WRITTEN QUESTION E-2274/02

by Armando Cossutta (GUE/NGL) to the Commission

(24 July 2002)

Subject: Incompetence in the financial and administrative management of the LIFE99/NAT/IT/6254 project in Treviso

From the correspondence concerning the project LIFE99/NAT/IT/6254 An integrated approach to the conservation of the Sile wetlands between the Commission and the body governing the Sile river regional nature park, it is clear that the administration of this project has been rather poor.

In the above-mentioned correspondence the Commission states that:

- the arrangements concerning the availability of financial resources were somewhat confused;

- mistakes had been in terms of the estimated costs;

- the beneficiary's share of the funding had not been allocated and the Commission had never been informed of this;

- the deadlines given had not been respected;

- there had been repeated and unjustified delays in sending reports;

- the second interim report failed to provide comprehensive or sufficiently clear information on most of the actions.

Furthermore, the Commission has been forced to retract the statements attributed to its representatives by the Tribuna di Treviso newspaper on 24 March, saying that these did not correspond to the statements made during the visit.

1. Does the Commission not think that an urgent technical inspection and audit should be conducted in order to verify that the Community funds for the LIFE99/NAT/IT/6254 project have been properly used?

2. Should accounting irregularities come to light, does the Commission not think it should demand reimbursement of those funds from the competent authorities?

Answer given by Mrs Wallström on behalf of the Commission

(20 September 2002)

In reply to the Honourable Member's written question concerning the above-mentioned LIFE-Nature project Swatch Integrated approach in the conservation of Sile wetlands, the Commission had already

carried out an on site technical inspection on 22 March 2002. Following the visit a series of questions and a request for a new intermediate report were addressed in writing to the project beneficiary on 28 March 2002. The beneficiary sent a new intermediate report on 15 May 2002, together with a request for modifications and extension to the project. The Commission refused this request on 11 June 2002, due to a number of financial and technical issues.

The final technical report and financial statement are due on 31 December 2002. According to the Standard Administrative Provisions, the rules which govern LIFE projects, inspections can be carried out at any time by both the Commission and the European Court of Auditors under the Financial Regulation of 21 December 1977(1). These may be carried out on site and comprise an examination of the work completed and the accounts and documents relating to the project. Verification of the need to carry out further inspections will be made on the basis of information provided in the final technical report and financial statement.

The Commission will only reimburse the eligible costs for work which it is certain has been carried out according to the agreed project proposal. In the case of inadequate completion of actions, the beneficiary will be required to reimburse part or all of payments already received from the Commission.

(1) Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities, OJ L 356, 31.12.1977.