Aid official is suspended in fraud inquiry

Date: 16/07/1998

By Myles Neligan

THE European Commission announced this week that it had suspended an official suspected of diverting EU humanitarian aid intended for the former Yugoslavia and Africa's Great Lakes region.

The institution has started disciplinary proceedings against the official and has also ordered its anti-fraud unit UCLAF to pass its year-long investigation over to national authorities.

The move follows revelations that a total of 2.4 million ecu intended to implement aid contracts signed in 1993 and 1994 is unaccounted for.

"There is some money missing," confirmed a spokeswoman for Anti-fraud Commissioner Anita Gradin. "We have handed the matter over to a national police force because investigations of this kind go beyond UCLAF's remit."

Gradin said in a statement that while the matter had been under investigation since last autumn, it was only in the last week that UCLAF's suspicions became strong enough to warrant full legal proceedings.

Since the official's work contract was signed in Luxembourg, it will now be up to the Grand Duchy's state prosecutor's office to pursue the investigation. The Luxembourg authorities have not yet given any indication of how long it will take them to complete their work.

ECHO, which has provided 3.5 billion ecu in humanitarian assistance to developing countries since it was set up in 1991, is Europe's largest aid donor. Most of its aid is channelled through non-governmental organisations which implement humanitarian projects on the ground.

"Everyone is dismayed that something like this could happen, though the allegations of fraud are as yet unproven. We hope the investigations will reach a rapid conclusion, and we will take whatever action is necessary," said a member of Humanitarian Aid Commissioner Emma Bonino's staff.