Fraud inquiry stalls on immunity request

Date: 13/03/1997

By Rory Watson

A STAND-OFF between the European Commission and the Belgian authorities is raising doubts about the future of a long-running police investigation into allegations of fraud involving millions of ecu of EU funds intended for the tourism industry.

Each is blaming the other for the delay in completing the inquiry into two officials who worked in the Commission's tourism department until their dismissal in 1995. They were subsequently charged by the Belgian authorities almost two years ago, but no date has been set for their trial.

In a bid to break the deadlock, the Commission is being asked to justify its rejection of a Belgian request to lift the immunity of at least a further three senior officials - including the former head of the Directorate-General for tourism (DGXXIII) Heinrich von Moltke - whom the country's authorities wish to question.

British Conservative MEP Roy Perry, who is chairing a separate wide-ranging investigation into the way the EU's finances are controlled, confirmed this week: “I have asked the Commission to explain on what basis it has refused to lift the diplomatic immunity of certain officials.”

The Commission is expected to give a formal response shortly after Easter, but is clearly annoyed at suggestions that it is responsible for thwarting efforts to bring the case to court.

It considered the Belgian request last summer and decided not to lift the individuals' immunity fully. “But we said that the Belgians could certainly talk to the people concerned to discuss certain things. Indeed, the three would like a chance to answer some of the statements being made. Since then we have not heard anything more from the Belgians,” explained a senior source.

The Belgian judiciary is less than satisfied with the Commission's response. “We asked the Commission to lift the immunity of some people. It said we could contact them. We have done that. But there is a difference between talking to someone in their capacity as a witness and as a possible suspect. It is not up to the Commission to tell us how to run an inquiry. We should determine that,” said a Belgian lawyer.

Despite the delays, the Belgian judiciary insisted this week that the inquiry would continue into allegations that the Greek former head of the Commission's tourism unit George Tzoanos, his wife and French official Pascal Chatillon had misappropriated EU funds.

The investigation, which has involved not only the Commission but also authorities in France, Belgium and Greece, has been further complicated by a French request for Tzoanos to be extradited from Belgium.

Meanwhile, the European Parliament is also examining a critical report from the Court of Auditors which argues that internal investigations into allegations of financial irregularities should have been launched earlier.