Anti-fraud unit’s powers boosted

Date: 14/05/1998

By Simon Coss

THE European Commission will take the next step in beefing up the powers of its anti-fraud unit before the end of this month.

The move comes just weeks after the unit, known by its French acronym UCLAF, changed its status from a service in the Commission's secretariat-general to a quasi-independent task force.

This means that UCLAF will be able to carry out investigations into fraud against the EU budget with a greater degree of autonomy than in the past. Danish head of unit Per Brix Knudsen will also have the right to ask Justice Commissioner Anita Gradin to raise specific issues during weekly meetings of the full Commission.

To build on these advances, the Commission is expected to approve a report within the next two weeks. "UCLAF is now a task force and has greater independence than before. The next step will be to define its role more clearly," explained one Gradin aide.

The key aim of the reforms is to ensure that Brussels-based officials are able to work effectively with their opposite numbers in the 15 EU member states.

The vast majority of the cases UCLAF investigates are brought to its attention by national authorities and the Commission has no powers to seize documents or arrest suspects.

"No matter how many officials you have, there is a limit to what you can do from Brussels," said Gradin's spokeswoman Brigitta Gunnarsson.

UCLAF hopes to improve its effectiveness by targeting activities on four key areas identified as particularly attractive to potential fraudsters.

In future, it will pay special attention to how money is distributed through the EU's three big foreign aid programmes: Phare for central and eastern Europe, Tacis for the former Soviet Union and Meda for the Mediterranean.

The decentralised system of dispensing funds, through a complex web of national administrations and private subcontractors, is particularly susceptible to fraud and embezzlement.

UCLAF also plans to set up a specific cell to deal with corruption among EU officials and another to tackle cases based on customs intelligence. In addition, it will work to improve direct links between the Commission and national fraud offices at all stages of investigations.