European Court of Auditors to investigate EU agencies

Investigation into allegations of conflicts of interest.

The European Court of Auditors (ECA) is to launch a special investigation into allegations of conflicts of interest at EU agencies at the request of the European Parliament. The Parliament, which will formally call for the inquiry on Tuesday (10 May), is concerned over claims that the agencies’ rules are too weak.

Eoin O’Shea, the ECA’s Irish member, who will be responsible for the inquiry, said that it would focus on how conflict-of-interest rules were applied by agency management boards, directors, experts and advisory panels. “We will hopefully complete it this year,” O’Shea told European Voice.

O’Shea said that his audit team would examine whether EU agency rules match up to international public-sector standards as drafted by the Organisation of Economic Co-operation and Development. He refused to speculate on the likely outcome but said that the agencies and the European Commission had been told of the investigation.

Increased scrutiny

The Parliament’s budgetary control committee want to put the EU’s 22 “community” agencies under increased scrutiny following ECA reports critical of their 2009 accounts. The MEPs have raised concerns that agencies are not doing enough to guarantee the independence of staff and experts, and over weaknesses in procurement and recruitment.

The audit request comes after the committee recommended postponing approval of the 2009 accounts of the London-based European Medicines Agency (EMA) and the European Police College (Cepol). Both agencies have been given until 30 June to respond to questions over their financial management and rules on conflict of interest.

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In a reaction to the postponement, Cepol said in a statement that it was implementing a reform plan to “meet the standards expected” by MEPs and that the agency as it worked in 2009 “no longer exists”. It added that the agency was now under new management and was working “in line with all applicable regulations and legitimate expectations of all stakeholders”.

The EMA is facing allegations that scientific experts were unduly influenced by pharmaceutical companies in their work evaluating new medicines. MEPs also want to know what management reforms Cepol is putting in place to correct irregularities in spending and hiring practices.

A report critical of the performance, financial management and control of the agencies drafted for the committee by Georgios Stavrakakis, a Greek centre-left MEP, is expected to be endorsed by the full Parliament.