WRITTEN QUESTION E-3269/98

by Viviane Reding (PPE) to the Commission

(30 October 1998)

Subject: The scandal involving ECHO: are dangerous religious sects being financed with EU funds?

As may be gleaned from press reports (see "Le Soir", edition of 14 October 1998, p. 11), the fraud scandal involving aid from the Commission's ECHO office is very extensive. It is alleged that the Japanese Sûkyô Mahikari sect, based in Luxembourg (the Château d'Ansembourg accommodates its administrative offices responsible for Europe and Africa) and classified as being very dangerous, has indirectly received vast sums of money from EU funds. It is also alleged that the leader of the sect for Europe and Africa, Count Gaston d'Ansembourg, has benefited from external contracts awarded by the Commission.

It is bad enough for funds allocated to relieve the sufferings of people in need to be embezzled, but the financing - even indirectly - of sects known throughout the world for their fanaticism and contempt for human life constitutes a scandal which would be hard to beat.

The valuable work done by ECHO, on which many people in need throughout the world depend, is brought into disrepute by this fraud, and that is something which damages the entire Community.

How does the Commission intend to prevent such instances of fraud in the future? To what extent will the establishment of an independent anti-fraud organisation prevent, for example, religious sects from being financed directly or indirectly? Is the Commission considering scrutinising the firms involved and their staff before it awards contracts?

Answer given by Mrs Gradin on behalf of the Commission

(7 January 1999)

The Commission is aware of the article published in the newspaper "Le Soir" on 14 October 1998 as well as the further article published in the newspaper "La Lanterne" on 22 October 1998.

On the basis of the information currently at the disposal of the Commission, there is no indication that a religious sect has been benefiting from Community funds allocated for humanitarian aid.

Moreover, the Commission confirms that Community funds (ECU 60 000) have been granted to the association Sukyo Mahikari for the restoration of the gardens of the "château d'Ansembourg" (pilot project 93/L/1 for the conservation of the European architectural heritage). An examination of the conditions of the allocation as well as the execution of the work have led to the conclusion that no irregularities have been committed.

It would be at this stage premature to comment on the other allegations concerning financial aspects contained in these articles. The matter is currently under investigation.

The Commission shares the view that it needs a high level of information when conducting contractual negociations and that it has to apply selective criteria such as the financial capacity of the candidates. The Commission would refer the Honourable Member to its communication of 18 November 1997 on sound financial management and administration(1) which indicated that procedures for awarding subsidies and for procurement are currently being reviewed. In addition, an early warning system has been set up to enable the Commission to cross check information prior to awarding contracts. The Commission would also point out that it does not have the powers to scrutinize systematically the staff employed by its contractors and that it is not entitled to adopt a discriminatory attitude based on personal data such as beliefs and convictions. In this context, the possible creation of an independent office to fight against fraud, as announced by President Santer, should not change the current situation.

(1) Improving Action against Incompetence, Financial Irregularities, Fraud and Corruption; SEC(97) 2198.