| Author (Person) | Bounds, Andrew |
|---|---|
| Publisher | Foreign Policy Centre |
| Publication Date | 2006 |
| Content Type | Report |
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European aid to Iraq came under scrutiny yesterday as legislators demanded answers from Benita Ferrero-Waldner, the European Union’s external affairs commissioner, about the use of millions of euros for reconstruction. The MEPs have threatened to delay signing off the bloc’s 2006 accounts unless €200m funnelled through multilateral funds can be accounted for. International Reconstruction Fund Facility for Iraq The only time parliament refused to approve the annual accounts, in 1999, it brought down the scandal-ridden Commission of Jacques Santer. While such an outcome is highly unlikely this time, the dispute undermines Brussels’ quest to clean up its financial act. Ms Ferrero-Waldner, in a special hearing with MEPs on the budgetary control committee, said that because the money is put into a central pot administered by the United Nations and the World Bank it is not possible to break down where every cent went. However, MEPs says that violates the bloc’s financial rules, which state that all recipients must be identified. ”Is it unfair that I want to know that if they claim to have built a school where that school is?” said Dan Jorgensen, a Danish Socialist who is drawing up parliament’s report on the spending. “We have some very simple questions that have not been answered.” Ms Ferrero-Waldner said that there was no evidence any of the money had been misused. Iraq was one of the most dangerous places in the world and it was more efficient and safer to channel money through the International Reconstruction Fund Facility for Iraq, than spend it directly. The Commission had given €818m to the fund between 2003-7. It contributed between a fifth and four-fifths of projects so it was not possible to point to specific though hundreds of health centres and schools had been repaired and 82m school books provided. Some 100 UN staff have been killed in Iraq since 2003. The former Austrian foreign minister did agree to considering direct EU operations and to press the UN to give more details of its spending. “We have urged the UN to change its reporting system,” said her spokeswoman. MEPs are also unhappy about errors in the €32bn annual regional budget. The EU’s auditors found that 12 per cent – €4bn – had been paid out wrongly. The funds are destined for infrastructure and training projects, mostly in poorer areas. Much of the blame lies with national governments who give out the money but do not send the commission audits of its spending. After Danuta Hubner, the regional affairs commissioner, wrote to governments last month demanding an annual statement of spending most obliged. The recalcitrants, Germany and Austria, have been given a month before facing possible suspension of payments from Brussels. She was also summoned by the committee yesterday. The Netherlands this month voted against approving the accounts over the errors. The parliamentary committee will decided next month whether to postpone its own vote until more information is provided. Copyright The Financial Times Limited 2008 |
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| Source Link | http://fpc.org.uk |
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| Subject Categories | Economic and Financial Affairs |
| Countries / Regions | Europe, Middle East |
