Luxembourg public transport companies investigated for €23 million fraud involving zero-emission bus subsidies

The independent public prosecution office of the European Union (EPPO) has launched an investigation into a suspected large-scale fraud involving EU and national funds allocated to public transport in Luxembourg.

According to EPPO, several searches were carried out by the Luxembourgish Judicial Police at the premises of major bus companies, the national public transport administration, and the residence of a former senior official.

The photo included in the article is for illustrative purposes only and is not directly related to the subject of the article.

Suspect of public transport fraud in Luxembourg

The probe focuses on irregularities in the use of electric buses for which operators allegedly received higher payments while actually deploying diesel or hybrid vehicles, potentially defrauding up to €12 million of the European Regional Development Fund (ERDF) from 2022 to 2023 and up to €11 million of the national budget in 2024. 

“Several public transport operators are believed to have systematically invoiced services as having been carried out using electric buses, whereas in reality, a significant portion of these services was allegedly performed using diesel or hybrid vehicles – says the press note released by EPPO -. This practice enabled the operators to benefit from a higher remuneration rate reserved for zero-emission services. Consequently, the required corrective coefficients for not complying with the electrification obligations were not applied either and resulted in overbilling in the period between 2022 and 2024″.

The Luxembourg Federation of Bus and Coach Operators (FLEAA) responded to press that its members “never benefited from the European Union subsidies at the heart of the issue”.