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Brussels launches probe into secret accounts
A widespread inquiry into secret bank accounts and fictitious contracts across the European Commission was launched on Wednesday, amid growing anger at the scale of alleged fraud in the European Unionâs executive. Neil Kinnock, EU administration commissioner, is ordering the Commissionâs most senior officials to answer a "fraud questionnaire" to assess the extent of the problem. The move reflects fears that the "vast enterprise of looting" which fraud investigators found at Eurostat, the Commissionâs statistical arm, may also have occurred in other departments.Members of the European Parliament on Wednesday expressed their concern about the issue and called Romano Prodi, Commission president, to answer questions in September. MEPs accused Mr Kinnock and Pedro Solbes, the commissioner in charge of Eurostat, of failing to heed several earlier warnings about alleged wrongdoing. Some MEPs even called for Mr Solbesâs resignation. Problems were identified at Eurostat by trade unions in 1997, by internal Commission audits in 1999 and 2000 and by Paul van Buitenen, a whistleblower, in 2001, but Mr Solbes said he knew nothing about the scale of the problems until he read newspaper reports in May 2003. You didnât know about it till you read it in the paper? He said: "I canât be blamed or asked to take responsibility for something I didnât know about." Oh, yes you can. Last week Mr Kinnock revealed the "relatively extensive practice" at Eurostat until 1999 of setting up secret and illegal accounts, into which millions of euros are thought to have disappeared. Some Commission officials say the practice, ostensibly to give more "flexibility" in carrying out EU work, was widespread in the 1990s. Mr Kinnock said there was evidence this "utterly reprehensible" practice was continuing and has ordered an immediate inquiry into other Commission departments. He has asked the most senior civil servant in each department to give assurances that all contracts are awarded according to EU law. "Any statements you make can, and will be used against you in a court of law." If the inquiry reveals the practice still exists, it could mean European taxpayers have been defrauded on a large scale, and would place huge pressure on Mr Prodiâs Commission. The last Commission, led by Jacques Santer, was toppled by the parliament in 1999 amid allegations of financial misconduct, and Mr Prodi came in to office promising to clean up the institution with "zero tolerance" towards fraud. The secret bank accounts at Eurostat were set up by Commission officials to hold money paid through inflated contracts to sub-contractors. Mr Kinnock told the parliamentâs budgetary control committee: "If they are discovered [elsewhere], for whatever reason and to whatever degree we will take appropriate action." Mr Kinnock says he has no idea how much money has gone into them, or what happens to it. Check the Swiss banks. Posted by: Steve 2003-07-17 |
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