Luxembourg bus operators accused of subsidy fraud
According to the European Union’s independent public prosecution office, the accused bus operators are said to have systematically billed services as if they had been provided by electric buses. In reality, however, a significant proportion of these services were provided by diesel or hybrid vehicles.
By misclassifying these services as emission-free, the companies allegedly received higher subsidies and also avoided penalties for failing to meet electrification targets. The companies are suspected of having defrauded 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.
The accusation involves multiple public transport operators; however, the accusation does not specify which ones, instead writing that “All persons are presumed innocent until proven guilty by the competent Luxembourgish courts of law.”
Meanwhile, the accused companies have denied the subsidy fraud claims, “claiming billing data came exclusively from state-run software and that operators never received EU funds,” according to the Luxembourgish publication Delano. The Luxembourg Federation of Bus and Coach Operators (Fleaa) expressed “deep surprise” at the allegations and claimed that the investigation is potentially misdirected.
No companies have been formally charged yet; however, Luxembourg’s Judicial Police conducted coordinated searches at the offices of major bus operators and the home of a former senior transport official.
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