EU building in corruption probe

Date: 27/11/1997

By Rory Watson

BELGIAN judicial authorities are investigating allegations of corruption relating to the construction of the European Parliament's prestigious new Brussels headquarters.

State prosecutor Benoît Dejemeppe has confirmed that the criminal investigation "is focusing in part on the possible payment of secret commissions to intermediaries with a view to securing contracts".

Dejemeppe wrote to the Parliament's President José María Gil-Robles in July informing him of the inquiry, which centres on the possible misappropriation of funds belonging to Belgian public works contractors involved in the construction of the 1-billion-ecu complex.

"It may therefore call into question the actions of individuals (officials or politicians), some of whom enjoy immunity," he explained.

But a Parliament spokesman confirmed this week that the institution was not involved in the inquiry and insisted that no allegations of malpractice had been levelled at either MEPs or Euro-officials.

In parallel to the Belgian investigation into one of Europe's largest construction projects, the Parliament itself has recently taken steps to tighten up its own internal financial procedures.

Its Secretary-General Julian Priestley has pointedly informed all officials empowered to authorise expenditure that they can only do so after receiving prior approval from the institution's financial controller.

He specifically warned that any failure to follow the clear financial rules would make officials "liable to disciplinary action and, where appropriate, to payment of compensation".

His warnings came after UK Socialist MEP John Tomlinson tabled a highly critical report earlier this year highlighting "multiple breaches of the financial regulations and of EU law, notably in regard to calls for tender procedures".

It itemised 17 instances where the financial controller was considered justified in refusing to approve the expenditure because parliamentary officials had not complied with correct procedures when giving the go-ahead for spending on the new building.

Tomlinson pointed to a "wide range of breaches of correct procedures", several botched calls for tender, breaches of the law, distortion of competition, suspected "malfeasance" and a "chaotic" series of errors which he maintained had all damaged the Parliament's image and reputation.

Gil-Robles, who received a full audit from outside accountants before formally accepting the new premises, is now determined to draw a line under the long-running building saga, and Tomlinson this week welcomed the tough stance taken by Priestley.

"We now have a new broom sweeping clean and I am confident that the combination of the president and the secretary-general will ensure that the rules are respected," he said.

Details of the Belgian investigation emerged this week - just as parliamentarians and their staff were taking possession of their new offices in the sprawling Léopold complex - after Irish Green MEP Patricia McKenna had criticised the costs involved.

McKenna wrote to Gil-Robles last week denying any suggestion that she had implied members or parliamentary officials had been involved in criminal activity, but adding that "the surrounding issues remain grave and warrant thorough investigation".

"I would like to see the Parliament commission an independent report from an outside body which would give a complete breakdown of all the costs involved in the building and present them in a clear and understandable way," she explained.

McKenna suggested that the independent assessment should establish why, for instance, some costs increased by 15.5% when a contract was altered after replies to a call to tender had been opened and why the Parliament's financial controller or his representatives were not present, as required by the institution's rules, when sealed bids for a contract were opened.

Belgian judicial authorities are investigating allegations of corruption relating to the construction of the EP's new Brussels headquarters.