EC ends firm contracts over inquiry into Eurostat fraud

CONTRACTS with four companies were terminated yesterday as investigations continue into fraud claims at Eurostat, the EU’s statistics arm.

Millions of euro may have disappeared in the 14 years since the fraud began and so far three of the most senior people in Eurostat have been relieved of their positions.

The European Commission announced yesterday it was ending contracts with four companies that carried out work for Eurostat. They are Planistat, CESD, 2SDA and TES.

It is also planning to have more of the work carried out in-house rather than being assigned to outside contractors.

“This is a very, very serious issue,” said EC spokesperson Reijo Kemppinen yesterday.

A team of 10 investigators under the direction of the EU’s independent fraud investigation unit is going through all Eurostat’s documents and interviewing staff.

An inquiry found that staff were setting up companies to assign Eurostat contracts to, were getting backhand payments from companies that won contracts and that fictitious contracts were being awarded.