Flanders to collect fines of up to 800,000 euros for subsidy fraud
Anyone who commits fraud with Flemish subsidies now risks an administrative fine in addition to full repayment. Flemish Minister of Justice Zuhal Demir and Flemish Minister of Budget and Finance Ben Weyts are introducing a general Flemish subsidy fraud offense for this purpose. Since September, subsidy fraud has been a criminal offense throughout the country, but not every case goes before a criminal court. If the public prosecutor decided not to prosecute, the fraudster previously only had to pay back the money received improperly.
That loophole is disappearing. Flanders can now handle such cases itself and impose a fine, independently of the judiciary. "Paying back money obtained improperly can hardly be called a punishment," says Demir regarding the reason for the new regulation.
The amount of the fine depends on the type of fraud. Anyone who lies or withholds important information to obtain or retain a subsidy risks a fine of up to 800,000 euros. Anyone who deliberately uses subsidy money for something else risks up to 600,000 euros. Anyone who deliberately conceals that they have no or only partial entitlement to a subsidy risks up to 120,000 euros. The regulation applies to all Flemish policy areas, ensuring that subsidy fraud is addressed administratively in the same way everywhere.
At the same time, checks on applicants are becoming stricter. Individuals and organizations involved in violent radicalization, extremism, or terrorism, or who call for such acts, will be excluded from Flemish subsidies. The Financial Inspection is cooperating with the federal police and the Coordination Unit for Threat Analysis for this purpose, both before and after a subsidy is granted.
What does this mean for you? Anyone applying for a subsidy themselves, for an association, a training course, a home, or a business, must complete the file fully and correctly. An error that you do not report can now cost more than just repaying the amount. If your situation changes after the subsidy has been granted, report it immediately to the competent Flemish administration.