WRITTEN QUESTION No. 3598/97 by Ernesto CACCAVALE to the Commission. Misuse of cooperation funds
Date: 1997-11-13
Institutions: CACCAVALE, European Parliament
Subjects: Angola, EU control, EU financing, European Commission, Italy, non-governmental organisation, project evaluation

16. 6. 98

EN

Official Journal of the European Communities

C 187/25

(98/C 187/38)

WRITTEN QUESTION E-3598/97

by Ernesto Caccavale (UPE) to the Commission

(13 November 1997)

Subject: Misuse of cooperation funds

In 1993 approximately LIT 6 billion was allocated by DG VIII to CESTAS, an Italian NGO based in Bologna, for
urgent health work in Angola.

There is still no evidence of CESTAS working in Angola, although it would seem that in 1993 and 1994 a large
amount of expenses for extravagant (cid:145)fact-finding(cid:146) missions in that tormented country were authorized by the
directors of the NGO for its members.

Furthermore, it seems that the NGO had a number of problems with the Cape Verdean authorities (in Africa) in
1994 and 1995, since it allegedly failed for months to administer a project to combat AIDS, which was also
commissioned and financed by the Commission(cid:146)s DG VIII.

Can the Commission:

1.  shed light on these events without delay;

2.  consider the possibility of suspending any funding which proves to have been wrongfully granted;

3.  organize careful on-the-spot checks to ascertain whether EU funding is being used properly and efficiently;

4.  assess whether there have been instances of (cid:145)favouritism(cid:146) on the part of DG VIII and/or casual management

by the officials responsible for on-the-spot checks?

Answer given by Mr Pinheiro on behalf of the Commission

(8 January 1998)

The Commission rejects any allegation that it shows favouritism in granting funds to NGOs for implementing
development cooperation.

It  systematically  evaluates  the  merits  of  projects  and  programmes  presented  by  European  NGOs,  notably  as
regards  their  compatibility  with  the  development  strategies  of  the  countries  concerned,  before  any  financing
decision  is  taken.  It  closely  monitors  project  execution  both  at  headquarters  and  in  the  delegations,  with
continued funding depending on strict implementation of the project even in sometimes difficult conditions.

On-the-spot project evaluation and supervision missions are carried out professionally and independently of the
local authorities and NGOs concerned. Financing is suspended immediately if any irregularity is discovered. The
last tranche is granted only on the basis of an implementation report and verification that expenditure has been
made as planned in keeping with the rules on the utilisation of the funds.

The final tranche of the Cestas health project in Angola has not yet been paid. The Commission established that
the NGO was having difficulties implementing the project in this strife-riven country. The NGO was asked to
reorient the project and the measure has been extended.

As regards the Cestas project in Cape Verde, the health ministry complained about the delay in the supply of
equipment. The dispute was settled in 1993 following an evaluation mission. The Cestas project came to an end
in 1994 once all the services forming part of the contract had been performed. It is now being continued directly
with the health education unit of the relevant ministry.

(98/C 187/39)

WRITTEN QUESTION E-3604/97

by Franz Linser (NI) to the Commission

(13 November 1997)

Subject: Trans-European networks

Preparations for enlargement to the East appear to have led to a shift in TEN priorities in an East-West direction.
Attention was drawn to this fact at the European Transport Conference held in Helsinki from 23 to 25 June 1997.

The Brenner base tunnel project has again been classified as a priority TEN project by the EU.