The European Commission needs more transparency in its allocation of funds for humanitarian and development aid, EU auditors said on Tuesday.
The European Court of Auditors (ECA) said that the commission’s system of classifying Non-Governmental Organisations
(NGOs) was unreliable, “while its tracking of funds is not sufficiently detailed.”
“While the commission is generally transparent about how it chooses NGO-led projects, it is less forthcoming about how
those projects use EU funds,” the report said.
Furthermore, its method of determining what counts as an NGO is unreliable in part because it relies on self-reporting.
The report notes that while the term “NGO’’ is widely used, there is no generally accepted international definition.
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For example, an NGO may use its legal status for this definition or its mission.
Another problem is that the commission lacks a consistent way to collect data as well as complete information on projects
especially for international NGOs and programmes that it only indirectly manages, the report noted.
“EU taxpayers need to know that their money is being paid over to a properly defined organisation and that the
commission will have to account for it fully,’’ said Annemie Turtelboom, the ECA member responsible for the report.
Among its recommendations, the report calls for more reliable accounting information on NGOs more rigorous
application of rules for EU grants going to third parties and better information on how NGOs spend funds.
