WRITTEN QUESTION P-1041/99

by Ernesto Caccavale (UPE) to the Commission

(12 April 1999)

Subject: Alleged irregularities in the management of the global grants for Brindisi in Italy

According to recent newspaper reports there would appear to be a real risk that the global grant of 25 million euro earmarked by the European Union for the Brindisi area in Italy will be frozen. This situation has arisen as a result of a serious crisis in the management the consortium "Pacchetto Localizzativo Brindisi" set up in 1994 by manufacturers and trade unions to manage the Community funds earmarked for the area of Brindisi affected by economic crisis. Possible irregularities said to have occurred at the time of the valuation of the projects presented to the valuation committee have led to a long series of resignations by representatives of the manufacturers that were part of the above-mentioned company. There has also been severe criticism of the refusal to grant funding to companies recognised as sound and reliable which had submitted proposals that made considerable contributions to employment and investment. At present, 11 billion lire has still not yet been allocated owing to an "alleged lack" of suitable projects.

In view of the above, can the Commission:

- check the accuracy of the above-mentioned facts;

- carry out a detailed inquiry into the operation and responsibilities of the consortium given the job of managing and allocating Community subsidies and check the professionalism of its administrators;

- if necessary, intervene in order to ensure that these inefficiencies do not result in the Brindisi area, which already suffers from serious social and employment problems, losing the Community funds not yet allocated, which must be allocated by 31 December after which time they will be shared out between other areas of the European Union?

Answer given by Mrs Wulf-Mathies on behalf of the Commission

(29 April 1999)

The Commission is aware of the problems in the intermediary agency responsible for the management of the global grant "Area di crisi di Brindisi" following the resignation of some members of the management board.

At the request of the Commission, the authorities of the Apulia region have embarked on a thorough investigation of the situation - including examining the minutes of the meetings of the management board - in order to provide the members of the monitoring committee for the global grant with information as soon as possible.

If it emerges from the investigation that there are repercussions for the implementation of the measures, the Commission will immediately propose an extraordinary meeting of the monitoring committee so that appropriate steps can be taken to ensure that the Community funds for the benefit of the areas concerned are used in full within the deadlines set and the loss of public financing is thus avoided.

In addition, if it is considered that there may be irregularities in the management of the global grant, the Commission will take appropriate measures under the rules in force, in particular under Article 24 of Council Regulation (EEC) 2082/93 of 20 July 1993 amending Regulation (EEC) 4253/88 laying down provisions for implementing Regulation (EEC) 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instruments(1), on the reduction, suspension and cancellation of assistance.

(1) OJ L 193, 31.7.1993.