Aid to Slovakia resumes after fraud investigation

Date: 03/05/01

THE European Commission has resumed its pre-accession aid project to Slovakia, after it was suspended following accusations of massive fraud.

Enlargement chief Günter Verheugen has said funding for structural programmes can once again go ahead after the EU executive received the provisional results of an investigation by the Slovak authorities into allegations that money from two Commission aid schemes had been misspent.

Verheugen's spokes-man Jean-Christophe Filori said the findings did "not appear to have had negative implications" for the implementation of the Phare and ISPA (Instrument for Structural Policies for Pre-Accession) aid projects, designed to help central European countries prepare for enlargement. European Voice reported last week that the Commission had halted its aid programme to Slovakia in April after the dismissal of Roland Toth, the country's national aid coordinator.

According to Slovak reports he was forced to stand down after his wife handed documents indicating abuse of his position to police and journalists.

Toth is alleged to have taken kickbacks for awarding multi-million-euro contracts and channelling work to firms which he part-owned as a "silent partner".

He is currently the subject of a Slovakian police investigation; the Union's anti-fraud office OLAF has also launched a probe.

Verheugen insists the move to temporarily resume the aid programme does not mean the matter is closed.

"This decision does not preclude future decisions of the European Commission to safeguard the financial interests of the European communities in Slovakia," said Filori.

"Notably the possible recovery of funds by the Commission in case of proven fraud."

Verheugen said: "This difficult case does not affect the position of Slovakia in the accession negotiations and the assessment of good progress of Slovakia in its integration process."

The European Commission has resumed its pre-accession aid project to Slovakia, after it was suspended following accusations of massive fraud.