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Europe Daily Bulletin No. 8510
Contents Publication in full By article 11 / 40
GENERAL NEWS / (eu) eu/eurostat

Commission terminates contracts with Planistat and broadens internal investigation while waiting Olaf reports

Brussels, 23/07/2003 (Agence Europe) - Within the affair involving embezzlement and double accounting methods at Eurostat, the European Commission on Wednesday, decided to terminate the contractual relations it holds with Planistat (it decided to suspend them on 9 July). In light of information provided by the internal auditing service (and while waiting for OLAF reports), the commission has also terminated contracts with three other entities: CESD, 2SDA and TES. Given that it appears that the problems are linked to outsourcing and subcontracting, the Commission has launched a probe (the results of which will be known in October) into all the contracts Eurostat had with the different companies. The Commission spokesperson, explained that, "We will see whether other contract with other companies also have to be terminated".

The Commission spokesperson also stressed that the mainstay of Eurostat activities would not be affected by the decision that were taken on the termination of contracts signed with these four companies but admitted that Commissioner Pedro Solbes could be prompted to revise the Eurostat work programme. The spokesperson refused to comment on the possibility of any resignations. He explained that at this stage, "it was pure speculation", adding that Parliament still had to decide when and under what form it was going to ask Mr Prodi to explain away the affair.

On the same day, the Commission also took other decisions to ensure the follow-up to the investigation:

Commissioner Neil Kinnock and Commissioner Michaele Schreyer sent a letter to their colleagues to invite them to obtain from their Directors-General confirmation that no irregular financial envelopes exist. The letter also reminds Commissioners of the decision of 9 July concerning the dialogue which should take place between them and their Directors-General with regards to the results and follow-up of audits carried out within the services;

Eurostat directors who were transferred on 9 July will be kept on as advisers, while the situation of the Heads of Unit is investigated. Mr Kinnock, and Ms Schreyer will transfer Heads of unit to other functions should the situation warrant it. The situation of Directors and heads of unit will be reviewed in the light of the report which the Task Force Eurostat (TFES) should submit to the Commission on 29 September( TFES tasks, currently carrying out together with the interviews of Eurostat Heads of unit, will focus on analysing the financial circuits within Eurostat, arrangements for handling day to day contractual relations, and the corrective actions decided by Eurostat management,);

the Commission will furthermore provide staff to OLAF to help out carry its investigations. These staff will be selected with the approval of OLAF, and have the same duties as OLAF staff. The Commission will also send OLAF a code of conduct for improving the information flow between the two parties. OLAF will have to approve this draft before it can be used.

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