EU reports pinpoint fraud and maladministration

MEPs have been particularly angered by what they see as the passivity of Commissioner Manuel Marin, who, they say, failed to …

MEPs have been particularly angered by what they see as the passivity of Commissioner Manuel Marin, who, they say, failed to act decisively on illegal contracts and hiring practices in 1993 and 1994 when they came to light in the EU Humanitarian Office, ECHO, for which he was then responsible.

These involved fraud through fictitious contracts totalling some £350,000 as well as the practice of using external contracts to hire additional Commission staff to circumvent ceilings on staffing.

The Commissioner for Education and Science, Ms Edith Cresson, is accused of cronyism in arranging for contracts to go to friends, or interfering with the independent allocation of research grants to favour specific projects, and of failure to end abuses of the Leonardo training programme.

Other problem areas include:

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Tourism - In 1996, the Commission launched an inquiry into widespread irregularities in tourism projects, including alleged corruption by Commission staff and fraud by contractors. Some £5.8 million was overpaid, partly as a result of fraud. Criminal proceedings in France and Belgium are in progress.

Aid - The Commission detected irregularities in contracts worth £3 million at the humanitarian aid office, ECHO, including £350,000 in fraud. Charges are pending in Luxembourg.

Mediterranean programmes - In 1995, the Commission suspended all its aid programmes for Mediterranean countries after the EU's Court of Auditors highlighted apparent irregularities.

Security - Investigation of problems in the award of a contract to guard Commission buildings. Disciplinary proceedings were started against four officials last July. An investigation is under way.

Nuclear safety - The Court of Auditors has found gross waste in the EU's programme to help clean up eastern Europe's nuclear industry. After hundreds of millions were spent the court noted no significant improvement in safety.

Patrick Smyth

Patrick Smyth

Patrick Smyth is former Europe editor of The Irish Times