WRITTEN QUESTION P-2182/02

by Freddy Blak (GUE/NGL) to the Commission

(12 July 2002)

Subject: Persistent conflict of interests in the DG for Transport

The Commission's answer dated 25 June 2002 to my Written Question P-1566/02(1) is not satisfactory.

My written question concerned a Greek motorway, the Via Egnatia, which has been given priority under the TEN Programme. One of the main beneficiaries of this project is Egnatia SA. The managing director of this entity is the husband of the Head of Unit who drew up the draft decision relating to financial assistance. This constitutes a serious conflict of interest.

Will the Commission confirm that the Head of Unit in question drew up the draft decision on this project for approval by the Financial Committee (the Committee established under Regulation (EC) No 2236/95(2))?

Will the Commission confirm that the Head of Unit in question is responsible for the general management of the TEN project which includes the general guidelines for the Via Egnatia?

Will the Commission confirm that the spokesman for Commissioner Loyola de Palacio (quoted in European Voice) was mistaken when he claimed that the Head of Unit in question had been moved to another post?

Will the Commission confirm that Egnatia SA is the final beneficiary of the financial assistance, and will it please inform Parliament as to how much money has been given to Egnatia SA to date?

Apparently, 160 small contracts have been signed with regard to studies for the Via Egnatia. Will the Commission please explain what these studies cover and how they comply with the objectives of the programme? Will it also indicate whether it has carried out any on-the-spot checks and, if so, what the outcome was?

(1) OJ C 301 E, 5.12.2002, p. 181.

(2) OJ L 228, 23.9.1995, p. 1.

Answer given by Ms de Palacio on behalf of the Commission

(16 September 2002)

The Commission has already answered some of the Honourable Member's questions in its reply to written question P-1566/02, concerning, inter alia, the responsibilities of the Head of Unit in charge of trans-European network project management (TEN-T). In its previous reply, the Commission clearly indicated that, to avoid any possible conflict of interest, since January 2001 the Head of Unit in question was not dealing with matters relating to the Egnatia project which is part of the PATHE-Egnatia Essen priority project, and that any questions on the project would be dealt with by the official in charge of TEN-T projects for Greece, who would report directly to the competent Director. The Director is also in charge of the general management of TEN-T projects, including the general guidelines for these projects.

The following financial information supplements that already provided.

The Egnatia section in question is financed by Community contributions under several budget headings:

- European Regional Development Fund (ERDF) and Cohesion Fund: EUR 1 914 million under Community support frameworks for the periods 1994-1999 and 2000-2006;

- TEN-T (EUR 30 million under the Multiannual Indicative Programme 2001-2006).

This cofinancing is granted by Commission Decisions, in accordance with the rules laid down in the relevant regulations. The funds are paid to the Greek Ministry of Economic Affairs, not directly to Egnatia Odos S.A.

Egnatia Odos S.A. was designated by the Ministry as the final recipient of the funds provided by the Community. As project manager one of its jobs is to conclude contracts for studies, both technical and environmental, for all phases of the project and for the construction of the different sections of the road. As is the case for almost all transport infrastructure projects, given the complexity of the work, the contracts are awarded in lots following an invitation to tender to the tenderers who submit the best bid. It was within this framework that the contracts referred to by the Honourable Member were awarded. The awarding procedures and overall relevance of such contracts are checked by the Commission.

The Commission departments involved, which collaborate closely with one another, regularly carry out administrative, technical and financial checks, to monitor the project's development and ensure that the funds allocated are being properly used. These routine investigations have not revealed any irregularities in the management of the Egnatia project.

For the Structural Funds and the Cohesion Fund, the Commission regularly checks the monitoring systems set up by the Member States, as they are responsible for providing reasonable assurance that the funds are soundly managed. Within the limits of the resources available the Commission carries out additional on-site checks on a sample range of projects.

The funds from the TEN-T budget, totalling EUR 30 million for the period 2001-2006, are revised annually on the basis of the Project Status Report and before any final payment is made on-site checks are carried out to ensure that everything is bona fide and has been properly done in accordance with the rules.

Regarding the allusion to an article in the European Voice newspaper, the Commission spokesman for transport and energy denied the allegations made in the article and gave a detailed explanation of the situation in a letter published in the European Voice of 27 June 2002.