Overfunding of research seems to be a largely neglected area. Getting money twice for the same project (or doing something different than being in the application) seems to be the “creative” solution many groups are choosing to get innovative ideas tested while avoiding premature leakage to the public.
As far as I see overfunding is never been reviewed by universities nor by funding agencies. The newly introduced EU timesheets are increasing only the bureaucratic workload but can not detect overfunding.
Unfortunately, an ethical behaviour kicks you from the pole position – the only solution are institutional funds that give you true academic freedom.