WRITTEN QUESTION E-2451/01

by Erik Meijer (GUE/NGL) to the Commission

(11 September 2001)

Subject: Method of ascertaining and amount of claim for repayment of subsidies for European Social Fund projects in the Netherlands in 1994-1996

It is extremely unclear how the claim for repayment of NLG 447 million in European Social Fund subsidies misused by the Netherlands was arrived at.

1. Can the Commission confirm that Council Regulation No 4253/88(1) of 19 December 1988 laying down provisions for implementing Regulation No 2052/88(2) was the basis for determining the above claim for repayment?

2. Article 24 of this Regulation mentions a suitable examination by the Commission: can the Commission give a complete overview of the checks made under its responsibility on ESF subsidies in 1994-1996 and of the findings and conclusions? Can the Commission provide a similar overview for the period up to the beginning of 1999?

3. In the region of Limburg, strong evidence has recently come to light that ESF funds have been used unlawfully and that fraud has been committed in relation to them, inter alia by returning to businesses voluntary contributions which they have made and subsequently counting them as public funds, and by using ESF-4 funds in connection with the bankruptcy of the company Abb MCG. Is the Commission aware of this? If so, will it investigate the matter, or has it already done so, and if so, what were its findings?

4. In other regions too, for example Rijnmond, Gelderland and Zeeland, evidence of irregularities has been found. In Gelderland and Rijnmond, an investigation has been carried out pursuant to Article 24. This resulted in a claim for repayment. Has an audit also been performed in Zeeland (Zeeland Centre for Vocational Training and Employment Promotion) and if so, what is the current situation in this regard? Have other regions of the Netherlands also been investigated?

5. Could these investigations result in an even higher figure than that quoted in the Commission's letter of 24 July 2001, which states that NLG 447 184 814 in ESF subsidies for 1994-1996 might be reclaimed on the basis of an extrapolation from the audit by the Audit Department of the Ministry of Social Affairs of a sample comprising 45 projects?

6. In view of the numerous indications of irregularities, possible mismanagement and fraud, and their extent, has the Commission referred the matter to OLAF?

(1) OJ L 374, 31.12.1988, p. 1.

(2) OJ L 185, 15.7.1988, p. 9.

Answer given by Mrs Diamantopoulou on behalf of the Commission

(29 October 2001)

1. The possibility, for the Commission, to adopt suspension, reduction or cancellation decisions is provided for in Article 24 of Council Regulation (EEC) No 4253/88 of the Council of 19 December, laying down provisions for implementing Regulation (EEC) No 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, as amended by Council Regulation (EEC) No 2082/93 of 20 July 1993(1). This Regulation, which implements Council Regulation (EEC) No 2052/88 of 24 June 1988 on the tasks of the Structural Funds and their effectiveness and on coordination of their activities between themselves and with the operations of the European Investment Bank and the other existing financial instruments, as amended by Council Regulation (EEC) No 2082/93 of 20 July 1993, is applicable to the period in question.

2. The controls of ESF expenditure in the Netherlands that were carried out by the Commission are sent direct to the Honourable Member and to the Parliament's Secretariat.

3. Verification of expenditure by the Commission in relation to Objective 4 has so far not revealed any irregularities. The Dutch authorities are dealing with the implications of the bankruptcy of company Abb MCG and they are keeping the Commission informed.

4. A control mission to Zeeland was carried out and the draft report was sent to the Dutch authorities for reaction. This reaction will be taken into account when finalising the report and undertaking the necessary actions. It should be noted that the results of this control and the proceedings entered into with respect to the control missions carried out in Rijnmond and Gelderland are not dealt with in the reduction procedure to which the Commission's letter of 24 July 2001 refers.

5. The controls referred to under 4. concern the years after 1996. They should have no bearing on the suspension, reduction or cancellation procedure for 1994-1996.

6. Within the framework of the Commission's services, The European Anti-fraud Office has always been informed about the actions and findings of the services responsible for the European Social Fund.

(1) OJ L 193, 31.7.1993.