Open Letter on institutional corruption and cover-up from 'Whistleblower' Robert Dougal Watt

An Open Letter on institutional corruption and cover-up

from R.D. Watt, “whistleblower” and suspended Auditor, European Court of Auditors
 
Just over a year ago, on 22 April 2002, I “blew the whistle” on abuses by my employer, the European Court of Auditors.  Four days later, two hundred and five of my colleagues endorsed my allegations of nepotism and other corruption in the Court, in a secret ballot organised by the institution itself.  Seven months later, coincidentally or otherwise, recommendations for prosecution of a former Member of the Court, and her associates, on allegations of fraud, nepotism, and soliciting bribes in return for jobs, were presented to state prosecutors in Greece and Luxembourg.  
 
On 3 September 2002, following confidential approaches firstly to the Court, and latterly to the Chairwoman of the European Parliament’s Budgetary Control Committee – approaches which elicited no response – I also “blew the whistle” on the inadequacy of the official internal investigation into the circumstances surrounding the violent death in 1993 of a mafia-linked senior Commission official, Dr Antonio Quatraro; a case which, I understand, continues to be classified by the Belgian police as an, “unsolved murder”. 
 
I have also corresponded with the UK Parliament’s Public Accounts Committee.  With regard to my submission of 10 February 2003 to the Public Accounts Committee, Mr Paul van Buitenen has commented:  “Very good overview of many issues.  Of course it is incomplete (even I could add some material), but this should get everyone of common sense interested to investigate”.    
 
In summary, I submit that the evidence presented over the past year is persuasive of the following:
  • the European Commission harboured a major and documented fraud on EU funds, for which no-one has ever been prosecuted, neither in the Commission, nor in the Member States involved, i.e., Italy and Greece;
  • the Commission’s internal investigation unit, UCLAF, covered up the nature and extent of the “Quatraro Case” corruption, in 1993; suppressing Dr Quatraro’s admission, made just before he died, that others in the Commission were involved; and suppressing those inconvenient facts of the case which implied he did not act alone.  OLAF, successor of UCLAF, continued to maintain the UCLAF “line”, as late as 2001; despite its knowledge of Dr Quatraro’s admission; and despite the presentation by the Court of Auditors in 2001 of fresh evidence inconsistent with the UCLAF/OLAF analysis;
  • the hierarchy of the European Parliament was misled, 1993-2001, as to the true nature and extent of the “Quatraro Case”; but has responded with public indifference to the information that it was misled, and to the evidence of cover-up.  And although my allegations against the Court precipitated an internal enquiry by the institution, the results of which I understand have been privately passed to the European Parliament’s Budgetary Control Committee; yet that Committee’s members neither acknowledge my contribution, nor protest the Court’s vindictive pursuit of the “whistleblower” who gave rise to that internal enquiry.  The Court has not informed me of the existence of that internal enquiry; has not sought my participation; has not informed me of its results; yet is pursuing a disciplinary procedure against me for “blowing the whistle”;
  • the European Court of Auditors failed to identify the UCLAF “whitewash” of the “Quatraro Case” in 1993; refused to reconsider its verdict even when new evidence undermining the OLAF version of events came to light; and, in December 2001, my internal allegation addressed to the President of the Court, claiming that evidence pertinent to a murder enquiry was not being followed up, neither by OLAF nor by my superiors – elicited no response; 
  • HM Treasury and the UK Parliament’s Public Accounts Committee have disregarded the evidence which I have presented of corruption in the European Court of Auditors; disregarded the evidence which I have presented regarding OLAF’s ten-year cover-up of the “Quatraro Case”; and disregarded my allegation that the UK National Audit Office, my former employer, had a corporate knowledge via its seconded staff of nepotism and abuse in the European Court of Auditors.

I submit that any impartial examination of the “Quatraro Case” and its mishandling, along with the established facts of corruption in the European Court of Auditors, will reveal serial failure by all of the bodies charged with protecting taxpayers’ money spent by “Europe”.  Reliance cannot be placed upon the accounts, as the Commission’s own Chief Accountant has revealed.  Reliance cannot be placed upon the Court of Auditors, which has itself harboured corruption.  Reliance cannot be placed upon the fraud investigation service, which failed to pursue, and then covered up, a major case of corruption involving the death of a Commission official.  Reliance cannot be placed upon the oversight of the European Parliament, the hierarchy of which has failed to react to evidence of serious wrong-doing in both the Court of Auditors and OLAF.  And it seems reliance cannot even be placed on HM Treasury, the National Audit Office, nor the Public Accounts Committee, the national bodies with responsibilities for oversight of British taxpayers’ money spent by “Europe”.  The only investigative “follow-up” of my allegations to date, has been by the Brussels-based on-line monthly publication, “The Sprout”.

 
I further submit that the gravity of these failures is significantly greater than the “sum of the parts”; i.e., the importance of failure has increased geometrically, rather than arithmetically, as each institution – national as well as European – has failed in sequence.  The logic underpinning the “separation of duties” between institutions and administrations is to minimise the risk of abuse, and to minimise damage if abuse does occur.  But in the Quatraro/Court cases, even though serious abuses have taken place, and even though all of the institutions involved have had ample time and opportunity to scrutinise the evidence; yet they have chosen to close ranks.  If such great abuses can be covered up, and/or ignored – what hope is there that smaller abuses are properly dealt with? 
 
The good news from the above is: “Europe” works.  Inter-institutional relationships within the EU, and between EU bodies and the UK bodies charged with protecting taxpayers’ money, are close and effective.  Conflicts which might be expected to arise, from the differing legal and political responsibilities of EU institutions, and national bodies, are in practice smoothly and quietly resolved, to mutual satisfaction.  The bad news: this is achieved by the sacrifice of justice, and accountability.
     
I propose that the European Parliament make public its knowledge of the Court’s internal enquiry; and that the manifest failures identified above be subject to external, transnational, public enquiry.
 
Yours faithfully,

R Dougal Watt, CPFA
30 April 2003
 
1A, Rue de Kirchberg, Weimerskirch, Luxembourg, L-1858.      Telephone:  ********
 
(Correspondence with HM Treasury and Public Accounts Committee, at www.justresponse.net)

Note: This letter was published for the first time as part of an exclusive report by JUST Response on May 7 2003.

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