Report of the European Anti-Fraud Office : Sixth Activity Report for the period 1 July 2004 to 31 December 2005

Foreword by the Director of OLAF, Franz-H. Brüner

It is a privilege to be able to present the sixth Activity Report of the European Anti Fraud Office.

My first term as Director of OLAF expired on 28 February 2005. I was appointed for a second term of five years on 14 February 2006.

For most of the time covered by this Report, therefore, I officiated as Director of OLAF under the principle of continuity. I was charged with the conduct of current business, pending the completion of the complex appointment process which included consultations between the Commission, the Council and the European Parliament.

A number of significant developments for OLAF occurred during this period. There was further debate about how the core functions of OLAF should develop. Notably, the European Parliament held a hearing in July whose conclusions generally endorsed OLAF’s present role and status. On 24 May 2006 the Commission revised its proposal to improve OLAF’s main legal base. The European Parliament and the Council are now considering this proposal.

Also in July 2005, the European Court of Auditors produced a Special Report on OLAF. Although much of the audit work was necessarily based on investigations which had been closed many months earlier, the ECA was able to demonstrate that OLAF had made significant progress since its creation in 1999 and at the same time to indicate areas requiring further management attention. I welcome these positive suggestions.

Another high point of the year was the appointment of a new Supervisory Committee in November. The appointment of members with both high qualifications and direct experience of operational anti-fraud work made it possible to resume a constructive dialogue with an active Supervisory Committee. In the words of the incoming Chair of the Supervisory Committee, Mrs Rosalind Wright, formerly Director of the Serious Fraud Office in the United Kingdom, the Committee’s role is that of a «critical friend» to OLAF. I am convinced that this constructive approach will strengthen OLAF’s ability to do its job.

In November, the Commission launched its Transparency Initiative with the strong support of the Vice-President with responsibility for the fight against fraud, Siim Kallas. OLAF was entrusted with a significant role in the further development of this Initiative which has real potential as an element of a global strategy against fraud.

It was already clear towards the end of my first term of office that a first task for any new Director would be to re-organise the Office to reflect the growth in staff numbers during OLAF’s first five years, and to take account of the experience gained. These decisions on the re-organisation of the Office and on senior appointments were necessarily delayed until after my reappointment.

Also unfortunate were the long delays to OLAF’s recruitment plans caused by changes to the EU staff regulations and the consequent need for amendments to various technical provisions affecting OLAF staff. These are matters outside OLAF’s control.

The restructuring of the Office will therefore be a priority for 2006. This re-organisation will be the basis for my second term as Director, so that OLAF can build on the strengths, the expertise and the knowledge which it has established since its creation in 1999.

July, 2006

F.H. Brüner

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OLAF Sixth Activity Report