OECD/OLAF mafia-infiltrated EU-funded motorway / ghost road works and unfinished delivery
Risk Mechanism
EU-funded motorway works were compromised during implementation through beneficiary-contractor collusion, suspected organised-crime involvement, fictitious road works, manipulated documentation, bribery, and use of fictitious companies, allowing funds to be diverted while sections of the road remained poor quality or unfinished.
Case Summary
The OECD/OLAF report describes an anonymised EU-funded motorway project in which a beneficiary colluded with contractors and suspected organised-crime groups to divert ERDF funds. The scheme involved mimicking repair works without carrying them out, closing road sections without completing repairs, using a fictitious company name on invoices, and influencing implementation decisions. Following two OLAF investigations, recovery of EUR 381 million was requested; the road remained poor quality and unfinished for years.
Risk Lesson
This case demonstrates how weak implementation oversight can allow infrastructure funds to be diverted through ghost works, collusive contractors, fictitious companies, and manipulated delivery records. It highlights warning signs such as road closures without visible works, payment claims unsupported by physical progress, fictitious or opaque contractor identities, suspected criminal links, and persistent gaps between certified works and actual road quality or completion.
Reference
Organisation for Economic Co-operation and Development. (2019). Fraud and corruption in European structural and investment funds: A spotlight on common schemes and preventive actions. Available from: https://web-archive-storage.oecd.org/aemint-web-archive-prod/web-archive/85/859e83e5545fd6321112523abb2b75137229d1d926218cf7db5cc51a780e5a95.pdf