly.
4. Paragraphs 1 to 3 shall not apply to documents, deeds, reports, notes
or  information  in  any  form  whatsoever  held  for  the  purposes  of,  or
created or disclosed to the official in the course of, proceedings in legal
cases, whether pending or closed.
Where  a  staff  member  of  DG  AGRI  opts  to  report  allegations  of
internal illegal activities inside DG AGRI, he may also choose to report

12 Officials, temporary and contractual agents, Seconded National Experts, National Experts in Professional
Training, trainees, intérimaires.

11
V. 3.1 Final

to  the  AFC.  As  a  rule,  this  report  shall  be  in  writing  and  be
accompanied by supporting documents where applicable.
Should the staff member prefer to report allegations of internal illegal
activities orally, he shall be heard by the AFC, who will draft a record
of the staff member's statements, the agreed version of which the staff
member  shall  sign.  The  AFC  will  inform  the  Director-General  of  the
allegations without delay.
If a staff member has reported allegations of internal illegal activities
to his immediate superior, the superior shall immediately inform the
Director-General or the AFC, who in his turn will inform the Director-
General.
For  the  sake  of  confidentiality  and  contrary  to  external  cases,  no
information  on  internal  cases  will  be  registered  in  an  electronic
database.  Case  files  will  be  kept  in  paper  form  only  and  kept  under
lock and key in the Director-General's or the AFC’s archives.
4.2.  Analysis of the contents of the allegations
Following reception of  the allegations, the AFC will proceed without
delay to an analysis of the contents of the allegations with a view to
determine if they shall be sent to OLAF or – where the allegations only
point  to  the  infringement  of  statutory  obligations  -  to  the
Investigation  and  Disciplinary  Office  of  the  Commission  (IDOC)  or
whether the allegations do not point at any possible wrongdoing.
The  AFC  will  draft  a  reasoned  proposal  to  the  Director-General  and
seek his approval on the proposed action.
4.3.  Transmission of allegations to OLAF or IDOC
On  the  basis  of  a  corresponding  agreement  by  the  Director-General,
the AFC drafts the report to refer the allegations to OLAF or IDOC. The
report shall be signed by the Director-General or his deputy.
The transmission report and all other subsequent correspondence in
the matter shall be registered in ARES with the appropriate security
label  ('OLAF  operations';  'Staff  matter',  etc.)  under  the  heading
09.01.06.081.011.211.
4.4.  Information of the staff member concerned
The staff member concerned by the allegations transmitted to OLAF
or IDOC shall not be informed about the allegations against him or the
referral  to  OLAF  or  IDOC  without  the  written  agreement  from  the
office  concerned.  The  same  applies  to  precautionary  measures
applied to the staff member.

12
V. 3.1 Final

4.5.  Opening of an internal investigation by OLAF or IDOC
Following the opening of an internal investigation by OLAF or IDOC,
the  AFC  shall  be  in  charge  of  satisfying  any  cooperation  requests
(transmission of documents or other information, etc.) from either of
the offices.
Where,  following  the  opening  of  an  internal  investigation,  OLAF  or
IDOC  request  that  conservatory  measures  be  taken  against  the  staff
member  concerned,  the  Director-General  or  the  AFC  shall  relay  this
request immediately to the Director of Directorate AGRI.R for further
handling.
4.6.  Closure of an internal investigation by OLAF or IDOC
4.6.1.  Closure with follow-up by OLAF
OLAF may close the internal case with judicial, disciplinary or
administrative  follow-up.  In  the  event  of  a  judicial  follow-up,
OLAF will refer the matter to the competent judicial authority.
In  the  event  of  disciplinary  follow-up,  OLAF  will  refer  the
matter  to  IDOC.  Except  when  it  is  called  upon  to  provide
specific  assistance  in  these  modes  of  follow-up,  DG  AGRI  has
no other specific responsibilities in this phase.
4.6.2.  Closure with follow-up by IDOC
IDOC  may  recommend  to  the  Disciplinary  Authority  to  initiate
disciplinary  proceedings  against  the  staff  member  concerned.
During  the  disciplinary  procedure  DG  AGRI  has  no  specific
responsibilities other than providing assistance as requested.
Should  the  Disciplinary  Authority  validly  impose  a  disciplinary
sanction  against  the  staff  member,  the  implementation  of  the
sanction  is  under  the  responsibility  of  the  Appointing  Authority.
DG AGRI will contribute to the implementation of the sanction as
requested.
4.7.  Dismissal  of  the  allegations  by  OLAF  or  IDOC  or  closure  of  the
investigation without follow-up
Where  OLAF  or  IDOC  dismiss  the  allegations  and  do  not  open  an
investigation,  DG  AGRI  as  a  rule  need  not  follow  up  the  matter  any
further. It shall be decided on a case to case basis if the staff member
concerned be informed about the matter.
The paper file concerned as mentioned under point 4.1 above will be
deleted.

13
V. 3.1 Final

5.
WORKFLOW  CONCERNING  CASE-RELATED  DOCUMENTS  FROM  OLAF  IN
EXTERNAL CASES
5.1.  Reception of OLAF documents
Final  Reports  of  OLAF  are  addressed  to  the  Director-General  of  DG
AGRI with a copy to the AFC. They are in a first step scrutinised by the
Director-Generals  Assistant  responsible  for  Directorates  A-B-E-I-H
and the AFC in order to determine if the report has to be brought to
the attention of the Director-General. In the absence of the Assistant
responsible for Directorates A-B-E-I-H for three consecutive working
days the  reports will be scrutinised by the second Assistant and the
AFC, and in the exceptional case of an absence of both Assistants by
the  AFC  alone.  Should  both  Assistants  and  the  AFC  be  absent,  the
OLAF  report  shall  be  seen  by  the  Director-General  or  his  deputy  to
ensure that immediate action is taken where necessary.
All other case-related correspondence shall be addressed by OLAF
to the AFC directly who is responsible for the attribution of the piece
of correspondence to the AGRI directorates/units concerned.
5.2.  Contacts with OLAF
Where  OLAF  requests  information  from  DG  AGRI,  OLAF  usually
does so by addressing its request to the AFC. The AFC will then refer
the  request  to  the  unit  concerned.  Occasionally,  however,  OLAF
addresses a unit in AGRI directly, sometimes without copying the AFC.
In all cases, the  AGRI units concerned shall  charge the AFC with the
answer to OLAF.
5.3.  Dismissal of allegations by OLAF
Where  OLAF  dismisses  a  case  because  the  allegations  contain  no
elements  suggesting  fraud  or  any  other  irregularity  (so-called
"non-cases"), DG AGRI in principle shall take no further action.
DG AGRI has no competence to undertake any investigative activities.
DG AGRI - in the areas of shared management - focuses on systems
audits  and  not  on  the  audit  of  individual  transactions.  However,  the
competent units in DG AGRI shall determine if a matter dismissed by
OLAF  ought  to  be  included  in  the  risk  analysis,  be  brought  to  the
attention  of  the  competent  authority/coordinating  body/paying
agency or whether the matter warrants the opening of an enquiry by
the competent unit in AGRI.H.
In the area of direct management, it shall equally be assessed if the
matter  ought  to  be  included  in  the  risk  analysis  or  brought  to  the
attention of the competent unit.

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V. 3.1 Final

Where  OLAF  has  dismissed  a  case  suggesting  that  DG  AGRI  should
follow up the allegations, the AFC shall – where appropriate - report
to OLAF on the eventual action taken.
5.4.  Handling of Final Reports from OLAF
Following reception of a Final Report of OLAF, the AFC shall refer the
report to the AGRI directorates/units concerned for information.
5.4.1.  Final Report without recommendations
Where  OLAF  has  closed  a  case  for  follow-up  by  DG  AGRI,  the
report  will  be  disseminated  by  the  AFC  for  information
purposes on a need-to-know basis.
However,  the  fact  that  OLAF  has  not  made  recommendations
for follow-up by DG AGRI does not preclude action by DG AGRI
in  relation  to  the  facts  reported  by  OLAF.  DG  AGRI  is  in
particular not hindered to open an enquiry into the matter or –
in direct management – to take any other appropriate action.

5.4.2.  Final Report with recommendations
Where  OLAF  has  closed  a  case  concerning  shared  and
indirect  management  with  recommendations,  namely
recommending  recoveries  of  fraudulently  or  otherwise
irregularly obtained or spent amounts of money, the AFC shall
transmit the report to the thematic unit in DG AGRI concerned
(e.g. geographical unit for rural development, market unit, etc.)
as  well  as  to  unit  AGRI.H.1,  unit  AGRI.H.5  and  the  thematic
audit  unit  concerned.  The  directors  will  be  in  copy  of  the
transmission.  In  cases  concerning  direct  management  the
report will be referred to the competent AOSD for follow-up13.
The units in reception of the report and the AFC will decide on
the further handling of the report.
There are 3 possible outcomes of this consultation:
1.  The  report  shall  be  transmitted  to  the  Member  State14
concerned  by  the  report  in  order  to  evaluate  the
recommendation  against  the  evidence  provided  by  OLAF
and own evidence, and against EU legislation and national

13 The AOSD remains responsible to report to the EWS-officer of DG AGRI in all relevant cases.
14 Or the candidate country in case of IPARD.

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V. 3.1 Final

law,  and  to  proceed  to  recovery  of  the  aid  from  the  final
beneficiary as appropriate. This is by experience the most
frequent outcome.

2.  Instead  of  transmitting  the  report  to the  Member  State  as
under 1, Directorate AGRI.H opens a conformity procedure
to follow up the case and may in this context also transmit
the OLAF report to the Member State concerned. This will
be a more exceptional outcome.

3.  If  the  report  and  its  recommendation(s)  to  DG  AGRI  are
inconclusive, DG AGRI declines to implement it. The report
is  either  not  transmitted  to  the  Member  State  at  all  or
transmitted for information only.

In  the  event  that  the  consultation  in  house  results  in  the
agreement  to  refer  the  OLAF  report  to  the  Member  State  for
follow-up, the AFC will draft the transmission note and have it
translated  into  the  national  language  of  the  Member  State
concerned.  The  note  will  be  registered  in  ARES  with  all
consulted  units/directorates  in  visa.  The  transmission  note
will be signed by the Director-General.
In  order  to  ensure  that  the  OLAF  recommendation  will  be
properly implemented by the authorities in the Member State
concerned,  the  OLAF  Final  Report  will  be  transmitted  in  its
original form as received by OLAF and in a translation into the
relevant  national  language.  If  OLAF  has  had  its  Final  Report
translated (e.g. because OLAF transmits the report to national
judicial authorities), that translation will be transmitted to the
Member  State.  Otherwise  the  AFC  will  launch  a  translation
request.  Once  the  translation  has  been  received,  it  is  sent  to
OLAF for endorsement before transmission.
The  Member  State  will  be  given  a  deadline  to  report  on  the
implementation  of  the  OLAF  recommendation  of  maximum  6
months  from  the  reception  of  the  transmission  note.  Should
the Member State enact recovery from the final beneficiary, it
is  requested  to  communicate  the  registration  number  in  the
debtors’  ledger/Annex  II  table  of  Commission  Implementing
Regulation  (EU)  908/2014  and  in  the  Irregularities
Management  System  (IMS).  Should  the  Member  State  enact
recovery  for  a  lesser  amount  than  recommended  by  OLAF  or
not enact recovery at all, it is requested to justify this decision
so  that  DG  AGRI  can  take  the  matter  up  with  OLAF  as
appropriate.
The AFC is in charge of supervising the deadline and sending a
reminder to the Member State if necessary, with an additional

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V. 3.1 Final

deadline  of  two  months.  In  case  of  repeated  inaction  by  the
Member State, the AFC will inform Directorate AGRI.H in order
to allow for an evaluation of a possible conformity procedure.
In  the  event  that  the  consultation  in  house  results  in  the
agreement  to  open  a  conformity  procedure,  the  unit
responsible  in  Directorate  H  will  launch  the  conformity
procedure according to the applicable rules and will transmit
the OLAF report to the Member State within this procedure.
In  the  event  that  the  consultation  in  house  results  in  the
agreement not to act upon the OLAF report, the AFC will draft
the corresponding note to the Director-General of OLAF and all
consulted units/directorates will be in visa in ARES. The note
will be signed by the Director-General. The AFC will also draft
a transmission note to the Member State in case the report is
to  be  sent  there  for  information  only.  The  procedure  is  the
same as above (but obviously without a deadline, etc.).
5.4.3.  Debt management by Directorate H
The  numbers  under  which  a  debt  is  recorded  in  the  debtors’
ledger/Annex II to Commission Implementing Regulation (EU)
908/2014  are  communicated  by  the  AFS  to  Unit  AGRI.H.5,
which will annually check recovery progress in the context of
the  financial  clearing  if  OLAF  requests  follow-up  information
on the specific case.
5.4.4.  OLAF final report suggests the existence of systemic problems
If  facts  reported  in  an  OLAF  Final  Case  Report  –  with  or
without  specific  recommendations  -,  suggest  the  existence  of
systemic  problems  in  the  Member  State's  CAP  management
and  control  systems,  the  competent  conformity  unit  in
Directorate AGRI.H shall, as appropriate,

take  the  information  into  account  in  its  contribution  to
the  Directorate's  central  risk  analysis,  the  risk
assessment  and  thereby  in  the  multiannual  audit
planning,

raise  the  matter  with  the  national  authorities  in  the
context of any enquiry which has been scheduled for the
paying agency and the aid scheme concerned, or, where
such an enquiry has not been scheduled,

submit  the  case  to  Director  AGRI.H  for  a  decision
whether  to  open  a  specific  enquiry  (desk  audit  or
mission)  or  to  take  any  other  appropriate  follow-up
action.

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V. 3.1 Final

For  any  of  the  alternatives  above,  Directorate  AGRI.H  shall
inform the AFC of the action undertaken.
Where the case so requires, the operational directorates of DG
AGRI concerned will also be informed by Directorate AGRI.H
so  as  to  assess  the  necessity  to  amend  the  programme
concerned  or  the  legislation  applicable  to  the  domain
concerned.
5.5.  Recommendations for conservative/preventive measures by OLAF
before issuing a final report
In  exceptional  cases,  OLAF  recommends  taking  preventive/
conservative  measures  like  the  suspension  of  payments  to  a
beneficiary  before  the  investigation  is  closed  and  a  final  report  and
recommendation(s) are issued.
Such  recommendations  by  OLAF  shall  be  assessed  by  the  AFC,
Directorate  AGRI.H  and  the  thematich  directorate  in  DG  AGRI
concerned.  Unless  the  OLAF  recommendation  is  manifestly
unfounded – in which case DG AGRI will inform OLAF accordingly in
writing -, the recommendation shall be transmitted to the competent
body in the Member State concerned in order to enact the appropriate
measures.
In event the Member State does not enact the measure recommended
by OLAF or another appropriate follow-up and DG AGRI assess this as
a  lack  of  due  diligence,  Directorate  AGRI.H  may  decide  to  open  a
conformity procedure into the matter.
6.
REPORTING BY THE AFC
6.1
Reporting to the Director-General and Directorate AGRI.R
The  AFC  shall  report  to  the  Director-General  and  to  the
Director  R  on  the  implementation  of  the  Anti-fraud  Strategy
and on OLAF cases for any year n by 31  March n+1. The AFC
will equally contribute to AGRI management reports.
6.2
Reporting to OLAF
The  AFC  shall  report  to  OLAF  on  the  implementation  of  the
Office's recommendations to DG AGRI at OLAF’s requests.

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V. 3.1 Final

7.
OLAF CASE DATABASE
As  from  1  August  2013,  a  database  for  all  OLAF  cases  is  kept  as  a
collaborative workspace under Sharepoint15. It contains status descriptions
of  all  incoming  denunciations  and  all  OLAF  cases  including  information  on
the follow-up given to the OLAF recommendations.
Read-only  access  will  be  given  to  colleagues  on  a  need-to-know  basis  and
editor's  access  will  be  given  to  colleagues  having  to  report  on
implementation of OLAF recommendations.


15 https://myintracomm-collab.ec.europa.eu/networks/AGRIAF/SitePages/Home.aspx

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V. 3.1 Final

Annex I - Register of internal cases (model)

Data
filled
in
by/date
Name of staff

member concerned
AGRI unit

Date of reception of

the allegations
Sender of the

allegations
Contents of the

allegations

Director-General

informed on
Director Resources

informed on
Head of Unit HR

informed on
Information sent to

OLAF/IDOC on
Case reference

OLAF/IDOC
Investigation opened

or case dismissed
Precautionary

measures

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V. 3.1 Final

Requests for

additional information
from AGRI

Request satisfied –

how and when

Result of

OLAF/IDOC
investigation

Follow-up by AGRI

21
V. 3.1 Final

Document Management
Documents are filed in the Directorate R filing plan under headings 09.01.06.071,
09.01.06.08, 09.01.06.081.011 and9.01.06.09.02.
Responsible for the Procedure
Peter Baader, AGRI.R, Gianluca Frinzi, AGRI.H.1
Documentation updated on:
09/02/2020

End of document

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V. 3.1 Final