OLAF launches probe into Palestinian aid diversion claims

Date: 06/02/03

ANTI-fraud office OLAF has opened an investigation into claims that part of the €10 million which the EU hands over to the Palestinian Authority each month could be diverted to terrorism.

The development comes as political group leaders and lawyers working for the European Parliament continue to argue over how a call for a probe into possible misuse of the aid should be handled.

Some 170 of the assembly's 626 members have signed a letter calling for a fully-fledged committee of inquiry. This would have the power to summon EU officials and quiz them on the allegations.

The request is due to be examined by political group leaders in Strasbourg next week (13 February). Insiders say most of the leaders believe their approval is required for the probe to get the green light. But the Parliament's legal services have recommended the request should be debated by the entire assembly.

MEP Charles Tannock, who has led calls for a full inquiry, said he was not trying to prevent aid to the Palestinians, provided it is correctly managed. Israel's new EU Ambassador Oded Eran concurred: "We don't have any opposition to EU assistance to the Palestinians. What some of the members of Parliament want is a sort of monitoring mechanism on the EU side, which will prevent the abuse or misuse of funds."

But the Palestinians' Brussels envoy Chawki Armali argued: "It would have been more appropriate for the European Parliament to have an investigation committee about the daily violation of human rights by Israeli forces and the destruction by the Israelis of projects which were financed by the European Union."

The EU has given the Palestinians €1.5 billion since 1994. External Relations Commissioner Chris Patten has consistently maintained that there is no evidence EU funds are being used for terrorism.

The EU's anti-fraud office OLAF has opened an investigation into claims that part of the €10 million which the European Union hands over to the Palestinian Authority each month could be diverted to terrorism.