§ Lord Rankeillourasked Her Majesty's Government:
How successful the European Commission has been in prosecuting the perpetrators of fraud against the EU budget; and whether they will consider withholding payment to the Commission until the level of fraud is brought down.
§ Lord Mackay of ArdbrecknishCriminal prosecution of those who commit fraud against the Community budget is the responsibility of the relevant authorities in the member states. Details of the reported irregularities are given in the Commission's annual report on the fight against fraud in 1994, on which an explanatory memorandum was submitted by HM Treasury on 11 April (Doc 6449/95). In this context, irregularities include all overpayments whether as a result of error, negligence or deliberate fraud.
The UK cannot legally withhold its contributions to the European Community. Member states are legally bound to make contributions to the Community budget in accordance with the Own Resources Decision.