WRITTEN QUESTION E-1071/00

by Joan Colom i Naval (PSE) to the Commission

(4 April 2000)

Subject: Effectiveness of OLAF in combating ESF fraud in Catalonia

In recent years there have been repeated accusations of suspected fraud and irregularities in the management of the European Social Fund (ESF) in Catalonia, Spain. According to some sources, questionable activities undertaken in the 1990s could account for close to EUR 100 million. In the answers it provided to written questions on these matters during the last parliamentary term, the Commission stated that it was unable to report on the results of UCLAF activities, since they were sub judice.

Reports of the misappropriation of 9 million of Community funds, primarily from the ESF, by the Catalan authorities have resurfaced in the Spanish media in recent days. Some of those already implicated in previous cases are said to have been involved.

The Commission has failed to give details of the outcome of the investigations and activities conducted by UCLAF or by its successor, OLAF, in spite of the ample time it has had in which to do so, the action taken by the Spanish police, and the fact that the courts have ordered international letters rogatory.

Can the Commission say what conclusions or results, if any, have emerged from UCLAF or OLAF activities? Does it believe that OLAF's work on these cases can be described as effective? What shortcomings as regards legislation or funding are preventing OLAF from fulfilling its remit promptly?

Answer given by Ms Schreyer on behalf of the Commission

(22 June 2000)

The Honourable Member is asked to refer to the Commission's answer to his Written Question P-258/99(1), in which it stated that the Task Force for Coordination of Fraud Prevention (UCLAF) had offered to cooperate with the Spanish judicial authorities.

Since then, the Commission has been in regular contact with the Spanish authorities, both at central government level (UAFSE the unit responsible for administering the ESF) and in Catalonia (Directorate-General for Employment), while taking on board reports appearing in the press. The information received by the Commission through these channels has proved insufficient or even incomplete. Nevertheless, the Commission is still in contact with the above-mentioned authorities.

The European Anti-Fraud Office (OLAF)(2) has informed the Commission that, having received no reports under Commission Regulation (EC) No 1681/94 of 11 July 1994 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the structural policies and the organisation of an information system in this field(3), it recently reminded the Spanish authorities of the Member States' obligation to report all fraud cases, including, where appropriate, new allegations appearing in the press.

OLAF has also informed the Commission that the Spanish authorities have not requested its assistance. Under Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities(4), referred to in the new legislation on the establishment of OLAF, the Commission must take account of the inspections in progress or already carried out by the Member State, on the basis of its legislation, in respect of the same facts with regard to the economic operators concerned.

(1) OJ C 348, 3.12.1999.

(2) OLAF succeeded the Task Force for Coordination of Fraud Prevention on 1 June 1999. See the legislation published in OJ L 136, 31.5.1999.

(3) OJ L 178, 12.7.1994.

(4) OJ L 292, 15.11.1996.