EU AUDITORS have found that “at least” €2.64 billion of the €24 billion in payments last year under the European Commission’s cohesion fund should not have been paid due to procurement breaches and other failings.
Basing its conclusions on sample estimates, the court highlights serious breaches of eligibility conditions for cohesion fund reimbursements.
The fund was established to help member states address competitive challenges arising from monetary union, but spending controls are weak.
“In relation to the cohesion funds, from which Ireland . . . receives substantial benefits, I regret that the situation is still very unsatisfactory, with the court estimating that at least 11 per cent of the total amount reimbursed should not have been paid out,” said Máire Geoghegan-Quinn, the Irish member of the court.
While the court gave an unqualified opinion on the reliability of the EU’s overall accounts for 2008 and said the level of irregularity had decreased, court president Vitor Caldeira said irregularities were still “too high” in many areas.
“In many areas where the court continues to report a high level of error, the errors are a consequence of too complex rules and regulations. Simplification, therefore, remains a priority,” Mr Caldeira said.
The court gave a qualified opinion in respect of agriculture and natural resources, the first time it did not give an adverse opinion. Except for rural development, payments were in all material respects legal and regular.
The court also qualified its opinion in respect of economic and financial affairs due to a high level of errors in research and development programmes.
Although Ms Geoghegan-Quinn was expected in Brussels yesterday for the publication of the court’s report, her chef de cabinet said she was on her way to Ireland on personal business. He declined to elaborate.
A qualified audit opinion suggests that the information provided was limited in scope. An adverse opinion indicates an auditor’s opinion that financial statements do not accurately present an organisation’s financial position or results.