Good morning Ladies and Gentlemen and thank you all for coming. I am delighted to see that so many of you could be with us at this training seminar today. I know how much you all have on your plates. We wouldn't ask you to take time from your busy schedules unless the matter was truly important. And it is. In similar circumstances, many speakers like to start off by saying what a pleasure it is to be where they happen to be. But in this case - for me - it's not just "a" pleasure, but two it's a doubleheader, if you will. First, I am pleased to welcome you all on behalf of OLAF at our seminar. And allow me to also thank our Hungarian colleagues for co-hosting this important event with us. And second, on a more personal note, I just can't tell you what a pleasure it is for me to be in Budapest, a charming capital which I have had the pleasure to visit and enjoy before. Now, I certainly don't intend to keep you too much, but nonetheless would like to briefly speak about three things: (a) the OAFCN, its achievements, and the possible way ahead; (b) some considerations about fraud, and recent developments about it; and (c) the possible way ahead for us. OAFCN As you all know, the OAFCN has had many achievements to date, of which we should be proud. These include, but are not limited to: Successful joint communication actions such as: (a) The press coverage of the Joint customs Operations (JCO) Diablo I&II, coordinated by OLAF with assistance received from its OAFCN counterparts; (b) The joint film initiatives between OLAF and Member States services i.e., "OLAF: the Euro Funds Watchdog" a documentary about OLAF (produced by the Bulgarian club journalists against corruption); and (c) The good relations with various press associations - The International Federation of Journalists (IFJ), and also the OAFCN's other Associate Members: the BCJAC and the Gruppo Giornalisti Uffici Stampa (Italian journalist's press offices' group). 1
Now, what do these successes show? What do they disclose to the citizens of Europe? Well, to keep is short, primarily the fact that: OAFCN members work well together; there is a good dialogue and mutual respect between national antifraud investigative services and the press; and that OLAF has good relations with its national counterparts. I believe, however, that we have now reached a point which requires us to think ahead, about our next endeavors, we should ask ourselves questions such as: What must be preserved and why? What must be changed and why? How will we achieve this? I am confident that among other issues, our discussions will also attempt to address such questions. Fraud Second, and turning now to fraud for a moment, everybody knows it can happen anywhere, and that it's damaging effects goes far beyond the financial loss 1. The impact on reputation can be long lasting and often fatal. I should perhaps recall here the saying: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." The person who first said this was right! Further, you all know that there is, today, a much greater focus on corporate compliance and ethics than at any time in the past. Because of the proliferation of Internet, of cable news outlets, web-based portals, text messaging, and dozens of other "new media" platforms, the news - especially the bad news about fraud and corruption - travel faster than ever - and spread globally, amplifying risks, and creating new ones. Regrettably, fraud and corruption are pervasive and entrenched on a global scale, and a culture of corruption is still embraced as a way of doing business in many parts of the world. Instances of fraud and corruption occur every day and either goes undetected or is deemed not worthy of attention. 1 Alan Boeckmann, the chairman of the Board and Chief Executive Officer of Fluor Corporation, said: " Each year, one trillion US Dollars is lost to bribes and other forms of corruption. Now consider this: the trillion dollars lost each year to bribes could feed up to 400 million starving people for the next 27 years." 2
However, only cases involving overwhelming amounts of money or some other news-grabbing aspects make the headlines, and many fraud related cases go undetected. In fact, traditionally, only one in nine fraud cases ever appears in the media - which means that for every fraud you read or hear about, eight more will never appear in the public eye. Pretty alarming, isn't it? At an FBI training seminar I attended many years ago, when I was working as a United Nations Investigator, one FBI instructor said: "we're here, we're there we're everywhere, so beware!" I still remember this, and am sharing it with you today. Why? Because I believe us too, through collective efforts could, within our respective remits, and with our specific working tools, pass the same message to fraudsters. We may also wish to tell them that a different approach is preferred today, that is: less carrot - no more complacency or indifference by selected few with certain responsibilities, and who wrongfully think fraud is not their problem - and more stick and the stick here could include a more effective and coordinated approach by people like us. I also believe that real (and not merely trumpeted rhetoric about) accountability and integrity can and does stop fraud, and that clear and effective communication and shared experiences in such forums can help deter and prevent fraud - most notably by raising awareness and promoting public debate. Ladies and Gentlemen, The title of our seminar today "Proactive media strategies to promote EU-wide anti-fraud messages" suggests we should endeavor to find more creative and efficient efforts to ensure that both our message and efforts are overheard and well understood across Europe. High-level fraud and corruption is frequently a team sport that often involves collusion. It is well known that fraudsters work collectively and, that sometimes, because of the complacency by some, they are quite successful at what they do. As demonstrated by recent cases pending with OLAF, they do become more and more creative and versatile in designing and furthering their fraudulent schemes. This is why it is so important for all of us to be ahead of them! 3
While some increasingly talk about fraud and recognize that it must be dealt with, the need for effective anti-fraud and corruption prevention tools remains in my view pressing. One such tool is collective action. But collective action is not easy or quick, and requires patience, hard work and expertise. In a perfect world, we wouldn't need to gather and discuss such issues. Public and private individuals across Europe would have the highest degree of integrity. Fraud and corruption simply wouldn't exist. There would be no such thing as fraud or kickbacks. Unfortunately, we live in an imperfect world in which noncompliance, misfeasance, fraud and corruption exist. One only needs to read the daily papers or watch the evening news to learn of the latest corporate scandal. It is a given that corporate crime as some like to call it, will always be with us. Again, how we together can deal more effectively in tackling these important issues largely depends on our collective and creative efforts, which, once again, I trust this important forum will achieve - as it did in the past. It is often said that the accomplice to the crimes of fraud and corruption is frequently our own indifference. I too believe this to be true, and further believe that each of us could and should do more to combat them. But there is good news too. You may recall that in a not so distant past, when there was a hint of a scandal about fraud and corruption, particularly involving top managers in some corporations and organizations, the first impulse was to cover it up. Fortunately, this is no longer the case today because the many global anticorruption efforts, initiatives and partnerships over the last several years are beginning to make a real difference; the increased cooperation between law enforcement authorities in corruption and bribery investigations has yielded positive results, and incriminating evidence obtained from some investigations or prosecutions is being used now more frequently by anti-corruption agencies over the world for their own investigations. Today seems to be a good time for prosecutors, investigators and other guardians of the law. And in a way, one could argue that there has never been a better time to be a fraud investigator, not only because of recent corporate scandals here and there but also because of the strong responses by the public and the governments. 4
So these are good times for people like us, but if you should ask fraudsters, they would tell you these are very bad times for them, or so I hope. Likewise, there has never been a better time for journalists and media professionals who deal with fraud and corruption. Ladies and Gentlemen, Let me conclude by saying I very am confident that with enough pragmatism and sufficient intelligent attention to the interests of all involved, and by our collective action, we will prevail and will manage to ensure that the noxious practice of fraud is successfully suppressed in most places. Thank you very much for your attention 5