92002E0329

WRITTEN QUESTION E-0329/02

by Christos Folias (PPE-DE) to the Commission

(12 February 2002)

Subject: Failings in management of 3rd CSF

According to reports in the Greek press, a letter was sent on 4 October 2001 from the Director-General of the Commission's Directorate-General for Regional Policy to the Greek authorities, via the Greek Permanent Representation in Brussels, informing the Greek Government of the outcome of an inquiry carried out in Greece from 11 to 15 June 2001 concerning the 3rd Community Support Framework.

The Commission ascertained that the management authority responsible for the 3rd CSF appointed by the Greek Government whose task is to allocate funding and monitor the progress of the contracts and works, does not in fact function. The Commission also noted a lack of minimum requirements to ensure a structured, transparent and objective system of evaluating proposals. Only general criteria were applied, creating a risk of adopting proposals which are not the best and vague in terms of cost, quality and the timetable for completion of the works.

The Commission discovered that there are no documented instructions or lists for checking the works. Nor is there any detailed and comprehensive contractual agreement between the authority granting the financial aid and the applicant with the result that, even in the case of projects which are under way, legal disagreements may arise which have unfortunate implications for the future of the project and its further funding. There were also failings because the computer system designed to monitor the performance of the contracts was inoperative. The Commission's document notes in conclusion that there is no system of specifications and checks which could guarantee the smooth progress and quality of the projects.

What action will the Commission now take to remedy the shortcomings revealed by its inspectors, and when?

Answer given by Mr Barnier on behalf of the Commission

(8 April 2002)

The document that appeared in the Greek press, dated 4 October 2001, was the transmission to the permanent representation of Greece to the European Union of the main findings, conclusions and recommendations of an audit mission of the Commission that had been carried out between 11 and 15 June 2001 in Greece, in the framework of a series of preventive audits in the Member States for the programming period 2000-2006.

The aim of the preventive audit missions is to contribute in a constructive way to the improvement of management and control systems. The audit mission that was carried out between 11 and 15 June 2001 in Greece, as well as other missions that followed, are part of an ongoing process to raise standards.

In their reply of 14 November 2001 to the Commission's observations, the Greek authorities confirmed that the major part of the auditors' recommendations had been implemented.