92002E0507

WRITTEN QUESTION E-0507/02

by Bartho Pronk (PPE-DE) to the Commission

(22 February 2002)

Subject: Report by the Netherlands Court of Audit on management of ESF3 funds by ministries, 1994-1999

On 7 February 2002, the Netherlands Court of Audit published the report ESF3-geld ministeries 1994-1999 (Management of ESF3 funds by ministries, 1994-1999). The Court examined records concerning checks performed on projects in respect of which ESF3 subsidies were granted to the Ministries of Education, Health, Justice and Agriculture between 1994 and 1999. It observed shortcomings in connection with projects managed by all the ministries concerned. The faults noted were inadequate records on participants, hours worked and projects and the quoting of expenses which were not eligible for subsidy.

1. Is the Commission aware of the report ESF3-geld ministeries 1994-1999 of 7 February 2002 by the Netherlands Court of Audit?

2. Does the Commission agree that this report contains relevant new facts which could affect the final settlement of ESF accounts for the periods 1994-1996 and 1996-1998?

3. Was the Commission aware of the role of the Ministries of Education, Justice, Health and Agriculture in connection with the ESF, and of the shortcomings observed by the Netherlands Court of Audit, such as inadequate records on participants, hours worked and projects and the quoting of expenses which were not eligible for subsidy?

4. A number of the ministries concerned likewise carry out projects funded by the ERDF (European Regional Development Fund), EAGGF-Guidance (European Agriculture Guidance and Guarantee Fund Guidance Section) and FIFG (Financial Instrument for Fisheries Guidance). Has the Commission checked whether the same shortcomings as have been observed in connection with ESF funds were also occurring in connection with these other funds and if so, what were its findings?

Answer given by Mrs Diamantopoulou on behalf of the Commission

(17 May 2002)

1. The Commission was made aware of the report by the media and has studied the report, which is published on the Internet site of the Dutch Court of Auditors.

2. The report refers to facts which may affect the final declaration of the European Social Fund (ESF) expenditure for the period 1994-1999 and its financial settlement. The Commission will investigate this matter in collaboration with the Dutch authorities.

3. The ministries of Education, Justice, Health and Agriculture have received ESF support to finance projects. The Commission was not aware of specific irregularities in the management, by the ministries referred to, of ESF projects. The Dutch authorities are in the process of carrying out comprehensive controls of ESF-funded projects, including projects implemented by these ministries. These controls will certainly reveal irregularities if they happened.

4. During the period mentioned, the European Regional Development Fund (ERDF) cofunded Dutch programmes under Objectives 1, 2 and 5b, as well as Community Initiative Programmes (CIPs) such as Urban and Interreg. Unlike the European Social Fund, these programmes were run by the local authorities, generally by provinces or groups of provinces, and not by the ministries to which the honourable member has referred.

The management and control systems and the managing bodies differ according to the Structural Funds concerned, and the level of risk should therefore also be different. As yet, the checks and audits the Commission has carried out on projects cofunded under the ERDF have revealed no irregularities of the kind mentioned by the honourable member and observed by the Dutch Court of Auditors.

The Regional Policy Directorate-General (DG REGIO) proposes to carry out closure audits on a sample of programmes from the period in question, taking into account the risk of this type of shortcoming.

The projects financed by the Guidance section of the European Agricultural Guidance and Guarantee Fund (EAGGF) and the Financial Instrument for Fisheries Guidance (FIFG) are also quite different from those financed by the ESF and the Commission has not, so far, identified such problems as with ESF in relation to EAGGF and FIFG projects. The Commission carries out regular on-the-spot checks in the Member States and for both programmes control visits to The Netherlands are planned in 2002. Furthermore, during the closure of the relevant 1994-1999 programmes, the Commission will carefully examine the follow-up of the shortcomings and irregularities detected, including the relevant findings of the Dutch Court of Auditors.