Belgium launches fraud probe over EU cleaning contract

(BRUSSELS) - Belgian authorities have launched a fraud investigation over a multi-million euro cleaning contract for European Union buildings in Brussels, Europe's Anti-Fraud Office (OLAF) confirmed Monday.

The investigation was revealed following allegations in the Belgian press over the weekend that EU bureacrats may have conspired with workers at a cleaning firm to draw up false contracts.

OLAF said in a statement that it had launched a probe in June 2005 concerning "the execution of a contract for cleaning services for buildings of the European Commission."

It said the probe "mainly focused on companies and/or individuals external to the European institutions."

"It is suspected that this contract may have been executed in an irregular manner," the agency said, putting the contract's value at 44 million euros (59 million dollars) from 2003 to 2007.

The case was referred to the Belgian federal prosecutor on March 1.

A spokeswoman for the European Commission said that the institution's president, Jose Manuel Barroso, "is, and will continue to be, determined to crack down to protect taxpayers' money" as part of a "zero tolerance policy."

According to Saturday's Le Soir newspaper, "European bureacrats may have provided false contracts for cleaning services" never carried out by the company, which it named as "Pedus."

It provided no information about the bureaucrats and EU officials refused to comment in detail on the investigation.

The daily said the problem was brought to OLAF's attention by an accountant with the company who was fired after he told his superiors that figures on its books did not match any work carried out by the firm.

OLAF said Monday it had published its statement "to clarify some incorrect information that may have appeared" in recent press articles.

Anti-Fraud Office (OLAF)