Brussels, 03/02/2004 (Agence Europe) - At the request of Commissioner Michaele Schreyer, the European Commission decided on Tuesday to tighten up its "early-warning system" against fraud. This system, which was set up by request of the European Parliament in 1997, aims mainly to reduce the risk of awarding contracts or subsidies to third parties who should be excluded under the Financial Regulation's rules, in cases such as bankruptcy, serious professional misconduct, or conflict of interests. It also blocks new budgetary commitments in favour of these bodies, flagging up companies and individuals found guilty of fraud, administrative errors or irregularities, to the detriment of the EU budget.
By virtue of the new decision, the Commission will be obliged to exchange information on these entities with the other institutions of the Community, and with Community agencies and third countries which manage Community funds or other funds, like the European Development Fund. The Commission may extend the system to cover wrongdoings, outstanding recoveries, fraud, and ongoing investigations by OLAF or the Commission's Internal Audit service. The decision also intends to ensure that the Commission's early warning system fulfils the obligations under the 2001 regulation on the protection of individuals with regard to the processing of personal data. All the new elements of the system should be up and running by 1 May 2004.