WRITTEN QUESTION P-0009/01

by Bart Staes (Verts/ALE) to the Commission

(9 January 2001)

Subject: Lernout & Hauspie case: financial assistance for Sensus police project

The aim of the Sensus project, the successor to Aventinus, is to develop an information exchange programme for European police and intelligence services. The search for appropriate language and speech technology forms an important part of the project.

The European Commission provides financial assistance for Sensus. According to information provided on the Internet (http://www.sensus-int.de), coordination is in the hands of a Mr Stephan Bodenkamp. Officially the latter works for the Amt für Auslandsfragen in Munich. However, a judgment by a Munich court (of 20 December 2000) reveals that Stephan Bodenkamp's real name is Christoph Kionowski, and that he works for the German federal security service, the Bundesnachrichtendienst.

The Sensus project has its official headquarters on the same premises as the German firm Radial Sprachtechnologie GmbH. This company forms part of a European network in which, via Radial Belgium (Schoolstraat 1A in 2370 Arendonk), a number of so-called Language Development Companies belonging to speech technology firm Lernout & Hauspie are also involved.

For Lernout & Hauspie, the Language Development Companies were a way of acquiring revenue. The American business newspaper the Wall Street Journal has reported that this way of operating is particularly dubious from a technical accounting point of view and is at the centre of current judicial investigations relating to Lernout & Hauspie. One hypothesis being suggested is that the Language Development Companies were a vehicle for money laundering.

1. When did the Commission decide to provide financial assistance for the Aventinus and Sensus projects?

Why did the Commission decide to provide such assistance?

2. Who took the initiative to provide financial assistance for the Aventinus and Sensus projects?

3. Was the Commission decision taken at the request of any third party (persons, firms or organisations) and, if so, who were those third parties?

4. In what budget line is financial assistance for the Aventinus and Sensus projects entered?

5. What financial assistance (in euros) has to date been paid for the Aventinus and Sensus projects?

6. Is the Commission aware of the involvement of the German federal security service, the Bundesnachrichtendienst? If so, why did the Commission nevertheless decide to provide financial assistance for the Aventinus and Sensus projects? If not, will the Commission be taking action to recover the assistance paid out, given that crucial information on the Aventinus and Sensus projects failed to be provided to it?

Answer given by Mr Liikanen on behalf of the Commission

(2 March 2001)

1. The Commission decided to fund the Sensus and Aventinus cost-shared research and technology development projects after evaluation of proposals submitted under various calls published by the Telematics Applications Programme of the Fourth Framework Programme of the Community activities in the field of research, technological development and demonstration (1994-1998)(1). Aventinus-I was formally approved for funding by the Commission in its decision E/1389/95 of 26 July 1995. Aventinus-II and Sensus were approved for funding by the Commission in its decision E/1791/97 of 3 September 1997. In the case of Sensus, a further Commission decision (E/696/99) to modify the original decision was taken on 25 May 1999 to permit Europol to join the project.

2. The above-mentioned proposals were evaluated by the Commission according to the rules and procedures governing the Fourth Framework Programme of the Community activities in the field of research, technological development and demonstration, with the assistance of independent experts. As a result of the evaluation, they were proposed for funding having been deemed to be highly relevant and technically excellent.

3. Following evaluation, the proposals were granted Community financial support by the Commission, as detailed under point 1. above, after consultation with the programme committee.

4. As explained above, the projects originated from proposals submitted in response to public calls published in the Official Journal. The corresponding Commission decisions were taken in accordance with all relevant rules and procedures.

5. Sensus and Aventinus-I and -II were funded under the budget line B6-6121.113 of the Telematics Applications Programme (1994-1998).

6. A maximum Community contribution of 2 500 000 was approved for Aventinus-I, of which 2 341 190 was subsequently claimed and paid. A maximum Community contribution of 550 000 was approved for Aventinus-II, of which 513 777 was subsequently claimed and paid.

A maximum Community contribution of 2 250 000 was approved for Sensus, of which 478 753 has been paid as of 31 December 2000. Further cost claims are in progress.

7. These projects were aimed at developing technologies to facilitate cross-border collaboration between law enforcement and security agencies. The Commission is aware that AfA (Amt für Auslandsfragen), which was involved both in Aventinus and Sensus through its test centre for language technology, is a governmental body reporting to the German Federal Chancellery. As such, AfA has legitimate interests in the research areas addressed by the projects.

The Commission does not consider that it was misinformed about the objectives and results of the projects. As all tasks foreseen in the project work programmes have been successfully completed, the Commission has no specific grounds at this time to ask for recovery of any of the money paid to date. The Commission will nevertheless give due consideration to the information which was recently brought to its attention and assess whether this information may lead it to reconsider its position, including, but not limited to, carrying out a financial audit in accordance with the terms of the contracts.

(1) OJ C 230, 26.8.1993.