Acting Director-General of the European Anti-Fraud Office (OLAF), Salla Saastamoinen says she strongly encourages Cyprus to consider applying for support under the Union Anti-Fraud Programme (UAFP), in order to further strengthen its anti-fraud capacity through EU funding.
In an interview with CNA in view of her visit to Cyprus on 26-27 November, Saastamoinen also spoke highly of the cooperation of Cypriot relevant authorities pointing out that "their cooperation, openness and hospitality have been outstanding, and they set an example of the kind of partnership we want to build across the EU.”
She explained that the reasons bringing her to the island "are very much linked to the preparations for the Cypriot Presidency of the Council of the European Union." At the same time, she strongly encouraged Cyprus to consider applying for support under the Union Anti-Fraud Programme (UAFP), in order to further strengthen its anti-fraud capacity through EU funding.
According to the Acting Director-General of OLAF, “Cyprus is about to take on a leading role at a particularly important moment for the Union, especially when it comes to protecting the EU’s financial interests.”
She stressed that this is precisely why, from OLAF’s perspective, it is considered crucial that “our cooperation is smooth, effective and ready for the months ahead.”
As she noted, “we have not carried out many Presidency-related visits in the past, but I believe direct engagement with national authorities brings real added value.” She also underlined the uniqueness of the visit, pointing out that “this is the first time an OLAF Director-General has visited Cyprus, and I think it marks a positive step towards stronger, more structured cooperation.”
The visits' objectives
Describing the objectives of her presence in Cyprus, Saastamoinen said that there are two main pillars, the first concerning “building a strong link with the Cypriot Presidency from the outset.”
She explained that Cyprus is taking on a role at a critical period: “The timing is particularly relevant given the ongoing review of the EU’s Anti-Fraud Architecture, launched by the Commission last July” and its connection to the next Multiannual Financial Framework (MFF). She further highlighted that in the new era the role of national systems is decisive: “Under the Commission’s MFF proposal, national management and control systems become the first and central line of defence against fraud and irregularities” and that the new framework sets “clear standards for preventing, detecting and reporting fraud, corruption and conflicts of interest.”
The second objective of her visit, she said, is more operational. “I am here to see how cooperation works on the ground, meet our partners, and understand the realities they face. Speaking directly with the Minister of Finance, the Accountant General or our counterparts in MOKAS helps us ensure that our collaboration is not only well-designed but also effective in practice,” she added.
“I would also like to sincerely thank the Directorate of Financial Control of European Funds of the Treasury of Cyprus, which operates as our contact point in the country, for organising this visit. Their cooperation, openness and hospitality have been outstanding, and they set an example of the kind of partnership we want to build across the EU,” she noted.
Difficulty in identifying national trends
Regarding specific issues in EU programmes or funds that concern OLAF in relation to Cyprus, Saastamoinen explained that it is difficult to identify national trends. As she said, “it is quite difficult - and not always helpful - to single out specific ‘national’ trends. Fraud can occur in any Member State and can involve any type of EU funding.”
She noted, however, what OLAF investigations have revealed across the EU overall, stating: “from collusion and manipulation of procurement procedures to conflicts of interest, inflated invoices, evasion of customs duties, smuggling and counterfeiting.” She clarified that “these are issues that we see across the Union. They are not unique to Cyprus, but they do illustrate the complexity of the challenge.”
Enhancing Cyprus' anti-fraud capacity
At this point, she highlighted one particular aspect that concerns only Cyprus: that it does not sufficiently use EU funding to enhance its anti-fraud capacity: “one area I would highlight specifically for Cyprus is the opportunity to further strengthen its anti-fraud capacity through EU funding."
"I strongly encourage Cyprus to consider applying for support under the Union Anti-Fraud Programme (UAFP), which offers targeted assistance to enhance national systems and expertise,” she stressed
“I understand that Cypriot law enforcement agencies and beneficiary authorities have not yet applied for funding under the first component of the current programme, which supports technical assistance and training," she said.
This, she added, "is despite our ongoing efforts to reach out regularly to our counterparts in all 27 Member States to encourage them to make full use of the programme.”
She further stressed that this is one of the reasons for her visit: “I think it is a missed opportunity, because the programme is very successful, and it provides financial support through grants and specialised tools to help protect the EU’s financial interests. We would very much welcome Cyprus making use of it.”
Cooperation leading to clear results
As for successful OLAF interventions in recent years, Saastamoinen described as most meaningful “those where strong cooperation with Cypriot authorities led to clear results: whether in customs-related cases, dismantling of smuggling networks or detection of irregularities in the use of EU funds. These joint efforts demonstrate that when Cyprus and OLAF work closely together, we can deliver significant and tangible impact.”
Asked by CNA about OLAF’s involvement in the EPPO investigation concerning the LNG terminal in Vasiliko, she avoided commenting, in line with OLAF’s standard practice, as the case is ongoing.
Referring to the broader cooperation with Cyprus, she stated that “the cooperation with the Cypriot authorities is quite good”, explaining that “although in the past there were certain limitations linked to the national legal framework, Cyprus has taken important and very welcome steps to ensure that OLAF can fully exercise its mandate when conducting administrative investigations. These efforts have made a real difference, and we appreciate them greatly.”
According to Saastamoinen, a particularly strong area of cooperation is customs: “As you know, customs authorities across the EU are the first line of defence in protecting the Union’s financial interests."
"This is especially true for Cyprus, given its geographical position and the specific challenges that come with being at the external border of the EU,” she added, describing cooperation with the Cypriot Customs as “very productive: we exchange information, we conduct joint operational activities, and we work side by side to counter customs fraud, smuggling and other cross-border threats. This is precisely the kind of practical, hands-on collaboration that delivers results.”
She also noted that “the arrival of the European Public Prosecutor’s Office (EPPO) has also changed the landscape, including in Cyprus”, as it adds a judicial dimension to anti-fraud efforts, and cooperation with EPPO is strong: together they ensure that EU funds are protected and wrongdoers prosecuted.
A constructive attitude
As for whether Cyprus is equally results-driven as OLAF, Saastamoinen stressed that “our experience shows a clear commitment from the Cypriot authorities. We see willingness, responsiveness and a constructive attitude across the board.”
She added that every Member State faces challenges, but Cyprus has shown readiness to address obstacles, whether through legislative changes, administrative improvements or deeper operational cooperation. From OLAF’s perspective, this is what matters most: “a shared commitment to ensuring that EU funds are protected, and that fraud is tackled efficiently.”
On whether OLAF’s intentions align with those of the Cypriot public administration and whether staffing is adequate for implementing a National Anti-Fraud Strategy, Saastamoinen did not comment on internal staffing matters but stated that “Cypriot authorities remain fully committed to developing and implementing a National Anti-Fraud Strategy. OLAF fully supports them in this process.” She added that Cyprus participates actively in expert groups, receives targeted support, and that “genuine progress is being made.”
Looking ahead to the next MFF, she stressed that “having a comprehensive, coherent strategy based on a sound risk assessment will be an important audit and control requirement”, and from OLAF’s perspective, “it is encouraging to see Cyprus advancing in this direction, laying the foundation for stronger, more effective protection of EU funds.”
Enhancing transparency and accountability
Finally, on measures to enhance transparency and accountability, she encouraged Cyprus to complete and implement its National Anti-Fraud Strategy: “Cyprus could also make better use of the Union Anti-Fraud Programme, which provides funding for technical assistance, training, and operational tools. At the same time, it’s important to ensure that core systems, like IT and data management, are properly financed so controls are effective.”
She added that “OLAF can support Cyprus through training, operational tools, sharing best practices, and helping coordinate with European partners and third countries. These steps strengthen control mechanisms and reduce the risk of fraud or mismanagement.”
OLAF's acting DG concluded by noting that “overall, Cyprus and OLAF are moving together in the same direction — towards stronger, more results-oriented anti-fraud cooperation, but there is still work to be done. In my opinion, this visit marks a first step in building an even closer, more effective partnership for the months ahead.”
(Source: CNA)
