MEPs debate on EU funding allocated to NGOs incriminated in the recent corruption revelations and the protection of EU financial interests. Opening statement by Johannes HAHN, European Commissioner for Budget and Administration.

statement

Strasbourg

debate

plenary session

fight against organised crime, corruption and money laundering (T)

HAHN, Johannes (AT, EC)

EU funding allocated to NGOs incriminated in the recent corruption revelations and the protection of EU financial interests: opening statement by Johannes HAHN, European Commissioner for Budget and Administration

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, Honourable members. Thank you for the opportunity to discuss funding for civil society organisations today in the context of the recent revelations. The Commission is politically committed and legally bound to ensure that organisations and projects involved in criminal unethical practices or those incompatible with human values don't receive EU financial support. This, of course, includes upholding the EU Charter of Fundamental Rights and the principle of sound financial management.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, The Commission also acknowledges and supports the key role that independent civil society organisations play for the well-functioning of our democracies, upholding the common values on which the union is founded. The rule of law, fundamental rights and democracy. NGOs monitor this and draw attention to threats to our values. NGOs also play an important role in the detection, prevention and fight against corruption.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, However, there can be bad apples in the punch, and the legal framework set by the financial regulation aims at ensuring the protection of the union financial interests in this regard. This framework applies fully to NGOs, the subject to the same rules and the differential regulation as for any other entity receiving EU funding. Prior to the award of EU funding, the Commission carries out rigorous selection processes, ensuring that funding is in line with EU values.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, During the lifetime, EU funded projects are closely monitored to ensure that they are implemented in accordance with the agreements and the description of works. The Commission has not and will not hesitate to take appropriate action against any beneficiary of EU funding that is confirmed to be in breach of applicable rules. All relevant agreements establish various mechanism to safeguard the proper use of union funds.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, Controls or audits are put in place to identify irregularities, fraud or breach of obligations. And in the event of these occurring, including the violation of EU values, contracts may be suspended, terminated or reduced and funds may be recovered. As an example of applying the above mechanism and in view of the ongoing criminal investigation, the Commission has suspended all payments for the projects in Libya contracted with the NGO, no Peace without Justice as a precautionary measure.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, The Commission ensures also that EU funds don't end up benefiting organisations that breach EU values, so the implementation of the early detection exclusion system. The exclusion grounds for applicants and recipients of union funds include grave professional misconduct, terrorist financing, fraud and corruption. Lastly, all entities implementing EU funds are also subject to EU restrictive measures stemming from Article 250 of the Treaty on the Functioning of the European Union and then acted through Council regulations.

SOUNDBITE (English), Johannes HAHN, European Commissioner for Budget and Administration, Those who allow targeting of governments of non-EU countries, companies, groups, organisations or individuals in reporting listed entities or persons from receiving EU funding. If an entity is engaged in any criminal or unethical practices or acts against the values we have, the legal framework in place to prevent such entity from receiving EU funding. Thank you.