Kallas launches probe into Luxembourg savings co-op

By David Cronin

Date: 26/05/05

The European Commission is investigating whether some of its officials have become involved in a Luxembourg savings co-operative without seeking the required permission.

Both acting and retired officials of the Commission help run AMFIE, a financial institution for civil servants with international bodies based in Europe.

Siim Kallas, the commissioner for administrative affairs, has confirmed that some of these have been granted authorisation to take part in the co-operative's operations. "A possible failure by certain others to seek appropriate permission is under investigation," he said.

Kallas was responding to a query from Paul van Buitenen, the Dutch MEP and former EU official instrumental in the collapse of Jacques Santer's Commission in 1999. Van Buitenen had complained that the role of EU officials in AMFIE could clash with EU policymaking. He claimed that AMFIE's campaigns to maintain Luxembourg's banking secrecy laws contradicted the Union's efforts against money-laundering.

But Dimitri Argyropoulos, chairman of AMFIE's board of directors, contested this. AMFIE, he said, "provides factual information, nothing more" on issues such as banking secrecy.

Argyropoulos also said that AMFIE itself required EU officials to obtain approval from their institution's hierarchy before taking a place on its board. Among current board members is Martin Littlejohn, a Commission official since 1976.

While AMFIE is registered as a financial institution in Luxembourg, it has a non-profit status and functions as a credit union, the chairman explained. He expressed surprise at van Buitenen's remarks. "We try to help all staff in the European Commission of any grade to live a better life," he said. "I thought that is the sort of action that the European Parliament would be in favour of."

AMFIE's stated objective is to allow its members to invest their savings and borrow funds at preferential rates secured from other financial institutions.

Van Buitenen said that he viewed Kallas' reply as constructive but that he would have to study it more closely after 1 June as he is preoccupied with the Dutch referendum on the EU constitution.

Jacqueline Lejeune, AMFIE's Brussels representative, said she was trying to secure new members for the co-operative in Brussels. She has recently contacted the unions for staff working in EU institutions to arrange presentations on AMFIE's activities.

Article reports that the European Commission was investigating whether some of its officials were involved in a Luxembourg savings co-operative without seeking the required permission. Both acting and retired officials of the European Commission helped run AMFIE, a financial institution for civil servants with international bodies based in Europe. Kallas was responding to a query from Paul van Buitenen, the Dutch MEP and former EU official instrumental in the collapse of Jacques Santer's Commission in 1999.