This report outlines a strategy for managing fraud and corruption risks related to
the European Structural and Investment (ESI) Funds in the Slovak Republic. It suggests
targeted and tailored actions for the authorities responsible for these funds, building
on their existing fraud and corruption risk management practices. The strategy and
key actions draw from the OECD Recommendation of the Council on Public Integrity,
as well as European Commission guidance and international standards of inter alia
the Committee of Sponsoring Organizations of the Treadway Commission (COSO), Institute
of Internal Auditors (IIA) and International Organization for Standardization (ISO).
The strategy outlined in the report identifies two key areas for improvement:
Enhancing fraud and corruption risk assessments, with a focus on data-driven approaches to risk management
Adopting a systematic approach for managing fraud and corruption risks involving ESI Funds.
Throughout 2014–20, the Slovak Republic has received nearly EUR 14 billion from the European Structural and Investment (ESI) Funds in various sectors, including infrastructure, the environment, research and innovation, and service delivery.
FRAUD AND CORRUPTION IN EUROPEAN STRUCTURAL AND INVESTMENT FUNDS: A SPOTLIGHT ON COMMON SCHEMES AND PREVENTIVE ACTIONS
This illustrated guide raises awareness of not only fraud schemes affecting ESI Funds, but also the preventive actions to avoid a “pay and chase” model.
It contains illustrated schemes that focus on risks throughout the project cycle to demonstrate the complex nature of fraud and corruption in ESI Funds. It highlights the typical perpetrators and what tactics they employ to defraud the EU budget. The guide also includes suggested actions to prevent and detect risks.