Deterrence and rehabilitation: exclusion and settlements

• Pages: 22-23

22 2018 FRAUD INVESTIGATIONS ACTIVITY REPORT

DETERRENCE AND

REHABILITATION: EXCLUSION

AND SETTLEMENTS

The EIB Anti-Fraud Policy states that an individual or entity

that is found to have engaged in prohibited conduct may

be excluded from participation in EIB-f inanced projects or

operations. To further strengthen this framework, the EIB’s

Board of Directors approved an Exclusion Policy in 2017.

In 2018, a new EIB webpage dedicated to exclusion was

published containing:

• a list of entities publicly excluded from EIB-financed

projects and activities;

• a list of historical settlement agreements reached

between the EIB and respective par ties.

At any time before or during an investigation or during

exclusion proceedings, the Inspector General may initiate

negotiations with any individual or entity in respect of

alleged prohibited conduct.

Such settlements/agreements usually include a period of

exclusion, an undertaking to cooperate in any future inves-

tigations, the implementation of a risk mitigation strategy

and, in certain cases, the funding of international anti-cor-

ruption or other relevant initiatives.

EXCLUSION POLICY

NEGOTIATED SETTLEMENTS

NEGOTIATED AGREEMENT WITH VOLKSWAGEN2

On 19 November 2015, OLAF opened an investigation into the alleged misuse of EIB loans by Volkswagen AG for the

development and/or implementation and/or purchase of devices aimed at deceiving the regulatory bodies on the real level

of gas emissions of vehicles and automotive components manufactured by Volkswagen AG; and alleged misrepresentations

created by representatives of Volkswagen AG to obtain these EIB loans.

The OLAF investigation was closed on 19 July 2017 and the underlying report and recommendations were received by the

EIB on 27 July 2017.

The OLAF investigation focused on the EUR 400 million loan “V W Antrieb RDI” granted to Volkswagen AG by the EIB in

February 2009 for the purpose of co-f inancing the “Antrieb RDI” project. The objective of the EIB loan was to contribute to

financing means and measures for the development of engines and power train components for passe nger cars and

commercial vehicles as well as investments for the introduction of such means and measures in vehicles and their

production. The loan was based on 12 sub-projects, including light weight automotive construction, double-clutch gears,

on-board diagnostic concepts, and new technology to improve fue l efficiency (i.e. reduction of CO

2

emissions) as well as the

reduction of other emissions (i.e. NOx, particles, e tc.) for both diesel and petrol engines. Of the total of 12 sub-projects, one

sub-project “Dieselmotoren nach EUV und ULEV s tandards” was related to the technology used in engine EA 189.

2

http://www.eib.org/en/infocentre/press/news/all/agreement-reached-between-the-european-investment-bank-and-volkswagen-ag-in-relation-to-eib-loan-antrieb-rdi.htm