OLAF probe finds EESC ‘expenses abuse’

By Martin Banks

Date: 17/02/05

OLAF, the EU's anti-fraud office, has concluded that there is strong prima facie evidence that a member of the European Economic and Social Committee (EESC) fraudulently claimed up to €45,000 in expenses over a six-year period.

The member, who has not been named and strongly denies the allegations, is said to have obtained compensation from his or her member organisation for travel expenses that had been reimbursed already by the EESC.

The findings come just over a month before the European Parliament's budgetary control committee is to be asked to approve a discharge of the committee's accounts for 2003, although the allegations concern earlier years.

OLAF director Franz-Hermann Brüner sent the outcome of his office's inquiry to EESC Secretary-General, Frenchman Patrick Venturini.

Anne-Marie Sigmund, the EESC president, said that due process and the rights of the individual concerned should be respected. But she added that she expected the person in question to "take appropriate action in the best interests of the Committee and the European institutions' public image".

An EESC statement said that the OLAF inquiry made clear that the alleged abuse "would have represented an isolated case". OLAF has forwarded its findings to the Belgian public prosecutor, who will consider whether further action should be taken. The inquiry was prompted by allegations made in a letter. It concludes that:

• There is strong prima facie evidence that the practice of 'double reimbursement' occurred, and;
• the maximum potential sum involved, over a period of six years was €45,000.

The EESC, whose members are drawn from trade unions, employers' groups and other members of civil society, is consulted on EU legislation. Members are not paid a salary by the EESC, but are paid by the organisations that they represent. The EESC does, though, normally reimburse their expenses.

Sigmund said: "The EESC took the allegations very seriously. I have ordered a full internal inquiry and will ensure that the necessary steps are taken to recover any money that may have been misappropriated."

OLAF has made recommendations as to how the committee could amend its rules to make such alleged abuse more difficult. Sigmund added: "I have given orders that OLAF's recommendations be implemented fully and rapidly.

"We have been happy to co-operate full and openly with the OLAF inquiry, a fact it expressly recognises in the report."

OLAF, the EU's anti-fraud office, concluded that there was strong prima facie evidence that a member of the European Economic and Social Committee (EESC) fraudulently claimed up to €45,000 in expenses over a six-year period.
The member, who was not named and strongly denied the allegations, was said to have obtained compensation from his or her member organisation for travel expenses that had been reimbursed already by the EESC.

• Primary Source