OF A VALID CHECK ON THE OPERATIONS OF THAT ORGANIZATION .
25 IT IS COMMON GROUND THAT AT THE BEGINNING OF 1984, FOLLOWING CHECKS CARRIED OUT BY THE GUARDIA DI FINANZA ( REVENUE ENFORCEMENT SERVICE ), A COMPLAINT WAS MADE TO THE JUDICIAL AUTHORITIES ALLEGING THAT THE OFFICERS OF THE PRODUCERS' ORGANIZATION CONCERNED WERE GUILTY OF FRAUD AND OTHER OFFENCES INASMUCH AS THEY HAD UNLAWFULLY OBTAINED, OR ATTEMPTED TO OBTAIN, THE COMMUNITY AID PROVIDED FOR WHERE FISHERY PRODUCTS WERE WITHDRAWN FROM THE MARKET DURING THE PERIOD FROM 1978 TO 1982 . THE MEMBERS OF THE CONTROL BOARD SET UP AT LOCAL LEVEL TO CHECK THAT THE PRODUCTS AT ISSUE WERE GENUINELY WITHDRAWN FROM THE MARKET WERE ALSO CHARGED .
26 THE ITALIAN GOVERNMENT CLAIMS THAT THE COMMISSION WAS WRONG NOT TO PERMIT THE CONTESTED EXPENDITURE TO BE CHARGED TO THE EAGGF FOR TWO REASONS . FIRST OF ALL, NO IRREGULARITY ON THE PART OF THE ITALIAN ADMINISTRATION OR STATE BODIES WAS UNCOVERED SINCE THE ITALIAN REPUBLIC IS NOT LIABLE FOR THE FRAUDULENT CONDUCT OF THE PERSONS RESPONSIBLE FOR MAKING THE CHECKS . SECONDLY, THE ACCUSED IN THE DOMAR CASE DENIED THE FACTS ON WHICH THE CHARGES ARE BASED AND PLEADED NOT GUILTY IN THE CRIMINAL PROCEEDINGS CURRENTLY PENDING . IT IS NOT THEREFORE POSSIBLE TO RELY ON THEIR NEGLIGENCE SINCE THERE HAS NOT YET BEEN ANY DEFINITIVE JUDICIAL FINDING ON THAT SUBJECT .
27 THOSE ARGUMENTS CANNOT BE ACCEPTED . FINANCIAL COMPENSATION FOR THE WITHDRAWAL FROM THE MARKET OF FISHERY PRODUCTS CANNOT BE CHARGED TO THE EAGGF IF THE PRODUCERS' ORGANIZATION HAS NOT BEEN SUBJECT TO THE CHECKS PROVIDED FOR UNDER COMMUNITY RULES . ARTICLE 5 OF COMMISSION REGULATION NO 2062/80 OF 31 JULY 1980 ON THE CONDITIONS AND PROCEDURE FOR GRANTING OR WITHDRAWING RECOGNITION OF PRODUCERS' ORGANIZATIONS AND ASSOCIATIONS THEREOF IN THE FISHING INDUSTRY ( OFFICIAL JOURNAL, L*200, P.*82 ) PROVIDES THAT "THE MEMBER STATES SHALL EXERCISE CONTINUOUS SUPERVISION OF THE OPERATION OF RECOGNIZED PRODUCERS' ORGANIZATIONS AND ASSOCIATIONS", WITH PARTICULAR REGARD TO COMPLIANCE WITH THE CONDITIONS FOR RECOGNITION OF SUCH ORGANIZATIONS AND THE MARKETING RULES WHICH THEY ARE REQUIRED TO LAY DOWN .
28 UNDER THOSE CIRCUMSTANCES, THE QUESTION IS NOT WHETHER FRAUDULENT BEHAVIOUR ON THE PART OF DOMAR CAN BE SHOWN TO HAVE EXISTED AT THE TIME AT WHICH THE CONTESTED DECISION WAS ADOPTED, BUT WHETHER THE ACTIVITIES OF THAT ORGANIZATION WERE SUBJECT TO CONTINUOUS SUPERVISION . HOWEVER, IT CAN BE SEEN FROM THE FILE THAT THE SUPERVISORY COMMITTEE SET UP FOR THAT PURPOSE BY THE ITALIAN GOVERNMENT DID NOT FUNCTION AND THAT NO OTHER FORM OF SUPERVISION WAS EXERCISED .
29 THUS, THE COMPLAINTS CONCERNING FINANCIAL COMPENSATION FOR THE WITHDRAWAL FROM THE MARKET OF FISHERY PRODUCTS CANNOT BE ACCEPTED .
30 IT FOLLOWS FROM ALL OF THE FOREGOING CONSIDERATIONS THAT COMMISSION DECISION 85/459 ON THE CLEARANCE OF THE ACCOUNTS PRESENTED BY THE ITALIAN REPUBLIC IN RESPECT OF THE EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND, GUARANTEE SECTION, EXPENDITURE FOR 1980, MUST BE DECLARED VOID IN SO FAR AS