The European Public Prosecutor’s Office (EPPO) announced the arrest of 15 people suspected of defrauding over €3.5 million from the so-called reparaturbonus (Repair Bonus) programme financed by the EU via the Recovery and Resilience Fund (RRF). (Photo Illustration by Horacio Villalobos#Corbis/Corbis via Getty Images)

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Alleged €3.5 million fraud in Austria of EU recovery funds, says European Prosecutor’s office

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The European Public Prosecutor’s Office (EPPO) has announced the arrest of 15 people suspected of defrauding more than €3.5 million from the so-called reparaturbonus (Repair Bonus) programme financed by the European Union via the Recovery and Resilience Fund (RRF).

According to the EPPO, the 15 individuals are part of several criminal organisations.

The Repair Bonus is an initiative of the Austrian Government that promotes and incentivises the repair of electronic devices and household appliances. Its purpose is to encourage sustainability, reduce electronic waste and support local repair businesses.

The suspects allegedly registered existing and many fictitious companies as partner businesses of the Reparaturbonus.

On November 21, the EPPO claimed that they allegedly submitted false reimbursement claims to the Austrian Government through various companies.

“This allowed them to submit reimbursement claims for repairs to the national administrative and funding agency of the programme. After having been confirmed as partner businesses, the suspects submitted thousands of reimbursement requests claiming subsidies for repairs that allegedly never took place,” the EPPO said.

This was not the first instance of the RRF facing scrutiny for alleged fraud. On October 21, the European Court of Auditors issued a warning about what it said was the increasing risk of “double funding” under the RRF, attributing it to inadequate regulatory oversight and insufficient monitoring mechanisms.

On October 10, in its annual report, the EPPO also claimed that an increasing amount of money from the €240 billion European Union budget was being spent in “irregular ways”.