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Conflict of interest surrounding labour minister could jeopardise EU funding

Autor: Adelina Mihai, Iulian Anghel

19.04.2011, 23:52 35

The EU funds scandal that Labour Minister Ioan Botiş is involvedin could affect EU funding, at least for the Sectoral OperationalProgramme Human Resources Development (POSDRU), 4.5 billion euros).The scandal broke out Monday evening after the minister admitted ina televised programme that his wife was working with an NGO inBistriţa registered in his home, which develops a programmedeclared eligible for funding (500,000 euros) through POSDRU - aprogramme managed by the Labour Ministry, the institution he runs.Prime Minister Emil Boc said Botiş will submit his resignation ifthe National Integrity Agency (ANI), which has started aninvestigation, concludes there is a conflict of interest. TheDepartment of Anti-Fraud Fight (DLAF), which also opened aninvestigation, said in a release that in the case of the minister,there are clues that would suggest national and EU legislation onthe conflict of interest may have been infringed upon.

"We understand from the Managing Authority of the SectoralOperational Programme Human Resources Development (SOPHRD)2007-2013 that no payments will be done for this project until thesituation is clarified.

Pre-financing was paid on November 29th 2010 and, if thenational authorities (ANI, DLAF) conclude that there is a conflictof interest, measures will be taken by the SOPHRD ManagingAuthority to recover the pre-financing money," said ChristinaArigho, spokesperson for Employment, Social Affairs and Inclusions,within the European Commission.

According to Vasile Puşcaş, professor at the Cluj University,who teaches courses on EU legislation, former chief negotiator ofRomania with the EU, the fact that the labour minister is set togrant EU funding to a project that his wife was involved in couldput the entire POSDRU on the line, because the EU could ask for are-evaluation of the programme, but the investigation could extendto the other programmes, as well.

"POSDRU can be put on the line, but the investigation couldextend to include the other programmes, as well. Then, when ananalysis is made in the EU Parliament, MPs discuss things alonggeneral lines, they talk about EU funds, not about the programme.When the European Commission and the European Anti-Fraud Office doan analysis, they refer to one programme, but MPs refer to acountry and to EU funds in general."

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