Greece’s National Transparency Authority (EAD) is examining allegations of misuse of up to €500 million in EU development funds earmarked for the installation of smart water meters by municipalities and local water and sewerage companies (DEYA), officials told Kathimerini.
The case is also under investigation by the Hellenic Competition Commission and the European Public Prosecutor’s Office (EPPO) in Athens, which has received a large dossier of complaints related to the EU-funded program.
Sources familiar with the probe, speaking on condition of anonymity, told the newspaper that investigators are uncovering potentially incriminating evidence against those involved in procurement. The matter has attracted increasing attention among government officials in recent weeks.
EAD confirmed it is investigating procurement and installation procedures for the smart meters and has completed audits in three municipalities in Central and Western Macedonia. A larger inquiry is under way based on information provided by a whistleblower, who submitted internal documents under public-interest witness protections.
The program stems from a December 2023 call for proposals under Greece’s EU-backed National Strategic Reference Framework (ESPA) for integrated water supply management. The Special Managing Authority for the Environment and Climate Change Program (EYD PEKA) assessed applications and approved 55 projects with an average budget of €9 million each, bringing total spending close to €500 million.
According to complaints filed with EAD and EPPO, the projects may have been heavily overpriced. The whistleblower reportedly provided data showing that smart water meters were purchased at prices up to 700% above market rates. In one case, a DEYA in Central Macedonia reportedly paid €115 per meter, while another DEYA in Thessaloniki allegedly paid €282 per unit for a similar project. Comparable installations in Cyprus cost around €83 per meter.
The complaints also allege the existence of a price-fixing cartel, as bids in most of the 55 approved projects were similar and up to 200% above prevailing market prices.
Investigators are additionally reviewing claims that many projects were executed without adequate technical studies, prompting municipalities and DEYA to procure excessive quantities of equipment such as signal repeaters, inflating overall costs. One project on a Cycladic island reportedly included €2 million for smart-meter software.
Responsibility for approving the projects did not rest solely with local authorities, the report noted. Final decisions were taken by EYD PEKA and the General Secretariat for ESPA. The whistleblower also accused the head of EYD PEKA of urging staff to overlook gaps in technical studies and other inconsistencies to accelerate project approvals.
Officials have not publicly commented on the ongoing investigations.