92001E2486

WRITTEN QUESTION P-2486/01

by Christopher Heaton-Harris (PPE-DE) to the Commission

(5 September 2001)

Subject: Peace and Reconciliation Fund

Recent reports have stated that the European Union has been funding well-known IRA terrorists through the EU's Peace and Reconciliation Fund.

Has the Commission initiated a formal investigation into the possible gross misappropriation of European Union funds?

Has the Commission suspended payment to these particular organisations until a proper investigation has been concluded?

What steps will the Commission take to ensure that taxpayers' money is properly spent and if it is confirmed that money has been inappropriately allocated, what steps will the Commission take to reclaim the money?

Answer given by Mr Barnier on behalf of the Commission

(8 October 2001)

The Commission assumes that the Honourable Member is referring to an article published in the British edition of the Sunday Times on 26 August 2001 entitled IRA suspects funded by EU grants.

The article names individuals suspected of involvement in terrorist activities who are alleged to number among the beneficiaries supported by European Structural Funds via projects concerning two ex-prisoner groups: Tar Isteach and Coiste Na n-larchimí.

Although the individuals concerned have not been convicted of a terrorist offence, the European Commission has asked the programme management authority on the ground the Special EU Programmes Body to examine the projects concerned. This examination has provided no evidence to suggest that there are irregularities in the administration of European funds. At present there is therefore no basis either for a suspension of payments or for a request for reimbursement of EU funds.

Although the PEACE I programme and its successor, PEACE II, are unique among European interventions under the Structural Funds, they are subject to the same strict set of rules with regard to financial management and control. The Commission has already demonstrated in the past that it will not hesitate to suspend payments where there is evidence of the misuse of European funding. It has the full cooperation of the Special EU Programmes Body in this respect.