A4-0049/98

Resolution on the Commission's conduct in respect of alleged fraud and irregularities in the tourism sector

The European Parliament,

- having regard to Articles 138c and 206 of the EC Treaty,

- having regard to Rule 148 of its Rules of Procedure,

- having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Transport and Tourism (A4-0049/98),

1. Concludes as follows:

a) Information to Parliament

Ever since worries were first expressed in 1989 concerning possible internal fraud and corruption in its tourism unit, the Commission has withheld relevant information from Parliament and, judging by its reports, from the Court of Auditors, provided information only after unjustified delays and, at times, provided misleading information.

b) Measures taken against individuals

The Commission was slow to take disciplinary action against any of the staff concerned, and has still taken none against the hierarchical superiors responsible for management. Internal investigations were conducted by bodies answering to the Commission administration. The Commission never of its own accord informed the relevant judicial authorities of its suspicions concerning possible criminal activities by its own staff and in some cases delayed the progress of criminal investigations by refusing to comply with requests for the waiver of official immunity.

c) Administrative culture

Practices, rules and procedures covering the management of direct expenditure, especially relating to calls for tender, are lax, inadequate and, in any case, poorly applied. Administrative practices which were known to be unsatisfactory and irregular were tolerated for a prolonged period by Commission managers at all levels until they became public knowledge.

d) Credibility and accountability

The accountability of the Commission to both political and judicial authorities is neither guaranteed nor enforceable. Parliament's power of discharge is subverted by its inability to obtain the information its requires, while the principle of official immunity can be used to frustrate inquiries by judicial authorities. In these circumstances, the credibility of the European institutions is seriously undermined and public confidence in them cannot be restored unless accountability is made to function in practice.

e) Conduct of the enquiries

The enquiry carried out into events in several Member States was characterized by poor coordination between national departments. The Commission was unable to ensure coordination and did not propose the reforms which would allow it to lead such enquiries.

2. Believes it necessary to examine the reasons for which neither the European Parliament nor national judicial authorities have been able to hold the Commission effectively to account for the actions of its officials. Furthermore, believes that reforms are necessary to make the Commission a more open and accountable administration. Bearing in mind the problems outlined above which constitute impediments to the correct operation of the democratic and judicial accountability of the Commission, proposes an Interinstitutional Agreement in which the Commission has the same obligations towards the Committee on Budgetary Control of the European Parliament as it has in the present procedure of a Committee of Inquiry;

3. Deplores the fact that the protracted inquiries and investigations into the alleged criminal activities occurring in the Tourism Unit of the Commission had adverse effects on tourism as a whole and on the fate of Community actions in this sector;

4. (a) Calls for the regular submission by the Commission to Parliament, beginning immediately, of the following information:

- a list of all current internal investigations involving allegations of fraud and corruption on the part of officials of the European institutions,

- a list of all special audits carried out by the directorate-general for financial control;

b) Shall not grant the 1996 discharge until the information specified has been provided in a form acceptable to Parliament and the Commission has taken steps to ensure that the competent national judicial authorities are swiftly and automatically informed whenever there is suspicion of fraud, corruption or any other offence involving officials;

5. Instructs its Committee on Budgetary Control to come forward with proposals to reform its structures and procedures which take account of the growing importance of its tasks and ensure full and effective monitoring of the expenditure of the EU budget by the European Parliament;

6. Instructs its President to forward this resolution to the Commission, the Council and the Court of Auditors.