Nielson accuses NGOs of misspending

Date: 04/01/01

By Gareth Harding

A FURIOUS war of words has broken out between the European Commission and the EU's largest coalition of development groups over claims that non-governmental organisations have mismanaged more than €1 million of Union taxpayers' money.

Development Commissioner Poul Nielson says an independent audit of the financial affairs of the Liaison Committee of Development NGOs to the EU, which is widely known by its French acronym CLONG, catalogues evidence of sloppy accounting and demonstrates an "inability to manage the use of certain EU funds".

While ruling out any suggestion of fraud, the Danish development chief believes that serious weaknesses in CLONG's management have confirmed doubts about its member organisations' book-keeping.

Nielson is demanding that the umbrella group, whose members total more than 900 development NGOs from across the continent, must repay the misspent money. But CLONG fiercely denies the allegations and is warning that it will be forced to lay off its staff if the Commission maintains its hostile stance.

The Brussels-based group insists that all the money it has handled over the past five years has been properly spent. It also argues that "if Commission rules for the use of funds are not adequate or officials have allocated funds to CLONG for purposes which are now felt to be inappropriate, that is the problem of the Commission and not the Liaison Committee".

The group adds that the EU executive's "strict and uncompromising position", which includes a freeze on the payment of money relating to existing contracts, will create "serious difficulties" in the months ahead. At present, more than 80% of the €10 million handled by CLONG is allocated to it by the Commission.

Nielson denies accusations from critics that he is launching a crusade against the organisation or that links between the Commission and development groups have become strained since he became development chief in September 1999.

"I remain committed to having a strong and honest relationship with NGOs," he said shortly before the Christmas break. "However, this relationship has to be founded on trust, financial probity and the protection of the EU's financial interests."

But non-governmental organisations remain deeply suspicious of Nielson's attitude towards them. "Crying crocodile tears about civil society is of little comfort to the people we are having to make redundant," said CLONG in a statement.

MEPs have also added their weight to calls for the groups' budget to be renewed for 2001. In a letter to Nielson, the chairman of the European Parliament's development committee Joaquim Miranda warned the Commissioner that the year-long audit "must avoid paralysing an organisation which has existed for some 20 years".

A furious war of words has broken out between the European Commission and the EU's largest coalition of development groups over claims that non-governmental organisations have mismanaged more than €1 million of Union taxpayers' money.