WRITTEN QUESTION E-2422/01

by Michiel van Hulten (PSE) and Ieke van den Burg (PSE) to the Commission

(4 September 2001)

Subject: Implementation of the ESF in the Netherlands from 1994 to 1996

On 20 July 2001 Director-General Quintin wrote to the Netherlands government informing it of the commencement of the procedure provided for in Article 24 of Council Regulation (EEC) 4253/88(1) of 19 December 1988 in respect of the implementation, in the Netherlands, of projects financed by the European Social Fund over the period 1994 to 1996.

1. Article 10(2) of Regulation (EEC) 438/2001(2) of 2 March 2001 stipulates that samples must cover at least 5 % of the total eligible expenditure and be based on a representative sample of the operations approved. The report of the accounting department of the Ministry of Social Affairs and Employment of 7 June 2001, which gave rise to the Commission's letter, covers 45 projects which together represent only 1,21 % of total ESF support granted to the Netherlands over the period 1994 to 1996. Can the Commission indicate why it is apparently satisfied with a sample which, at least in terms of numbers, fails to meet the criteria laid down by Community law?

2. In paragraph 4.1 of its report, the accounting department says that it is not possible to make a statistically reliable estimate of the total amount of ESF subsidies, for the period 1994 to 1996, that was regular or irregular/uncertain on the basis of the investigation, as the latter is too limited in scope in relation to the large number of errors and the many different kinds of errors involved. In her letter, however, DG Quintin states that the Commission notes that the reported facts relate to an arbitrary sample. The irregularities and uncertainties found are therefore of a systematic nature. Does the Commission really believe that the systematic nature of irregularities and uncertainties can be established purely on the basis of the arbitrary nature of a sample, without taking account of the size of the sample involved?

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

(2) OJ L 63, 3.3.2001, p. 21.

Answer given by Mrs Diamantopoulou on behalf of the Commission

(17 October 2001)

1. Regulation (EEC) 438/2001 of 2 March 2001(1) does not apply to the 1994-1999 programming period. However, regulations in force at that time already required Member States to take the necessary measures to verify on a regular basis that operations financed by the Community have been properly carried out.

In order to obtain representative figures, the Commission has always insisted on a sample covering at least 5 % of total expenditure and of the number of projects, i.e. approximately 200 projects. However, the Dutch authorities maintained their sample of 45 projects, with the intention to determine later, on the basis of the results of this control, whether and to what extent further action would be necessary.

This sample was then controlled by the internal accounting department of the Ministry of Social Affairs and Employment. In its ensuing report, this department recommends that, in view of the disproportional large investment which would be needed to control a larger sample, no further investigation into 1994-1996 should be undertaken. Moreover, it recommends that the results arrived at during this control, i.e. the results based on the 45 project-sample, should be used for reaching an agreement with the Commission on the amount to be reimbursed. The Commission does not know whether the Dutch authorities have endorsed these recommendations. It should be noted, however, that these authorities have not forwarded any information to the Commission apart from the control report mentioned above.

2. The Commission refered clearly in its letter of 20 July 2001 o a random sample of projects, and not to an arbitrary sample.

As stated before, the Commission has always stressed the importance of taking a sample of approximately 200 projects for the period 1994 to 1996. However, in view of the conclusions of the aforementioned accountants' report, the Commission based its action on the information available.

(1) Commission Regulation (EC) No 438/2001 of 2 March 2001 laying down detailed rules for the implementation of Council Regulation (EC) No 1260/1999 as regards the management and control systems for assistance granted under the Structural Funds.