Report says Commission lost control of bureaucracy

By far the most serious charge levelled by the report into allegations of corruption and nepotism in the EU Commission is the one which says it has lost control of its bureaucracy.

Such a loss of control is compounded by a wilful refusal to accept responsibility. "It is becoming difficult to find anyone who has even the slightest sense of responsibility," the report concludes.

"However, that sense of responsibility is essential. It must be demonstrated first and foremost by the commissioners individually and the Commission as a body. The temptation to deprive the concept of responsibility of all substance is a dangerous one. That concept is the ultimate manifestation of democracy."

Damning words from a group appointed by agreement with the Commission and which early today prompted the Commission president, Jacques Santer, and the entire commission to tender their resignations. The report criticised them in case after case where they were slow to crack down on abuses.

Edith Cresson, almost inevitable, but immediately also raises fundamental questions about questions about all 20 members of the Commission, college, whether named directly or not. That includes the Irish Commissioner, Mr Padraig Flynn, who is notrepeat not named.

The report's concluding chapter notes that commissioners in evidence have pleaded that they were unaware of irregularities in their services.

While accepting that such admissions relieve them of personal responsibility, the report goes on to say that they represent a "serious failure" in another respect "tantamount to an admission of a loss of control by the political authorities over the administration they are supposed to be running. This loss of control implies at the outset a heavy responsibility for both the commissioners individually and the Commission as a whole."

No fraud or personal gain involving a commissioner was detected, but the report "found instances where the commissioners or the Commission as a whole bear responsibility for instances of fraud, irregularities or mismanagement in their services or areas of responsibility".

In specific briefs the report found:

Tourism: frauds dating back to 1989 in which 76 people or bodies faced charges in the memberstates and over which a Commission head of unit was sacked.

MED: irregularities in the Mediterranean programme - criticism by the Court of Auditors inadequately followed up.

The Spanish Vice-President of the Commission, Mr Marin, acted "swiftly and correctly" over allegations of conflicts of interest but too slowly in ordering an administrative inquiry.

ECHO: use by the humanitarian office of illegal staffing to get round staff shortages. Mr Marin is blamed for tolerating the practice for far too long. That exposed ECHO to subsequent fraud and irregularities involving diversion of some £300,000 destined for the administration of Rwandan and Bosnian projects.

Leonardo: Ms Cresson failed to act in response to known and serious irregularities over several years in the Union's international student exchange programme.

Favouritism: Ms Cresson, the Regional Affairs Commissioner, Ms Monika Wulf-Mathies, and the Development Commissioner, Mr Joao de Deus Pinheiro, improperly appointed cronies to staff jobs.

Of the appointment by Ms Cresson of her friend, a former dentist and astrologer, Mr Rene Berthelot, as the chief consultant to the Commission on AIDS, the report says: "We have a clear case of favouritism. A person whose qualifications did not correspond to the various posts to which he was recruited was nonetheless employed. The work performed was manifestly deficient in terms of quantity, quality and relevance. The Community did not get good value for money."

Mr Santer is criticised for his failure to exercise any control over the Commission security office where serious fraud occurred.