WRITTEN QUESTION E-2451/01 by Erik Meijer (GUE/NGL) to the Commission. Method of ascertaining and amount of claim for repayment of subsidies for European Social Fund projects in the Netherlands in 1994-1996.
Date: 2001-09-11
Institutions: European Parliament, Provisional data
Subjects: EU control, European Anti-fraud Office, European Social Fund, Netherlands, aid system, financial control, fraud, management, use of aid

16.5.2002

EN

Official Journal of the European Communities

C 115 E/87

Bearing in mind that Member States often regard funds which they receive from the EU as being
4.
available for use at their discretion within the sector to which they are allocated, will the Commission
define more clearly the respective responsibilities for such funds, making it absolutely clear to all parties
concerned in advance whether the funds are available for uses for which the Member State concerned
bears ultimate responsibility or whether they are earmarked exclusively for a use which involves the
European Union independently monitoring how the funds are used and accounted for because it bears
ultimate responsibility itself?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(17 October 2001)

According to article 23, section 1 of Council Regulation (EEC) No 4253/88 (1) the Member State is, in

1.
the first instance, responsible for the correct use of the Structural Funds.

2.
The Commission, with its ultimate responsibility, has always the possibility to go back to the
Member State when evidence arises which challenges the proper use of the money. If this is the case a
financial correction has to be made which can lead to a repayment.

3.
The Commission must be able to reclaim money during and after the end of the programming
period if evidence arises that challenges the proper use of money. For the period 2000-2006 the payment
system has changed substantially. There are no longer advances from the Commission to Member States
except for a 7 % lump sum paid at the beginning of the period. The Commission reimburses only real costs
once they have been incurred and certified by the Member State. This new set of rules should avoid any
excessive repayments.

4.
The Structural Funds Regulation (2), discussed and adopted by the Member States, is clear about the
responsibilities of the Member State and the Commission. The amount of money granted under the
Structural Funds Regulation is exclusively earmarked for the purposes laid down in the Structural Funds
regulations and the Programming Documents.

(1) Council Regulation (EEC) No 4253/88 of 19 December 1988, 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, OJ L 374,
31.12.1988.

(2) Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the Structural Funds,

OJ L 161, 26.6.1999.

(2002/C 115 E/091)

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.

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

Article 24 of

2.
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?

C 115 E/88

Official Journal of the European Communities

EN

16.5.2002

In the region of Limburg, strong evidence has recently come to light that ESF funds have been used
3.
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?

In view of the numerous indications of irregularities, possible mismanagement and fraud, and their

6.
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.

The controls of ESF expenditure in the Netherlands that were carried out by the Commission are sent

2.
direct to the Honourable Member and to the Parliament’s Secretariat.

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

A control mission to Zeeland was carried out and the draft report was sent to the Dutch authorities
4.
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.

The controls referred to under 4. concern the years after 1996. They should have no bearing on the

5.
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.