WRITTEN QUESTION P-3478/00

by Gabriele Stauner (PPE-DE) to the Commission

(31 October 2000)

Subject: Payments to the firm Fléchard

According to reports in the press, the firm Fléchard is once again involved in a case of fraud in connection with manipulated butter. Early in 1992 allegations had already been made regarding the firm's involvement in the fraudulent diversion to Poland of butter intended for the former Soviet Union.

In a letter delivered to me by an usher on 5 July 2000 the Commissioner responsible for budgetary matters invoked the provisions of the framework agreement between Parliament and the Commission to justify her refusal to disclose to me what sums Fléchard has received from the Community budget in recent years.

Is the Commission now prepared to answer the following questions:

- Is it true that Fléchard received the following sums in Community aid for exports to third countries:

- 1996: FF 29 129 659 (2 069 tonnes of butter);

- 1997: FF 105 747 713 (6 931 tonnes of butter);

- 1998: FF 72 907 357 (3 932 tonnes of butter).

- If so, since when has the Commission been in possession of this information?

- If not, what are the correct figures?

Can the Commission also state what sums have been paid to the firm in connection with food aid?

Finally, if appropriate can the Commission state what sums in processing aid the firm has received from the Community budget?

Joint answer to Written Questions E-3240/00 and P-3478/00 given by Mrs Schreyer on behalf of the Commission

(14 December 2000)

Investigations into adulterated butter are being conducted by the authorities of the Member States, in cooperation with the European Anti-Fraud Office

(OLAF). No final conclusions have yet been drawn as to whether the firms under investigation were involved in fraud. It is up to OLAF to keep Parliament informed of operational developments in its regular contacts with the institutions pursuant to Article 12(3) of Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning OLAF investigations(1).

The Commission would point out that only the authorities responsible in the Member States may take measures against a firm deemed to be unreliable (including suspension of the payment of amounts due for current operations) and enter that firm's name on the black list under Council Regulation (EC) No 1469/95 of 22 June 1995 on measures to be taken with regard to certain beneficiaries of operations financed by the EAGGF Guarantee Section and Commission Regulation No 745/96 of 24 April 1996 laying down detailed implementing rules(2). OLAF receives the relevant reports from the Member States.

The Commission would stress that the aid in question constitutes expenditure managed directly by the Member States, whose task it is to reclaim any sums unduly paid. At this stage, OLAF reports that no steps have yet been taken at national level to recover the aid. First, the exact quantities of ineligible products and their final destination (whether covered by aid or not) must be determined. For the same reason the loss to the Community budget has not been quantified.

In the letter referred to by the Honourable Member, the Commission pointed out that it had no access to the detailed information held by the national payment agencies which fell outside the scope of its inspection powers and that under the Community rules such information had to be treated in confidence. In particular, data on individual firms might be covered by business secrecy. Here the Commission would also refer to the provisions on protecting the confidentiality of personal data, as laid down in Article 8 of Regulation 1073/1999.

The Commission will not fail to inform Parliament of the action taken on the investigations under way, in accordance with existing arrangements.

(1) OJ L 136, 31.5.1999.

(2) OJ L 145, 29.6.1995; OJ L 102, 25.4.1996.