Auditors' Court in Europe Sued Over Allegations of Obstructing Fraud Investigation
Headline: EPPO Takes Legal Action Against ECA Over Obstruction of Fraud Investigation
Updated: April 29, 2025
The European Court of Auditors (ECA) is in hot water as prosecutors file a lawsuit, accusing the institution of deliberately obstructing a probe into EU funds misuse.
A powder keg of controversy has erupted, with the European Public Prosecutor's Office (EPPO) taking a swipe at the ECA following a prolonged dispute over hindrance of a fraud investigation. The latest stone being thrown is a lawsuit, lodged on February 10 but only unveiled on April 28 through the European Union's Official Journal. The EPPO alleges that the ECA has been using underhanded tactics to thwart access to crucial staff members who could otherwise testify in the investigation, thereby halting progress in a major probe into possible financial misconduct.
Residency Requirements
The dispute can be traced back to 2021 when a French newspaper, Libération, disclosed that former ECA president, Klaus-Heiner Lehne, had allegedly failed to abide by residency requirements in Luxembourg. The allegation also suggested the former president and his associates abused EU expense claims, a potential sign of fraud against the European Union budget[2]. Nevertheless, at a hearing before the European Parliament's budgetary control committee in November 2021, Lehne refuted all accusations vehemently[2].
Immunity Request
Matters escalated further in early 2023 when the EPPO requested the lifting of immunity for several ECA staff members, including Lehne himself. This request was met with swift rejection by the ECA. The EPPO encountered several roadblocks, such as the denial of access to electronic archives, and, on December 9, 2024, the ECA refused permission for its staff to testify before EPPO investigators[4].
The EPPO maintains that the ECA's repeated stonewalling has thwarted their efforts to gather evidence and establish whether criminal charges should be filed[4]. The European Court of Justice has ruled before that EU institutions may prevent testimony from their staff only when the interests of the Union are of "considerable importance"[4]. With no clear justification forthcoming from the ECA, concerns have been raised within the European Parliament, where two MEPs have demanded answers[4].
Observer's TakeThe EPPO's move to take legal action puts mounting pressure on the ECA to cooperate. If proven, the allegations of obstruction could tarnish the ECA's reputation as a beacon of transparency and honesty in EU financial management[5]. Equally concerning is the possibility that this controversy could overshadow ongoing efforts to combat fraud within EU institutions. As this drama unfolds, it remains crucial to maintain public trust in the integrity of EU decision-making processes.
- The European Public Prosecutor's Office (EPPO) has accused the European Court of Auditors (ECA) of deliberately obstructing a probe into EU funds misuse, prompting a lawsuit in 2025.
- The controversy surrounding ECA has been escalating since 2023, with the EPPO facing several obstacles in their investigation, such as the denial of access to ECA staff members for testimonies.
- Highlighting the deteriorating relations between the EPPO and ECA, the European Parliament's budgetary control committee held hearings in 2021 to address allegations against the former ECA president, Klaus-Heiner Lehne, regarding residency requirements and potential fraud.
- In light of the EPPO's lawsuit, business, politics, and general-news media outlets have been focusing intensely on the finance and crime-and-justice aspects of the case, emphasizing the need for transparency and accountability in EU institutions.
- The potential implications of the ECA's obstruction of the fraud investigation are significant, as it may lead to a loss of trust in EU decision-making processes and the tarnishing of ECA's reputation as a symbol of transparency and honesty in EU financial management.
