§ Lord Tebbitasked Her Majesty's Government:
What is the best estimate available to them of the total amount of fraud and waste within the European Union budget.
§ The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Henley)There is no reliable estimate of fraud against the European Community budget. However, the Commission produces an annual report on the fight against fraud which contains details of irregularities notified by member states. In this context, irregularities includes all overpayments either as a result of error, negligence or deliberate fraud. The report on 1993 shows that Member States reported 2,299 cases of irregularity affecting the EAGGF Guarantee Section, own resources and Structural Funds, involving a total of 394.8 million ecu (£315.2 million). The true level of fraud is certainly higher.
Year Own resources EAGGF guarantee section Structural funds Mutual assistance Number Amount Amount recovered Number Amount Amount recovered Number Amount Amount recovered Number Of which were own of cases mecu £ million mecu £ million of cases mecu £ million mecu £ million of cases mecu £ million mecu £ million of cases resources 1993 137 110.50 8.17 Not available 180 4.30 3.35 1.30 1.01 0 0 0 Not available 12 10 [993 168 20.08 14.74 Not available 132 6.57 4.82 1.83 1.34 0 0 0 Not available 10 9 1991 207 13.05 9.14 Not available 131 5.11 3.58 1.47 1.03 5 5.22 3.65 Not available 11 10 The annual average rate for 1993 is £1 = 1.2845 ecu. The annual average rate for 1992 is £1 = 1.3620 ecu The annual average rate for 1991 is £1 = 1.4284 ecu. 1Figure for first half of 1993 only.