WRITTEN QUESTION E-0383/03

by Antonios Trakatellis (PPE-DE) to the Commission

(13 February 2003)

Subject: Substandard work in construction projects in Greece: findings by ESPEL and OLAF concerning measures to tackle the maladministration of EU funds

Bearing in mind the reply given by Commissioner Michel Barnier to my question E-3524/02(1) in which he stated that the European Anti-Fraud Office (OLAF) is notified by the national authorities about issues relating to the maladministration of Community funds and construction projects in which serious shortcomings have been detected that cannot be connected without the project being partly or completely reconstructed (projects known as category III), will the Commission say:

1. How many projects receiving Community funding have so far been included in category III in the EU, how many are located in Greece (the number and percentage) and what are they (please give a detailed table or list of category III projects in Greece)?

2. When was OLAF last provided with information by the Greek authorities, concerning findings by the national council for quality control (ESPEL) about category III projects and what was the content of this information?

3. What is the amount of Community funds allocated to projects in which serious shortcomings have been detected and how can the system for the Community funding if projects be protected from substandard work?

4. Are the Kifisos projects and the Paiania bridge included in category III, and what penalties have been imposed to punish substandard work or shortcomings in projects that have been executed, such as for example the road in Drama which had to be closed after one week owing to shoddy workmanship?

(1) OJ C 155 E, 3.7.2003, p. 163.

Answer given by Ms Schreyer on behalf of the Commission

(22 April 2003)

1. The term category III is not used in Community law. It is used only by ESPEL(1) to refer to cases where serious shortcomings have been detected in the execution of construction projects in Greece cofinanced by the Eurepan Communities and Greece (need for partial or complete demolition). The Greek authorities have notified the Commission of several projects in the Community Support Framework 1994-99 as containing serious shortcomings (irregularities).

The European Anti-Fraud Office (OLAF) has received 41 notifications of serious shortcomings from the Greek authorities under Commission Regulation (EC) No 1681/94 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(2). Under Article 10 of the Regulation the Commission is not authorised to disseminate the information thus notified.

2. The Commission last received information from the Greek authorities in December 2002.

3. The total amount of Community funds for the projects reported to OLAF in the framework of Structural Funds (1994-1999) is EUR 26 841 671,30. At present, the Commission is unable to inform the Honourable Member of the exact amount of Community funds affected by irregularities, as national proceedings regarding a portion of these irregularities are still ongoing.

The Member States are in charge of management and have prime responsibility for the financial control of actions cofinanced by the structural funds. Greece has indicated that it has done what is necessary, including introducing quality control systems (ESPEL) and creating a new audit authority (EDEL). The Commission takes appropriate measures where it is necessary, including the application of financial corrections.

4. The work on the Kifisos, the Paiania bridge and the Drama motorway are not among the category III projects audited by ESPEL and notified to the Commission to date.

(1) The special council for quality control, an independent body commissioned by the Greek authorities to monitor the quality of projects cofinanced by the European Communities and the Greek government.

(2) OJ L 178, 12.7.1994.