Norwegian police arrested five people Wednesday as part of an international investigation into suspected fraud and bribery involving NATO procurement contracts, with authorities estimating losses of at least 1 million euros ($1.1 million).
The suspects were detained in the western Norwegian region of Bergen over allegations that a company and its subcontractors inflated invoices for services provided to NATO vessels visiting ports in northwestern Europe between 2021 and 2025.
Norway's national economic crime unit said the alleged overbilling targeted the NATO Support and Procurement Agency (NSPA), which provides procurement and logistical support to the alliance's 32 member states and their partners.
The investigation also prompted coordinated searches in Germany and Romania, according to Eurojust, the European Union's agency for criminal justice cooperation.
Investigators suspect that the company submitted fraudulent invoices for shore-based services supporting vessels and their crews during port visits. The company is also accused of using an intermediary to bribe public officials in exchange for favorable treatment in contracts involving the NSPA.
Eurojust estimated that NATO member states suffered losses of approximately 1 million euros, although investigators have yet to determine the full financial impact of the alleged scheme.
Authorities searched the company's premises and several residences in Romania, while German investigators conducted raids at two businesses and a private residence.
The company at the center of the investigation has not been publicly identified.
Marianne Bender, a senior public prosecutor at Norway's economic crime unit, warned that rising global defense spending could create greater opportunities for financial misconduct.
"Defence sector budgets are increasing worldwide, which entails an increased risk of economic crime. This is an area we are monitoring closely," Bender said.
"If NATO has been defrauded, there will be a tough crackdown," she added.
The NSPA coordinates purchases of defense equipment, security systems and logistical services for NATO members and partner countries. The alliance itself does not own military assets such as ships, tanks or weapons.