Fraudsters exploited state subsidies for electric buses in France, embezzling up to €12 million through fictitious vehicle registrations, according to an investigation by the French daily Le Monde. The irregularities occurred between November 2022 and January 2023, with over half of the 600 registered electric buses reportedly non-existent.
The scam leveraged loopholes in France’s state registration system, allowing perpetrators to submit false vehicle registrations to claim subsidies. The environment ministry acknowledged the fraud, noting that authorities quickly detected the scheme and limited the stolen funds to “well below €10 million.” However, Le Monde claims the amount could reach €12 million.
The fraudulent activities coincided with an unprecedented spike in electric bus registrations, from an average of 50 per month to 300 in January 2023. Initially seen as a growth surge, the increase was later revealed to be part of the fraudulent operation.
The subsidies were introduced under the ‘Plan France Relance,’ a €100 million program to stimulate the economy following the COVID-19 pandemic. The scheme offered up to €30,000 per vehicle for electric trucks and buses, with M2-class minibuses eligible starting January 2023. Fraudsters exploited the program by submitting falsified documentation, including fake registration certificates and invoices, to the State Agency for Services and Payments (ASP).
Analysis by the transport portal transbus.org identified three bus models involved in the fraud: the Karsan eJest (492 cases), the Bluebus 6-metre (11 cases), and the Heuliez GX 337 Elec (1 case). The vehicle identification numbers (VINs) used in the scam often showed inconsistencies, such as gaps in the sequence of legitimate registrations. On some days, up to 45 fictitious buses were registered.
The investigation revealed 504 fake registrations, involving more than 120 owners, with nearly half of the fraud cases concentrated in Île-de-France, particularly in Paris and Seine-Saint-Denis.
Authorities are continuing their investigation to recover the stolen funds and prevent future exploitation of subsidy programs.
