WRITTEN QUESTION E-1007/96 by Alexandros Alavanos (GUE/NGL) to the Commission (26 April 1996)

Subject: Irregularities at the expense of the European Social Fund

Replying to Question H-0181/95 ((Debates of the European Parliament (April 1995). )) relating to frauds at the expense of the European Social Fund, Commissioner Monti indicated that 'during the period 1991 to 1994, the Greek authorities informed the Commission of 44 cases of irregularity in relation to the European Social Fund amounting to a total of Drachmae 734 455 708'. He indicated that the Commission had 'instituted legal proceedings in regard to one project of particular significance involving a sum of nearly Drachmae 455 million' and added that 'where fraud is uncovered, the Member States are required to recover the money which can then be reallocated to other projects... which fall within the scope of the relevant operational programme'.

Recently, in a letter to the Greek Government, Commissioner Flynn expressed his concern with regard to a recurrence of such problems concerning the use of funds for 1995.

What progress has been made by the legal proceedings concerning the above-mentioned 44 cases? If the funds involved in these irregularities have been reimbursed and reallocated, what was the specific case which led to legal proceedings being instituted and what problems did Mr Flynn ascertain and bring to the attention of the Greek Government in his letter?

Answer given by Mr Flynn on behalf of the Commission (17 June 1996)

In line with the relevant Community legislation ((Article 3(1) and 5(1) of Commission Regulation (EC) No 1681/94 - OJ L 178, 12.7.1994 - and Article 23(1) of Council Regulation (EEC) No 4253/88 - OJ L 374, 31.12.1988 - (as for the period 1990 - 30 June 1994). )), Greece reported 44 European social fund (ESF) cases of irregularities during the period 1991-1994. These cases were detected by the national authorities and in each case administrative decisions were taken to cancel the financial allocations provided to the project promoters.

17 of the reported cases relate to one promoter. Here, the Greek authorities reported to the Commission that they have initiated judicial proceedings. This promoter has appealed against the decision taken by the national authorites.

Member States are required to inform the Commission about the amounts which have been recovered arising from irregularities previously reported. Such further information has not yet been communicated by Greece. The Greek authorities are required to submit final claims for operational programmes under the first programming period, by the end of June 1996. These ESF final claims form the basis for the final payment from the Commission to the Member State. The Member States are obliged to exclude the amounts corresponding to detected irregularities from this claim for final payment.

Information communicated or acquired pursuant to the relevant Community legislation is covered by professional confidentiality and its disclosure is only possible where it is necessary in order to prevent or prosecute an irregularity or to establish whether an alleged irregularity has taken place.

The Commission has written to all Member States concerning the execution of the ESF appropriations for 1996. In the case of Greece, concern was expressed in relation to the low execution of 1994 and 1995 appropriations and the need of an in-depth analysis of the reasons for the current under-execution which would allow a better take-up of appropriations in 1996 and later years was underlined. The Commission has also expressed concern to the Greek authorities in relation to the malfunctioning of the accreditation system, during the transitional period 1994-1995, and has requested the improvement of the accreditation and the management mechanisms in terms of effectiveness and transparency.