EPPO in Bologna indicts six suspects in fraud investigation involving sustainable mobility project

Brussels – The European Public Prosecutor’s Office (EPPO) in Bologna has indicted six individuals before the competent Italian court for suspected fraud involving EU funding under the LIFE programme, intended to support sustainable mobility initiatives in the Tuscan municipalities of Isola del Giglio, Monte Argentario and Orbetello.

The project aimed to promote “integrated sustainable mobility” through the use of electric vehicles, including bicycles, scooters, cars and boats. It also envisaged electric boats for navigation in the Orbetello lagoon. According to the investigation, the project coordinator and other beneficiaries allegedly misused a substantial part of the EU funding awarded for the project. In particular, the evidence gathered indicates that vehicles and equipment acquired or developed with EU funds were ultimately left unused and abandoned. Investigators also established that approximately 70 per cent of the project budget was allocated to personnel costs, including expenses allegedly unrelated to the project’s implementation. Furthermore, instead of carrying out genuine project activities, some of the suspects allegedly awarded contracts to companies linked to them. These companies then invoiced consultancy services connected to the project, “artificially inflating project costs and enabling the unlawful acquisition of EU funds.”

The project received a total of 2,841,430 euros in funding. Thanks to the investigation, the payment of the final instalment of 852,549 euros was prevented. Those indicted include the project’s scientific coordinator, an administrative employee involved in its management, three company directors, and one employee of beneficiary companies.

The investigation was carried out by the Orbetello branch of the Guardia di Finanza under the direction of the European Prosecutor’s Office in Bologna. It included multiple searches across several Italian regions and the analysis of seized documentation. It should be noted that all persons concerned are presumed innocent until proven guilty in the competent Italian courts of law.