Strasbourg, 14/03/2001 (Agence Europe) - On Wednesday, with the adoption of the report by Herbert Bösch (Social Democrat, Austria) on the 1999 Annual Report by the Commission on the protection of the EU's financial interests, the European Parliament calls for rapid and transparent elucidation of the serious cases of fraud: - large-scale traffic of 100,000 tonnes of adulterated butter; - irregularities in the payment of premiums for crops of flax in Spain. On the other hand, an amendment calling for explanations concerning presumed fraud in the olive oil sector (the addition of hazelnut oil and olive oil sold under the denomination "virgin", "extravirgin" and "olive oil") has been rejected.
"In the interest of public health", the EP asks to "have access to documents held by the Anti-Fraud Office (OLAF) on the analysis of the composition of adulterated butter, and also the reports concerning the flax affair and on the outcome of the Commission's representation in Stockholm. MEPs also stress the need to rapidly conclude with Switzerland an agreement to fight fraud on "high risk products" (cigarettes, alcohol, precious metals, electronics). Due to the national differences that exist regarding the notification of irregularities and fraud, the Commission is expected to develop a clear methodology, placing the irregularities in categories according to the degree of gravity in order to obtain a precise picture of the magnitude and the nature of the problems to be resolved. The EP notes that the protection of the financial interests has not improved because of blocking in the recruitment of OLAF staff and the lack of independence on the part of its president. In order to make up for these deficiencies, it again invites the Commission to present a proposal by 1 June next on the rapid creation of a European prosecutor.
During the debate, Herbert Bösch, who remained relatively moderate in his remarks, did not expand his remarks to cover the flax and butter affairs. He pointed out that the number of cases of fraud had not declined and that it was difficult to punish those responsible. Mr Bösch does not want out and out enlargement of OLAF powers but calls on the Commission to show proof of "courage to take a step in the direction of creating a European prosecutor", who, initially (without amending the Treaty), would have authority limited to the fight against fraud within the institutions. Gabriele Stauner (member of the Bavarian CSU) was far more virulent: the Commission should no longer hide behind the interests of certain firms, she said, deploring the absence of reform in disciplinary procedures and of anything new concerning the independence of OLAF. She again denounced the "hasty" framework agreement of 6 May 1999 (Ed.: she is one of those who challenged the validity of this agreement before the Court of Justice).
Portuguese Socialist Paulo Casaca returned to the case of adulterated butter imputed to the "mafiosi criminal networks". In his view, this is the "most important fraud" to the detriment of the Community budget. "How is it possible for fraud of such magnitude to go on for thirteen years involving such large amounts?" asked Mr Casaca. Jan Mulder (Liberal, NL) justified the amendments made by his group regarding a prosecutor "with limited powers", the distinction between fraud and irregularity, and access to OLAF documents. Belgian Green member Bart Staes regretted that the ghost of nationalism haunts the corridors of the EP "for every new case of fraud". He insisted on the autonomy of the director of OLAF. Furthermore, he stressed that Member States have cooperated well by rallying to the complaint filed by the Commission against American tobacco manufacturers. Finnish Esko Olavi Seppänen (United Left) established a link between the responsibility of certain members of the Commission (from Delors to Prodi) in the Fléchard affair and the vote for Commission discharge, unlike Anne Ferreira (Socialist, France), who considers that this affair should no longer be at the heart of the procedure. Rijk van Dam (Europe of Democracies and Diversities, NL) called on the Commission to put pressure on Member States to clarify certain cases of fraud. He recalled that his country no longer receives money from the European Social Fund since the discovery of embezzlement. He recommended the establishment of a "black list" of firms involved.
Commissioner Michaele Schreyer replied, regarding access to documents, that the OLAF president himself decided on advertising the work done by his office in the respect of the principles of data protection and inquiry confidentiality. In response to a question put by the chair of the Committee on Budgetary Control Diemut Theato (EPP, Germany) on the convention relating to the protection of the EU's financial interests (still not ratified by Belgium, Luxembourg and Ireland), Ms Schreyer specified that the Commission was to present a proposal of directive to set out the definitions given in this convention, mainly those on fraud and sanctions.