An investigation by the European Anti-Fraud Office (OLAF) into a €114 million EU-funded project managed by Poland's Government Agency for Strategic Reserves (RARS) has revealed serious procurement irregularities.

The investigation uncovered significant breaches of procurement rules, including overpricing and undue advantages given to specific contractors.

As a result of these findings, OLAF has recommended that Poland repay €91 million intended for power generators for Ukraine due to these procurement irregularities.

RARS's lack of cooperation with OLAF, despite obligations under a grant agreement, raised concerns about potential financial mismanagement.

The former head of RARS, Michał K., has been detained in London on serious charges related to organized crime and financial misconduct in generator procurement.

Contracts awarded during this project were non-competitive, with some contractors charging up to 40% more than their actual purchase costs, undermining the proper use of EU funds.

OLAF's investigation has also led to the safeguarding of an additional €22 million against potential misuse, although the implementation of these recommendations awaits decisions from EU and Polish authorities.

Poland's current EU minister, Adam Szłapka, described OLAF's findings as shocking and indicated they would serve as critical evidence in ongoing investigations into RARS's procurement activities.

OLAF's mission is to detect and investigate fraud involving EU funds to protect taxpayer money and ensure effective use of resources.

The investigation highlighted that RARS violated principles of transparency, competition, equal treatment, and financial management during the procurement process.

Ville Itälä, OLAF's director general, stressed the importance of ensuring that EU aid to Ukraine is properly utilized to protect taxpayer interests and maintain security.

The investigation has resulted in arrests, although details regarding the detainees and specific charges remain undisclosed.