Transparency International: complexity of SF implementation system is a basis for corruption and a risk for national development

In concluding its multi-country project on ensuring transparency in management of the EU Structural funds, the global anti-corruption movement,Transparency International, points out the corruption risks in implementation of EU structural funds in the new member states. The complicated implementation mechanism coupled with a considerable amount of funds creates a good basis for corruption and thus hinders the full potential for national development in recipient countries. Transparency International suggests that EU structural funds procedures must be made more transparent and open.
The responsible bureaucratic institutions shall maximize the openness of information about final beneficiaries of EU funding as well as project submission and project evaluation process.The regulations for project competitions should be of impeccable quality and the rules must not be changed after the competition has already opened.
TI Latvia development director Agris Varpins comments, ”The 2007-2013 structural fund implementation period is a unique opportunity for development of Latvia'a national economy, however, the current experience suggests that this opportunity may not be used fully due to inefficiencies and unfair actions”.
TI Latvia has repeatedly pointed out to the Latvian authorities issues requiring immediate solutions. The lion's share of criticism was directed (already back in 2005) at the non-existence of qualitative project evaluation criteria in several project competitions, which effectively meant the application of “the first come, first served” principle. Similarly there is a widespread practice to amend the project rules after the competition has already been announced, thus leading to unequal treatment of applicants. Following media and NGO pressure, information on final beneficiaries was made public, however, information is hard to find on the agencies' websites and for the time being, each agency decides on the level of detail of the information it publishes. The respective Cabinet of Ministers regulations on the amount and procedures for publication of this information has not yet been adopted.
The project “Transparency Through Awareness” was implemented in Estonia, Latvia, Lithuania, Poland, CzechRepublic and Slovenia. The project was funded by the European Commission.