Brussels, 03/10/2011 (Agence Europe) - Germany, Spain, France and the United Kingdom are to be called upon to explain the reasons for the low number of reported suspected fraud cases in the field of expenditure under the common agricultural policy, and to report about the way in which the control systems are adapted to target areas with a higher risk of fraud and irregularities. This is stated in black-and-white in the 2010 annual report on the fight against fraud, which was published on Thursday 29 September, in which the European Commission also calls on Finland, the Netherlands and Poland to report more consistently, in particular in relation to personal data on individuals who have committed irregularities and fraud.
In 2010, the overall financial impact of irregularities detected by control systems in the area of expenditure amounts to €1.8 billion (1.27% of the funds allocated), as compared to €1.4 billion (1.13%) in 2009, according to the report. On the revenue side, the overall financial impact of irregularities is also higher than in 2009: €393 million (1.88% of total collected Traditional Own Resources, gross) as compared to €357 million (1.84%).
The figures for 2010 indicate that the number of irregularities reported has increased for all sectors, with the exception of the pre-accession funds and Traditional Own Resources. The main reasons for this increase are the cyclical character of the programming of the Cohesion Funds (closure of the 2000-2006 implementing period) and an overall increase in the volume and speed of the reporting by (most) member states (thanks to the implementation of the improved reporting system, known as the Irregularities Management System, IMS). The member states are required to report irregularities which they have identified and to indicate where these may constitute suspected fraud.
Improvement of anti-fraud systems. Among the global amount of expenditure effected by irregularities, the estimated financial impact of cases of suspected fraud in expenditure increased from €180 million in 2009 (0.13% of allocated funds) to €478 million in 2010 (0.34% of allocations). Certain member states continue to report very low suspected fraud rates. These member states are invited to report on the manner in which the control systems are adapted to target areas where there is a high risk of fraud and irregularities.
Recovery procedures. According to the report, it is necessary to increase the efficiency of the recovery process, particularly in the area of pre-accession funds. The Commission urges member states and countries with low recovery rates to speed up procedures and to seize assets in cases where debts are not paid. It is worth noting that the cohesion policy shows the best recovery rate in the field of expenditure in 2010 (67%).
Agriculture. The reported number of cases of irregularities and suspected fraud increased, as did the related financial impact. The financial impact of suspected fraud was up from €13 million in 2009 to €69 million in 2010. In 2010, Italy and the new member states qualified more than 90% of the reported cases as “suspected fraud”. Certain big-spending member states, such as Germany, Spain, France and the United Kingdom, continue to report a very low number of suspected fraud cases. France did not classify any of its 2010 cases as “suspected fraud”. “This raises the question whether [this] is due (…) to the ability of the control systems in place to detect fraud”, the report states.
Cohesion policy. The reported irregularities affecting cohesion policy represent the largest share of all reported irregularities related to the expenditure part of the EU budget (approximately 70% of cases reported in 2010). In 2010, the increasing tendency concerning both reported irregularities and irregular amounts already noted in the previous year was confirmed. Analysis of those categories of irregularity which are the most reported shows that irregularities most frequently identified in the implementation phase of the project cycle. However, the biggest impact in terms of value (financial impact) occurs in the selection or procurement phase. This is why, the Commission argues, there is a need to review EU rules on public procurement. In terms of reported suspected fraud cases, the tendency highlighted in previous years is confirmed, with Italy, Germany and Poland reporting most of the cases. Germany is the most successful member state in completing procedures for the establishment of fraud in relation to the 2000-2006 period, followed by Poland and Italy. The following countries did not report any such case in 2010: Denmark, France, Malta, the Netherlands, Sweden and Slovenia, which shows that the classification of irregularities and suspected fraud cases in IMS is not yet fully reliable. (LC/transl.fl)