WRITTEN QUESTION E-1894/01

by Konstantinos Hatzidakis (PPE-DE) to the Commission

(28 June 2001)

Subject: Monitoring of projects jointly funded under the 2nd CSF in Greece

Is the Commission satisfied with the system of monitoring the proper management and transparency of programmes jointly funded under the 2nd CSF in Greece? What is the extent of the infringements detected and what penalties have been imposed?

In particular, does the Commission consider that the system works in a totally satisfactory way in respect of penalties imposed for defective work in carrying out public contracts? Does OLAF (the Anti-Fraud Office) have all information about defective work? What additional measures should the Greek authorities take?

Answer given by Mr Barnier on behalf of the Commission

(17 September 2001)

For the 1994-1999 programming period, the Commission would remind the Honourable Member that, under Article 23 of Council Regulation (EEC) No 2082/93 of 20 July 1993(1), the Member States are chiefly responsible for checking that part-financed operations are properly carried out, providing supporting documents on the relevant expenditure, preventing and taking action against irregularities, and recovering any amounts wrongly paid.

Where Greece is concerned, nine decisions on corrections were taken in 2000. During 1999, five corrections totalling 837 334 were imposed on Greece. The payment period will run until the end of 2001 at national level, while controls may be carried out until 2004 under the rules in force.

It should however be recalled that, in view of the multi-annual nature of the Structural Fund programmes, many other corrections are made by Member State authorities as a result of the findings and recommendations of national or Community audit bodies without the need for a formal Commission decision, as they are made during the implementation period of the programmes.

The Commission would also emphasise that most of its corrections for the 1994-1999 programming period will be made after 30 June 2002, when final payment claims are submitted. Member States will then be required to append a statement by an independent service summarising the conclusions of the audits carried out in previous years(2). At that point, if the Commission is not satisfied that adequate action has been taken in respect of the findings of the audits (particularly regarding systemic errors or the recovery of irregular payments), it may impose corrections.

In the meantime the Commission has intensified its audits in all Member States, including Greece, and is actively promoting performance controls (value for money) and focusing on the development of an improved audit culture and organisational capacity within the Greek administration.

Under Commission Regulation (EC) 1681/94 of 11 July 1994 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the structural policies and the organization of an information system in this field(3), the European Anti-Fraud Office (OLAF) has indicated that it has received thirty-three communications from the Greek authorities on shortcomings relating to public works carried out under the Community support framework for Greece during the 1994-1999 programming period. More precise details have been requested from the authorities, who have undertaken to provide appropriate answers.

The Commission does not currently possess information on the action taken in respect of the different cases in which shortcomings were noted in the context of public works part-financed under the Structural Funds in Greece. The Commission formally requested this information from the Greek authorities on 29 January 2001. A reminder was sent recently.

During the new Structural Funds programming period (2000-2006), the Commission will exercise in full its significant control responsibilities and powers, as they are described in Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds(4) and the Regulations on its implementation(5)(6). These Regulations define the Member States' duty to set up properly functioning management and control systems and the Commission's responsibility for checking their effectiveness, suggesting improvements and imposing financial corrections if necessary.

The Commission considers that the above-mentioned measures constitute a sufficient framework to allow it to verify the sound management of operations in all Member States, and to make financial corrections when irregularities occur.

(1) Council Regulation (EEC) No 2082/93 of 20 July 1993 amending Regulation (EEC) No 4253/88 laying down provisions for implementing Regulation (EEC) No 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instruments, OJ L 193, 31.7.1993.

(2) Under Article 8 of Commission Regulation (EC) No 2064/97 of 15 October 1997 establishing detailed arrangements for the implementation of Council Regulation (EEC) No 4253/88 as regards the financial control by Member States of operations co-financed by the Structural Funds, OJ L 290, 23.10.1997.

(3) OJ L 178, 12.7.1994.

(4) OJ L 161, 26.6.1999.

(5) Commission Regulation (EC) No 448/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the procedure for making financial corrections to assistance granted under the Structural Funds, OJ L 64, 6.3.2001.

(6) Commission Regulation (EC) No 438/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the management and control systems for assistance granted under the Structural Funds, OJ L 63, 3.3.2001.