Brussels, 06/12/2000 (Agence Europe) - Visibly displeased with the way in which renovation of the Berlaymont building is being conducted, the European Commission plans to undertake a series of measures, the most important of which are discussions with Belgian authorities on Community participation in the cost of work in order to ensure that it will not exceed the amount initially decided, and conveyance of the results of the consultant's review to the European Anti-Fraud Office (OLAF). The Commission also hopes to carry out an external audit of all tenders and contracts to date linked to renovation of the Berlaymont, in order to complete the study forwarded to it on 20 November this year by the Ernst & Young consultants firm on renovation, and to analyse where things have gone wrong. The Belgian authorities are also invited to give all relevant matters thorough attention.
The Commission had occupied and rented the Berlaymont building until 1991, when the building had to be evacuated for removal of the asbestos. A protocol agreement had been signed between the Commission, the Belgian State and Berlaymont 2000 SA (a limited company managing the work, held at 70% by the Belgian State and 30% by the banks). The protocol provided for the work to be completed in June 2000. Ernst & Young considers work could now be extended to "beyond end 2002". The protocol also provided for the Commission to become owner of the Berlaymont after 27 years of annual rents amounting to EUR 27 million, which would mainly make it possible to reimburse the cost of renovation (EUR 324 million). Ernst & Young forecasts that costs will be significantly overrun, the Commission has announced. The Commission's return to the Berlaymont building, and hence the purchase of the building, are subject in the protocol to the condition that the Commission is pleased with the financial and technical conditions of the work, it recalls. While stating that it is not using threats, the Commission specifies that, if it does not come to a satisfactory agreement with the Belgian authorities, it will seek "another solution".
Referral to OLAF, justified by "a claim for payment made by a contractor to Berlaymont 2000" that the consultants firm found "suspect", shows that the Commission has suspicion of fraud and suspects prices may have been artificially bumped up. The EuropConstruct consortium, which groups the French company Bouygues and German Strabag, won the contract in 1998 for the site as a whole. Sub-contracting contracts were also signed.
While the protocol provides for the Commission to reimburse the renovation of the building, the cost of removing the asbestos is to be borne by the Belgian State. Initially estimated at the cost of BF 3.57 billion (EUR 88.6 million), a further BF 1.425 billion were finally required.