WRITTEN QUESTION E-2331/00

by Fernando Fernández Martín (PPE-DE) to the Commission

(11 July 2000)

Subject: Management of the European Social Fund in the Canary Islands

The Canary Islands, which is one of the outermost regions of the European Union and has Objective 1 status under the ERDF, has one of the highest rates of unemployment of any region of the Union. It is thus entitled to the assistance and aid earmarked for such regions under the European Social Fund.

The various programmes run in the Canary Islands to promote employment and combat unemployment are financed in large part from Community funds, managed by the Canary Islands' institute for training and employment (ICFEM), which reports to the Ministry of Employment and Social Affairs of the Canary Islands regional government. For several years, ICFEM's administration and the management of its budget have been the subject of almost continuous controversy, and even scandal, and the Canary Islands parliament has debated the matter on numerous occasions. The Minister for Employment and Social Affairs himself has admitted that he is unable to provide details of how considerable sums, running into billions of pesetas, have been spent. He stated recently that the amount not yet accounted for totals some PTA 5 billion.

A complaint has been lodged against the regional government's Minister for Employment and Social Affairs and two other senior officials, and is due to be examined by the courts. The report by the region's court of auditors contains serious criticism of the way in which public funds intended to finance schemes for the promotion of employment have been managed.

In addition to this, all of these facts have been brought to the attention of the European Parliament's Committee on Budgetary Control, which has in turn forwarded the information to the European Commission's Anti-Fraud Office.

Is the Commission aware of any or all of these facts?

Will the Commission give details of measures it has taken or intends to take?

Joint answer to Written Questions E-2331/00 and E-2551/00 given by Ms Diamantopoulou on behalf of the Commission

(13 October 2000)

The last check by the Commission on the use of aid from the European Social Fund (ESF) in the Canary Islands took place in May 1998 and revealed none of the facts referred to by the Honourable Member in Written Question E-2331/00.

Following complaints made to the Commission, the European Anti-Fraud Office (OLAF) wrote to the Spanish authorities on 6 March 2000 to remind them, for general information purposes, of the Member States' reporting obligation under 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) So far, no such reports have been received. The Office is also awaiting the results of an investigation into the management of ESF funding in the Canaries which the Spanish authorities say they have begun.

The Commission would like to thank the Honourable Member (the author of Written Question E-2331/00) for supplying certain information to OLAF, which has promised to examine it.

(1) OJ L 178, 12.7.1994.