European Court of Auditors flags suspected fraud in €755,000 Portugal 2020 project
The European Court of Auditors identified a suspected case of fraud involving Portugal 2020 funds, with European financing of €391,000. The case has been referred to the EPPO, which is already conducting an investigation.
Portuguese company under suspicion of fraud in Portugal 2020, case handed to European Prosecution Office
The European Court of Auditors (ECA) identified a suspected case of fraud involving European funds affecting a Portuguese company, in a project worth a total of €755,000 — of which €391,000 corresponds to European financing under the Portugal 2020 framework. The information is contained in the ECA's annual report, released this week, and was confirmed by the institution's Portuguese member, João Leão, at a press conference, according to eco.sapo.pt.
The case has already been reported to OLAF and the European Public Prosecutor's Office (EPPO), with the investigation now under the responsibility of the latter. João Leão highlighted the limitations regarding the detail that can be disclosed about specific cases, but clarified that it concerns "a particular company" and that the funds in question belong to Portugal 2020, not the RRF.
17 suspected fraud cases reported to OLAF in 2025
In total, the ECA reported 17 suspected cases of fraud involving European funds to OLAF in 2025, compared to 19 in the previous year. Seven were detected during the audit of 2024 expenditure, another seven as part of the audit of 2023 expenditure, and one in the context of an audit of the Instrument for Pre-Accession Assistance (IPA). Of the remaining two, one was reported by the service responsible for the Court's procurement and another by a third party.
By June 2026, OLAF had already opened five inquiries based on these reports. In parallel, the Court transmitted 12 of these cases to the European Public Prosecutor's Office, eight of which resulted in the opening of investigations.
Portugal "stands out neither positively nor negatively"
The ECA continues to have concerns about the "fragility of the management and control systems of national authorities", a weakness that João Leão said is common across several member states, including Portugal. "We have identified weaknesses" that repeat themselves, he stated.
When asked whether Portugal is on the right track in terms of combating fraud, the former Finance Minister responded that the country "stands out neither positively nor negatively". "It is one of the countries that appears from time to time. Last year there were no suspected cases of fraud, this year one appears again. It is not a country that stands out in combating fraud nor in the number of cases we identify", he concluded.
João Leão considered the changes introduced at European level to be positive, namely the creation of OLAF and, more recently, the European Public Prosecutor's Office. However, he warned that it is "absolutely decisive" that member states incorporate fraud prevention mechanisms in their national implementation plans. "It is a continuous effort that must also be undertaken by member states", he stressed.
Closure of anti-fraud think tank considered "natural"
Regarding the decision by the Attorney General of the Republic to close the working group dedicated to combating fraud in European funds, João Leão emphasised that it is "fundamental to ensure the continuity of prevention of crime associated with European funds", especially in the current context of the new multiannual financial framework, which replicates the milestones and targets model of the RRF.
Nevertheless, he described the decision as "natural", considering that "the functions that were in the working group will now be carried out by a specialised unit for European funds in the DCIAP".
Recovery and Resilience Mechanism: Portugal free from irregularities
The ECA's annual report also analyses the expenditure of the Recovery and Resilience Mechanism. In 2025, the European Commission made 37 subsidy payments to member states, associated with 697 milestones and all 342 targets. The Court examined 420 milestones and targets, concluding that 16 did not meet the conditions for payment and eligibility, relating to nine payments to nine different member states. João Leão specified that none of these concern Portugal.
Finally, the official warned that the Court will closely monitor the application of the concept of "substantial completion" — the mechanism that allows Brussels to accept work completed at 90% as satisfactorily fulfilled. "We will want to follow up to ensure it translates into actual implementation", he stated, emphasising that verification of the degree of completion is carried out by national entities.
Source: Google News PT — Crime (pt)