HISTORIC PRESS RELEASE : Anti-Fraud Focus in European Community Report [June 1999]

The press release issued by HM Treasury on 30 June 1999.

Latest developments on anti-fraud measures in the European Community were published today as part of the Government’s annual statement on the EC Budget.

Commenting on the publication of European Community Finances – the nineteenth statement in the series – Economic Secretary, Patricia Hewitt said :

“As in previous years, this Statement clearly sets out the latest key developments and measures to counter fraud and financial mismanagement in the EC.

“We are determined to crack down on fraud at every level within the European Community. That is why we pressed hard, and won agreement for, UK proposals to reform the EU’s anti-fraud system, drawing on a number of strengths of the UK model:

• a strong, independent Head of Fraud investigations, with statutory protection from dismissal, like the independent Comptroller and Auditor General;
• a Head with wide ranging powers to initiate any investigation on his own initiative, with rights of immediate and unannounced access to papers and buildings and to question officials and Commissioners;
• powers matched by responsibility for making recommendations and ensuring speedy follow up when problems are found;
• powers matched by accountability through the Council and the European Parliament to the taxpayer.

“The new European Anti-Fraud Office meets our requirements. The EU fraud buster will be independent, will initiate its own investigations, and will make sure its recommendations are followed up.

“But getting the new Anti Fraud Office in place is only the vital first step. We need thorough reform in Brussels. And it is coming. The Cologne European Council stressed the importance of reform and modernisation of the Commission and of the European civil service, and proposals will come forward soon.”

Details about EC financial management and measures to counter fraud include:

• the European Court of Auditors’ Annual Report for 1997 and Statement of Assurance, published on 17 November 1998;
• the Council’s recommendation to the European Parliament on the discharge to be given to the Commission for its implementation of the 1997 budget;
• details of progress on the major areas of work under the Commission’s Sound and Efficient Management 2000 Programme;
• the 1998 “Fight against Fraud” report;
• the new European Anti-Fraud Office.

The Annual Statement also sets out a breakdown of expenditure and sources of revenue in the 1999 Community Budget, along with details of the UK’s contributions to, and receipts from, the Budget.