EPPO Romania: Indicts 6 for €7M EU-Funded Tugboat Fraud

• The European Public Prosecutor's Office (EPPO) in Romania has indicted six defendants for alleged fraud related to two EU-funded tugboats.
• The project, valued at approximately €7 million, was financed under the 2014–2020 Large Infrastructure Operational Programme.
• Allegations include manipulating tender specifications to favor one company and accepting tugboats with a draught exceeding contractual limits.
• The fraud is estimated to have caused €7 million in damages to the EU budget, rendering the tugboats largely ineffective for their intended purpose.
• Defendants, including four public officials from AFDJ Galați, face potential imprisonment of 3 to 10.5 years if convicted.

The estimated €7 million in damages to the EU budget represents a direct depletion of funds intended for public benefit, impacting the collective resources of European taxpayers.

The European Public Prosecutor's Office (EPPO) in Cluj-Napoca, Romania, has formally indicted six parties in connection with an alleged €7 million fraud scheme concerning the procurement of two tugboats. Filed with the Iași Court on October 26, 2026, the charges target four public officials from the Lower Danube River Administration (AFDJ Galați), alongside an individual and a company, for their roles in the fraudulent acquisition of vessels intended for the Lower Danube. This significant case highlights alleged irregularities in the use of European Union funding for critical infrastructure.

The project, which secured approximately €7 million in EU funding through the 2014–2020 Large Infrastructure Operational Programme, aimed to acquire two multi-purpose, ice-class tugboats. These vessels were designated for essential river navigation tasks, including operation during periods of low water and providing assistance to distressed vessels. However, the tender process was allegedly compromised by the inclusion of technical specifications typically associated with seagoing vessels, despite the tugboats' intended use on inland waterways. This specific requirement is believed to have unduly narrowed the pool of eligible bidders, effectively favoring a single company.

Further compounding the alleged fraud, the tugboats delivered in 2021 reportedly possessed an actual draught of 2.6 meters. This measurement significantly exceeded the maximum draught of two meters stipulated in the project contract, a critical detail for safe navigation in shallow river conditions. Despite this clear deviation from contractual terms, the four public officials from AFDJ Galați are accused of accepting the non-compliant vessels and subsequently signing final acceptance reports that falsely affirmed the tugboats met all required technical specifications. The practical consequence of this discrepancy is that the tugboats can only be operated safely when water levels are sufficiently high along their designated route, severely limiting their utility on the Danube, particularly during the low-water periods they were specifically meant to address.

This indictment by the European Public Prosecutor's Office underscores its mandate as the independent public prosecution office of the European Union. The EPPO is specifically tasked with the investigation, prosecution, and judgment of crimes that affect the financial interests of the EU, ensuring accountability for the misuse of European funds. The charges brought before the Iași Court represent a direct effort to address alleged financial irregularities within an EU-funded project in Romania.

The alleged fraud is estimated to have inflicted approximately €7 million in damages directly upon the EU budget. This figure corresponds precisely to the total EU funding allocated for the tugboat procurement project, indicating a complete loss of the invested European resources due to the alleged scheme. The severity of these charges is reflected in the potential penalties: if found guilty by the competent Romanian courts of law, the defendants could face imprisonment terms ranging from three to ten and a half years.

It is important to note that, in line with legal principles, all individuals involved in this case are presumed innocent until their guilt is proven in a court of law. The EPPO's action in this case, focusing on the manipulation of technical specifications and the falsification of acceptance reports, highlights a critical area of vulnerability in large-scale infrastructure projects receiving EU support, emphasizing the need for stringent oversight and adherence to contractual obligations.

The alleged fraud surrounding the EPPO Romania EU-funded tugboat indictment carries significant implications beyond the immediate financial loss. The estimated €7 million in damages to the EU budget represents a direct depletion of funds intended for public benefit, impacting the collective resources of European taxpayers. More critically, the operational limitations imposed on the tugboats — designed to ensure safe passage and aid in emergencies on the Danube — undermine the very purpose of the investment, rendering the vessels largely ineffective for their intended function, especially during crucial low-water periods.

This case serves as a stark reminder of the vulnerabilities inherent in large-scale public procurement projects, particularly when they involve substantial European Union funding. The alleged manipulation of tender specifications to favor a specific bidder and the subsequent acceptance of non-compliant equipment demonstrate a systemic failure in oversight and adherence to contractual integrity. Such actions not only lead to financial waste but also compromise the strategic objectives of vital infrastructure initiatives.

The active prosecution by the European Public Prosecutor's Office in this matter signals a robust commitment to safeguarding the EU's financial interests and upholding the integrity of its funding programs. It sends a clear message to all entities involved in EU-funded projects, from public administrations to private companies, that fraud, especially concerning technical specifications and acceptance reports, will be rigorously investigated and pursued. This focus on accountability is crucial for maintaining public trust and ensuring that EU funds are utilized effectively and transparently for their intended purposes.

Compliance officers and legal counsel involved in EU-funded projects, particularly in infrastructure or procurement, should note the EPPO's active prosecution of fraud involving technical specifications and acceptance reports. This case highlights the need for rigorous due diligence and adherence to contractual terms to mitigate risks of financial irregularities and criminal charges.

Source: Information derived from European Public Prosecutor's Office reporting