The European Commission has adopted a proposal to reform the EU's Anti-Fraud Office (OLAF), aimed to improve its efficiency, enhances its processes and ensure accountability, while preserving its independence as investigation body. The proposal includes measures to ensure that OLAF's investigations are conducted and followed-up more efficiently, to protect the rights of persons under investigation and to reinforce the cooperation between OLAF and its strategic partners in the fight against fraud.

Since it was set up in 1999, the European Union Anti-Fraud Office (OLAF) has carried out around 4500 investigations and has contributed greatly to protecting the EU budget against fraudulent activity. However, and given that some reforms are required in order for OLAF to perform to its full potential, the European Commission included its reform in its Work Programme for 2011.

Strengthening procedural guarantees and a compromise to efficiency and accountability

An important aspect of this proposal lies in the strengthening of the procedural guarantees. Not only persons under investigation must be made aware of their rights, but it will also have to be ensured their right to a fair defence as well as to be assisted by the person of their choice or have access to translation, should it be required. There will also be a process of review in place for when procedural rights may have been violated, and the Supervisory Committee will continue to monitor its activities, ensuring that its investigations are carried out in full independence and in line with the rules and procedures laid down.

In order to intensify cooperation between OLAF and Member State authorities and provide for greater information exchange on cases and the related prosecutions, the proposal foresees that each Member State would be asked to designate a contact point, which would facilitate the cooperation of national authorities with OLAF. In addition, Member States should report, upon request, on the measures they have taken in response to OLAF's case reports.

To make OLAF more efficient in its own work, the Commission has proposed that if an investigation is not completed within 12 months, the Office should inform the Supervisory Committee of why it needs an extension of this deadline. Besides, and although th Director General will continue to be ultimately responsible for deciding which investigations OLAF carries out, an internal body should be established to help with these decisions. It also establishes that in order to ensure optimal use of OLAF's resources, the OLAF should be guided by the financial impact of the suspected fraud when setting its operational priorities. Where it is more efficient, a case should be investigated at the level of the institution, agency, or body concerned, rather than by OLAF.

Improving cooperation with EU institutions and third countries

While OLAF's independence in its investigations is fully ensured, the Commission points out the need for close cooperation and information exchange between the Office and the EU institutions, in order to ensure the best possible protection of the EU’s financial interests. Given the high level of EU resources dedicated to external relations and international aid, OLAF’s role in protecting the EU budget extends beyond the EU’s borders, and therefore the Commission proposes that OLAF should be mandated to conclude administrative arrangements with competent services in third countries, in coordination with the European External Action Service and the relevant Commission services.

Cooperation with the European Police Office (Europol) and the EU’s judicial cooperation unit (Eurojust) is equally important and should be reinforced. Therefore, the Commission also proposes giving OLAF the mandate to conclude administrative arrangements with these two organisations.