EU Anti-Fraud Office Under Fire

HONOR MAHONY
01.03.2010

EUOBSERVER / BRUSSELS – The EU’s anti-fraud office’s failure to follow correct procedure for nominating its new chief could nullify its current investigations, risking million of euros in EU funds, MEPs have warned.

The Olaf rulebook: The European Parliament and Commission lawyers disagree on the Ilett appointment.

The situation has arisen following the death last month of Franz-Hermann Bruener, the head of the office (known as Olaf), set up 11 years ago to keep an eye on how EU money is being spent.

To keep the investigative body from remaining headless, Mr Bruener’s deputy, Nicholas Ilett, was appointed by the European Commission to take over until a permanent replacement could be found.

But the interim solution has caused an inter-institutional ruckus: The parliament’s legal service says the temporary Ilet appointment goes against procedural rules, which, they note, require the assent of both MEPs and member states.

“This person has to be appointed inter-institutionally because he has to be independent,” German centre-right MEP Ingeborg Graessle told this website. “He opens the investigation, he closes it, he gives information to the member states.”

According to the German deputy, this means that all of the anti-fraud work that Olaf does from the moment of Mr Ilett’s appointment until a permanent replacement is found may be challenged before the European Court of Justice on the basis of this legal technicality.

Suggesting the court has a “rather formulaic approach” to such cases, Ms Graessle said: “I do not want to put in danger the fight against fraud” and outlined a scenario in which an investigation into a mafia organisation is declared void because of the legal liability.

The cases Olaf looks into run from money for fraudulent projects, to embezzlement, to bribe-paying and murky tendering processes. Over 3,000 cases have been opened since 1999. In Olaf’s latest report, for the year 2008, some €783 million was considered affected by financial irregularities. Read more…

Related posts:

1. Anti-fraud office targets EU agencies VALENTINA POP 15 July 2010 EUOBSERVER / BRUSSELS – The...
2. E.U.’s ‘anti-fraud’ department destroy’s career of British consultant through scurrilous, unsubstantiated allegations Private Eye Issue 3-16 April 2009   OLAF, the EU’s...
3. Marta Andreasen MEP – Brussels laid Bare, Financial Fraud within the European Union www.redicecreations.com We have former European Commission Chief Accountant and current...
4. Scientologists convicted of fraud news.bbc.co.uk A French court has convicted the Church of Scientology...
5. Three Britons charged over €3m carbon-trading ‘carousel fraud’ guardian.co.uk • Belgium alleges VAT scam over carbon emissions permits...
6. EU proposes direct access to taxpayer databases www.expatica.com Allowing cross-border access to all taxpayer databases will help...
7. Swede on trial for human smuggling in Ethiopia www.thelocal.se 9 Jul 2010 The trial of a Swede indicted...
8. London journalist attacked, investigating voting fraud www.thelondondailynews.com 04 May, 2010 Jerome Taylor kicked and beaten during...
9. Unlawful anti-terror powers planned for use during 2012 Olympics Adam Fresco and Fiona Hamilton www.timesonline.co.uk February 8, 2010 Police...
10. High Court grants 72 possession orders in last eight weeks Fiona Gartland www.irishtimes.com SEVENTY-TWO orders for possession of property have...