David Sumberg MEP
Date: 01/10/2003
KINNOCK FAILS TO STAMP OUT EU SLEAZE
'No one is to blame'. This is the cry of the European Commission as every day brings forth new allegations of corruption in the Eurostat scandal. Eurostat is the organisation responsible for collecting and selling statistics and data about the EU. However, it appears that for years, certain officials at the head of the organisation were issuing padded contracts and running two sets of accounts. Clients would be charged an inflated contract fee on the one hand, while a much lower fee was recorded in a second set of accounts. The surplus was skimmed off the top and placed in secret bank accounts to which the Commission's Internal Audit Service had no access. Apparently over three million Euros was illegally accumulated in this way, although the investigation by OLAF - the EU's anti-fraud office -is far from over and more may yet be revealed. Indeed OLAF is investigating claims that the money was spent on an equestrian centre, a volleyball team, private dinners and parties and frequent travel under false pretences.
Mr Yves Franchet, the Director General of Eurostat and two other senior Eurostat officials have been implicated in the scandal, although all three claim the secret bank accounts were used for official purposes and not for personal enrichment. However, in typical Commission "no one is to blame" fashion, no-one has been suspended. Instead, Mr Franchet and his two colleagues have been temporarily transferred as 'advisers' to the Department of Commissioner Neil Kinnock, where they will remain for the duration of the investigation. A Commission spokesman even emphasised that "These transfers are in no way a disciplinary measure" adding it would assist the men in "preserving their reputation and their rights of defence." It is a great irony that Neil Kinnock is, as Vice President of the European Commission, the Commissioner responsible for rooting out corruption. He is, of course, a survivor from the notorious Santer Commission which had to resign in 1999 'en masse' amid allegations of widespread corruption and sleaze. In light of this scandal Mr Kinnock's position has now become so untenable he should resign.
But in true Kinnock style he remains unruffled by the affair. Indeed, while staff allegedly involved in corrupt practices receive his protection, those, like former Chief Accountant Marta Andreasen, who blew the whistle on poor accounting standards 18 months ago, are kicked out! Another whistle blower - Dorte Schmidt Brown - even queried the value of work done within contracts for Eurostat and found herself suspended by the Commission. Now the Commission has circled the wagons to protect itself. The Spanish Commissioner - Pedro Solbes - who is responsible for Eurostat, lamely told MEP's that he cannot be blamed because he "knew nothing about the scandal.". Similarly, Budget Commissioner Michaele Schreyer cannot be blamed, according to Commission President Romano Prodi, because the dodgy contracts were issued prior to 1999 when she took office. The fact that both Solbes and Schreyer have failed over four years to uncover the scandal is apparently neither here nor there.
So, no-one is to blame! Despite the preliminary report into the Eurostat scandal claiming that there has been a "vast enterprise of looting" and despite the assurance from Romano Prodi that he would initiate a policy of zero tolerance on corruption in his Commission,. no Commissioner will be held to account. President Prodi does not intend to call for any resignations. In fact, new allegations of fraud have just emerged which may shake him out of his complacency.
OLAF received a tip off earlier this month alleging massive theft and malpractice by officials in the technology directorate. Apparently Neil Kinnock received a confidential letter claiming that millions of Euros had been skimmed off a series of contracts with Greek companies in the childcare and health areas. The anonymous author of the letter claimed that the alleged abuses at Eurostat paled into insignificance by comparison with this latest scandal. With so many storms swirling around him, Neil Kinnock had no option but to ask OLAF to investigate the anonymous claims.
Meanwhile Romano Prodi has assured MEPs that he is satisfied that the Eurostat abuse is an isolated case! In a farcical investigation he authorised a task force to send questionnaires to top officials in every Commission department asking them for assurances that no corrupt practices were being concealed in their areas of responsibility. Needless to say no-one admitted any wrong-doings! What a surprise!