WRITTEN QUESTION E-2783/99

by Alexandros Alavanos (GUE/NGL) to the Commission

(18 January 2000)

Subject: Shortcomings of public works in Greece

In its answer (P-2120/98)(1) to my question concerning compliance with quality standards in public works in Greece (E-2592/98)(2), the Commission pointed out that the first ESPEL (special quality control council) quarterly report found that problems of the kind mentioned do exist and stressed that it expects this matter to make rapid progress and hopes that any financial, disciplinary, penal or other consequences for those responsible will have a dissuasive effect in the future and will result in lasting improvements to the situation as regards quality. It also noted that, depending on their seriousness, the shortcomings suffered by the projects would either have to be corrected by the contractors, or the costs involved would be deducted from their payments, or else the projects would have to be rebuilt at the contractors' own expense.

Given that ESPEL recently forwarded to the services of the Ministry for Economic Affairs reports on 44 public works, of which it transpires that only four projects meet all the necessary standards:

1. Will the Commission say what progress has been made in each case in dealing with the shortcomings mentioned in its answer, on which it expected rapid progress to be made?

2. What information does it have on further shortcomings and what measures does it intend to take?

(1) OJ C 135, 14.5.1999, p. 16.

(2) OJ C 31, 5.2.1999, p. 151.

Supplementary answer given by Mr Barnier on behalf of the Commission

(5 January 2001)

According to the information received from the Greek authorities, between July 1998 and April 2000 ESPEL carried out 1 253 routine inspections of projects part-financed by Community Funds. The findings show that 52 % of the projects are in order or have minor defects which the contractors will rectify (project category 1); 45 % of the projects have major defects which do not have safety implications but which will entail higher maintenance costs: these additional costs must be deducted from payments to the contractors concerned (project category 2); 3 % of the projects have serious defects which cannot be rectified: the contractors will have to redo these projects in full or in part and at their own expense (project category 3).

In accordance with existing procedures, the Ministry of Economic Affairs as the managing authority for the Community support framework sent the 1 122 individual reports drawn up by ESPEL in respect of projects with quality defects to the public authorities managing the projects concerned, asking them to take the action provided for by law. In 198 cases, the Ministry of Economic Affairs instructed the authorities managing the projects to require the contractors to set up and operate on-site test laboratories in compliance with their contractual obligations. In 478 cases falling within project categories 2 and 3 referred to above, the Ministry of Economic Affairs submitted the files to the public works inspectorate. Lastly, as provided for, the 30 cases falling within category 3 were sent direct to the public prosecutor's office.

On 5 April 2000, the public works inspectorate called on 136 authorities concerned with the projects at issue to submit a report on the measures taken in order to require the contractors to carry out the necessary repairs or in order to impose penalties on them in accordance with the law.

According to the Greek authorities, on the basis of the reports available and depending on the various cases, the following measures have been taken: financial penalties; price reductions; repair orders issued, in some cases with complaints against the contractors; repairs carried out; responsibilities attributed for the non-operation of on-site test laboratories; basic geological and other studies where these were not done; additional quality controls.

The Greek authorities have also informed the Commission that the reports are still being examined and that they will be published at a later date by the Joint Steering Committee on Public Works. The Commission has taken note of the quality controls which the Greek Government has requested, and welcomes this initiative. It would nevertheless like the files to be processed and monitored more quickly, and will ask for detailed information on the practical action taken in each case i.e. the economic, administrative or other penalties imposed.

The European Anti-Fraud Office also states that no communication has so far been received from the Greek authorities on the basis of Commission Regulation (EC) No 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 organisation of an information system in this field(1).

(1) OJ L 178, 12.7.1994.