WRITTEN QUESTION E-3829/98

by Cristiana Muscardini (NI) to the Commission

(22 December 1998)

Subject: Costly consultancy and employment repercussions

1. Is it true that in May 1996 DG V concluded an annual contract with the woman director of the ASSI company for a study of the situation of elderly women in Europe, and that the Commission contributed a total of ECU 243 100 to the cost of the inquiry, estimated at ECU 374 000?

2. If so, does the Commission not consider such expenditure to be excessive for a study that is admittedly important but certainly not crucial to the measures to combat unemployment being implemented by national governments and Commission alike?

3. Is it true that the project leader is the wife of a Commissioner in office and that ASSI is located in the same building in which they live? If so, has the Commission considered the advisability, even while formally complying with the rules in force, of handing over such a sum to the wife of one of its Members when it itself is facing serious charges of fraud and embezzlement?

4. What moral principles and principles of sound management underline the Commission's decision to grant such an exorbitant subsidy to a project that has no influence on job creation prospects?

5. Is the Commissioner in question the same person who, according to the press of the time, authorised massive expenditure in less than transparent circumstances for supervision of the construction of the Hochtief building in Luxembourg?

Answer given by Mr Flynn on behalf of the Commission

(13 January 1999)

1. to 4. The allegations of financial impropriety made in the question are false.

Under budget heading B3-4104"actions for older people", the Commission selected 52 projects for co-funding in 1996. Selection was on the basis of criteria discussed with Member State and non-governmental organisation (NGO) representatives. The criteria emphasised the situation of older women, solidarity between generations and participation by older people themselves in the activities concerned.

One of the projects selected was called "Situation of elderly women" (SEW) and, in a contract dated 2 May 1996, the Commission undertook to provide financial support up to a maximum level of ECU 243 100 for the work involved. The project was developed by a partnership of organisations concerned with the welfare of older people in the four participating Member States Greece, Ireland, Portugal and Finland, with the Finnish partner, National Research and Development Centre for Welfare and Health (STAKES), as co-ordinator. STAKES is a government agency under the responsibility of the Finnish Ministry of Social Affairs and Health. The project aimed at highlighting the situation of older women in four peripheral areas of the Community. The grant to this project was decided in strict accordance with the budget authority's intentions for heading B3-4104. The budget heading concerned was not intended to be used to fund projects aimed at combating unemployment, and could not be so used.

The total financial assistance actually granted by the Commission to the SEW project was ECU 207 779. The project was successfully finished, its results published, and final payment has been made.

Mrs Hanna-Liisa (Assi) Liikanen is a civil servant employed by STAKES. In her capacity as an employee of STAKES, she was project leader of the team co-ordinating the SEW project and co-signed the contract with the Commission on behalf of STAKES, together with Mrs Vappu Taipale, Director-General of STAKES. There was no involvement in this contract of a company called ASSI, nor is the Commission aware of any company of this name.

5. The Commission would point out that the financial support contract in question was concluded in 1994 following an invitation to tender, at which time the present Commission had not yet entered office. For further information on this matter, the Honourable Member should refer to the Commission's answer to written questions P-656/96 by Mr Tatarella(1) and E-2442/95 by Mr Crampton(2).

(1) OJ C 173, 17.6.1996.

(2) OJ C 9, 15.1.1996.