Irregularities and suspected fraud in the areas of agricultural policy, cohesion and pre-accession funds increased in 2009 from 2008 levels, notes the annual report on the protection of the EU’s financial interests, published by the European Commission, on 14 July.

The document provides a statistical summary of all irregularities notified to the executive by member states in 2009 (since this is a shared responsibility) and an overview of recovery of EU funds. The number of cases of irregularities reported in the area of own resources fell by 23% and the estimated amount concerned declined by 8.5% from 2008. Suspected fraud accounted for 19% of all reported irregularities in own resources, or around €99 million. The number of cases of irregularities reported also declined for direct expenditure, by 24%. The estimated amount concerned was €27.5 million, of which around €1.5 million linked to suspected cases of fraud.

The figures are more negative for agriculture, cohesion and pre-accession funds. For agriculture, the number of cases of irregularities reported rose by 43%, for an estimated €125 million. Of total allocations to agriculture in 2009, 0.03% is suspected to have been obtained by fraud. For cohesion, the number of cases of irregularities reported rose by 23% in 2009 to an estimated €1.22 billion and 0.23% of the total allocations to this sector in 2009 is suspected to have been affected by fraud. For pre-accession funds, the number of cases of irregularities reported by the 14 beneficiary countries rose by 35% in 2009 to an estimated €117 million. Of total pre-accession funds allocated in 2009, 0.38% is suspected to have been affected by fraud.

For the Commission, these figures are “often an indication that the controls and anti-fraud system in place are working better and that more cases are being reported”. Under EU legislation, all errors found in relation to EU funds have to be corrected and funds must be recovered if not used according to the rules (see report for figures).

OLAF REPORT

The European Anti-Fraud Office (OLAF) also published, on 14 July, its own annual activity report outlining the results of its independent operational work in 2009. The document points out weaknesses in a new EU agency, misuse of parliamentary allowances by a former MEP in the amount of €40,000 a year and inquiries into possible systemic fraud in the context of the SAPARD programme (special accession programme for agriculture and rural development).

The reports are available at www.europolitics.info > Search = 276891