05-07-2025
Top Eurocrat embroiled in free five-star holidays scandal
A senior European Commission official took free flights and holidays for his family while negotiating with a foreign country, the EU's anti-fraud agency has said.
OLAF said it had exposed more than €870 million (£750.7 million) in misused EU funds in 2024. As part of its investigation, it found the civil servant had not declared gifts.
Henrik Hololei, a former top transport official, is now facing a criminal investigation by the European Public Prosecutor's Office, and, following OLAF's recommendations, an internal disciplinary probe by the commission.
He is accused of accepting luxury trips and staying in five star hotels for him and his wife while negotiating an aviation agreement with Qatar.
The Estonian has since accepted a new role advising on international partnerships with reduced pay in the commission.
OLAF said Mr Hololei had leaked sensitive internal documents with a non-EU country or entity in a breach of their duty of professionalism, loyalty and confidentiality.
'We confirmed that the person failed to declare their flights, hospitality, gifts as well as the complimentary benefits that their spouse received whilst accompanying them on a number of business trips,' it said.
'We further identified that a non-EU country's economic operator provided the senior staff member and their family with complimentary flight tickets and hotel accommodation.'
The watchdog added, 'However, we did not conclude that these gifts and preferential treatment led the person to act favourably on behalf of a non-EU country or non-EU entity.'
'Disciplinary procedure'
The European Public Prosecutor's Office opened criminal investigation into Mr Hololei over corruption allegations after Libération, a French newspaper, revealed confidential details of OLAF's inquiry.
A European Commission spokesman said the EU executive had opened a disciplinary procedure against Mr Hololei earlier this year.
'This internal disciplinary procedure is ongoing and is carried out within a reasonable period of time, account being taken of both the interests of the institution and of the person concerned. The Commission does not comment further on individual cases,' the spokesman told The Telegraph.
The procedure focuses on four alleged breaches of the commission's rules, including the unauthorised acceptance of gifts, conflict of interest, unauthorised disclosure of documents and transparency.
Mr Hololei did not respond to a request for comment. MEPs have expressed disappointment that the aviation agreement with Qatar was not suspended after the allegations.
The European Public Prosecutor's Office has confirmed an ongoing investigation.
'The EU's response is not just feeble – it's farcical. Even the top brass aren't beyond suspicion, yet the worst a wrongdoer can expect is a perfunctory slap on the wrist,' Frank Furedi, executive director of the eurosceptic think tank MCC Brussels said: 'With consequences so toothless, the rot is not just setting in, it's thriving. Brussels must act, or risk becoming a byword for impunity.'
OLAF's annual report said it had uncovered fraud worth €870 million last year, closing 246 investigations and opening 230 new probes. It issued 301 recommendations to EU and national authorities.
This included four recommendations to the European Commission after investigations, while another three probes have not yet been concluded. There were four ongoing investigations into European Parliament staff and one concluded in the council of the European Union.
Two were concluded into staff at the European Investment Bank, while three were ongoing at the EU's foreign affairs service. Another two were concluded at Frontex, the EU's border agency.
'Substantial breaches'
OLAF, which investigates the misuse of EU funds, found €4.4 million (£3.8 million) worth of irregularities in one EU agency's training program. The agency reimbursed full costs for goods like laptops and furniture and did not take into account depreciation costs.
'Laptops with a three to five year lifespan were fully reimbursed after only a few months of use. The Agency also funded furniture that could have been used for five to ten years, but was only used for a few months,' the report said.
It found €120,000 (£103,000) in payments to EU staff that broke the rules.
OLAF uncovered 'substantial breaches of procurement, transparency and financial management rules' related to a €114 million (£98.3 million) EU funded project in Poland to deliver power generators to Ukrainian regions suffering from power shortages because of the war.
'Thanks to our efforts, an impressive €91 million (£78.5 million) has been targeted for recovery,' it said, adding 'contracts were awarded without authentic competitive bidding.'
It also closed the last of six investigations into a scandal that involved about €10 million (£8.6 million) of bribes being paid by farmers to Slovak officials to illegitimately access EU agricultural funds.
It uncovered 'systemic and widespread use of bribes to ensure the undue approval of rural development projects for EU co-financed subsidies from 2015 to 2020.'
The agency recommended the recovery of €10 million in EU funds and loans.
After a two-year investigation it uncovered an illegal Greek landfill project, which cost the EU €1.1 million (£950,000).
The landfill was dormant for the first three years of its existence before ignoring environmental and safety rules from 2019.
'It morphed into a chaotic dumping ground for all sorts of refuse, with equipment either shattered or useless. Ultimately, we discovered that the landfill in question was not even eligible for EU funding,' OLAF said.
