European anti-fraud office OLAF has sent judicial recommendations concerning Volkswagen to German prosecutors.
According to Reuters, the office had been investigating whether the car maker used EU funds and European Investment Bank (EIB) loans to develop devices that cheated emission tests.
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So far, 'dieselgate', first exposed in September 2015, has cost the company over US$25bn in fines, compensation and vehicle refits.
It nonetheless boosted first half 2017 operating profit to EUR8.9bn (up from EUR7.5bn in H1 2016) while operating return on sales grew to 7.7% (7%) as sales rose 7.3% to EUR115.9bn.
Reuters said OLAF had investigated whether there was any link between funds VW received and the production of engines or devices that could be used to manipulate emission tests. Volkswagen has denied misusing the funds and said they were used for their designated purpose.
"OLAF sent its final report and a judicial recommendation to the German national authorities, namely the public prosecutor's office in Braunschweig, Germany, as well as an administrative recommendation to the European Investment Bank," OLAF told Reuters.
It added it had recommended the EIB review the implementation of its anti-fraud policies.
In May 2016 the EIB announced VW had repaid two EUR975m (US$1.15bn) loans ahead of schedule, the news agency added.
