Brussels, 07/06/2002 (Agence Europe) - The European Parliament's Committee on Citizens' Freedoms urges plenary to reject the German proposal for a framework-decision relating to the criminal prosecution for fraud in the allocation of public markets. The report by the German Christian-Democrat, Ingo Schmitt regards the legal basis chosen, Article 31 e of the EU Treaty, to be bad. Whereas this article refers to organised crime, terrorism and drug trafficking, fraud in public procurement, however serious, generally has no link with these activities, the rapporteur explains, for whom, this initiative should be attached to Community law relating to the internal market (Article 95 of the EC Treaty), which would also allow the European Parliament to have co-decision. Consulted on the subject, the Committee on Legal Affairs and the Internal Market also concluded that the legal basis was not right. Yet, Ingo Schmitt stresses in the explanatory memorandum that, as to substance, he believes the proposal to be useful. He thus asks both Germany to withdraw its proposal and the Commission "to explore the need to present, if need be" a proposal with the same objectives.
Germany presented this initiative in March 2000, but discussions in the Council's working group never really got off the ground, an expert explains. The proposal provides for each Member state making a criminal offence of the unfair or misleading practice consisting, for a company, in placing in a bid resting on an illegal concerted agreement between companies and accepted by the adjudicating powers against the promise of a direct or indirect advantage, collusion with a person responsible for allocating markets or the secrecy of an agreement. Complicity with or instigation of fraud would also be penalised. The German plan provides for natural persons being able to be sentenced. Ingo Schmitt would also like companies condemned for such acts to be excluded from participating in calls for tender for a certain length of time, and that the same go for the officials involved. It also proposes the creation of a European file of condemnations.