EU anti-fraud office suspends Cyprus project grant
The European commission has confirmed it has launched an investigation into a project run by Olaf, the EU’s anti-fraud office.
It concerns a funding programme called ‘Hercule’, which allows Olaf to provide financial support to police and customs bodies in EU member states.
The Commission said it had suspended a subsidy, totalling €421,000, to help support police in Cyprus following claims that the grant had been misused.
The allegations focus on the tendering process in purchasing technical systems and other equipment.
A Commission source said: “Out of the €421,000 to be paid, €200,000 has so far been paid. Further payments have been suspended and the Cypriot police authorities notified of Olaf’s suspicions.”
Meanwhile, EU ‘whistleblower’ Paul van Buitenen has written to the Commission claiming to have new evidence of serious irregularities involving staff appointments at Olaf.
The MEP told EUX.TV, a Brussels-based online website, that the nomination procedure for appointing Olaf officials, including its director general, are “corrupt”.
“People get nominated not on the basis of professional qualifications but on the basis of agreements, on the basis of political colour, on the basis of nationality.
"There are even officials recruited who do not speak any foreign language,” said van Buitenen, a former Commission official whose allegations of serious fraud led to the resignation of the Jacques Santer Commission in 1999.
The Dutchman also accused both the Commission and European Parliament of failing to address problems at Olaf.
In response, Nicholas Ilett, an Olaf director, said: “In any personnel selection there will be differences of views but this does not mean there has been any irregularity or that the wrong appointment has been made.
"Still less that there has been any sort of corruption or misconduct.”
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