EU BUDGET: PARLIAMENT'S BUDGETARY CONTROL COMMITTEE URGES COMMISSION TO FIGHT FRAUD.

Herbert Bosch's report concentrates on two main fraud cases. The first related to large-scale trafficking in adulterated butter, using vegetable and animal fats and even chemical substances. This fraud was organised by a criminal network and the financial loss to the Community was believed to be far more than the initial estimate of Euro 45 million. According to OLAF, dozens of firms in several Member States were involved, including a French firm, Flechard, implicated in the case of fraudulent butter exports to the former Soviet Union in the early 1990s. Flechard was fined at the time but the amount of the fine was substantially reduced in circumstances that had led the European Parliament to ask OLAF to conduct an inquiry into the matter. The findings of the enquiry are expected in the near future. The second case involved serious irregularities, and possibly fraud, in connection with EU subsidies for flax-growing in certain Member States. Inquiries were already being conducted by the judicial authorities in Spain to determine whether anyone was liable for criminal charges. OLAF is also preparing a report on the cases in Spain and other Member States which is due to be published shortly. Both...