Dalligate scandal deepens in Brussels

EUObserver is reporting that a confidential and highly damaging report on OLAF’s conduct of the investigation into allegations of corruption against Health Commissioner Dalli - by OLAF's own supervisors - has been sent to the European Parliament.

The "Dalligate" scandal has been rumbling on for a few months now in Brussels. Allegations of dodgy dealings on the part of Commissioner Dalli over his upcoming tobacco legislation and the snus (oral tobacco that is legal in Sweden but banned in the rest of the EU) industry led to his resignation in October last year. Dalli denies the allegations that he asked for bribes in return for legislative changes and hitout against Commission President Barroso, who effectively forced him in to resigning. Dalli is currently facing legal action in Malta.

In 2013 the scandal took an unexpected turn, however, when it was alleged that OLAF, the anti-fraud agency that launched the investigation against Dalli and published the report that led to his resignation, broke the law by acquiring communication information illegally (such as telephone information). It also came to light that the source of information for the meeting where Dalli supposedly asked for the bribe contacted OLAF to tell them that the meeting had never taken place, but OLAF allegedly told her to not tell the public. However Green MEP José Bové was told that Gayle Kimberley, the source, had not been to the meeting, driving OLAF back into the spotlight.

Despite the uproar over the handling of the case by OLAF and its head, Giovanni Kessler, with a proposal by the European Greens that the Parliament launch its own investigation (by setting up a committee of inquiry) into how the case was conducted. However the European Parliament dropped the idea on 11th April, with the EPP, S&D and ADLE groups against an inquiry – a blow for MEPs who had been calling for Kessler to resign.

But now the confidential report by the OLAF supervisors has breathed new life into the story. As EUObserver reports:

"[The report] accuses [Kessler's] office of conducting unlawful interrogations in Malta, of intercepting a private telephone conversation, of involving the help of Maltese authorities without a proper legal basis and of overlooking or rushing checks on the legality of its actions in order to speed up the outcome.

[...]

Given the complexity of the case, his [Kessler's] hastiness calls into question whether Olaf could have fulfilled all the necessary checks on the legality of its decision and on the credibility of the accusations, the report notes.

The supervisors add that commission President Jose Manuel Barroso wanted the investigation to get top priority.

In a violation of Olaf's duty to remain independent of Barroso's people, Kessler formally designated the commission as the source of the information on the basis of which he launched proceedings.

In a further violation of Olaf procedure, he made the designation despite the fact the information actually came from Swedish Match.

The supervisors also accuse Olaf of instructing the key Dalligate witness - a Maltese-based lobbyist called Gayle Kimberley - to lie."

With such a high-profile case (and a high-profile scalp in the form of a Commissioner), the serious questions over the handling of this case is deeply damaging to OLAF. While it's important to make sure that the court proceedings in Malta aren't interfered with, it's vital that there's a proper investigation into the conduct of this case. OLAF, as the anti-fraud office, is supposed to be irreproachable, and there has to be public confidence that it is able to carry out its functions independently, and in line with the rule of law. The European Parliament has to return to the issue of setting up a committee for inquiry.

The Politics of Appointing Borg

The European Parliament has to decide whether or not to confirm Tonio Borg as the new Commissioner for Health and Consumer Policy after John Dalli was controversially brought down by an OLAF investigation. Borg has met with opposition in the EP for his conservative views, particularly on divorce, abortion and cohabiting couples. The Greens, ALDE, United Left and Socialists and Democrats have concerns over Borg suitability and might reject him. Although Borg performed well in last week's hearing, saying that he will stick within the treaties and Charter of Fundamental Rights, these concerns remain, and the Parliament has released a check-list for consenting to his appointment:

"[Borg] should publicly commit to the following:

• The delivery of the legislative proposal on tobacco products by January 2013;
• The adoption of legislative proposals on animal cloning and novel food by mid-2013;
• The full respect of the March 2013 deadline for the ban of animal testing for cosmetics;
• Better enforcement of EU law on animal transport;
• Full respect of the EU Charter on Fundamental rights, in particular of Article 21, as well as of EU anti-discrimination legislation and case-law;
• Recognising the innate dignity of all citizens of the EU, regardless of their sexual orientations, actively working to address health inequalities and to acting against stigmatisation of people with HIV and AIDS;
• Actively supporting EU policies with regard to women’s rights."

There seems to be some confusion over the concerns these political groups have over Borg's appointment and  their connection to his prospective portfolio. While the battle over values echoes that of Rocco Buttiglione's rejection, the wider ideological battle is less obvious because the EP isn't electing the Commission en bloc, but is deciding on a replacement Commissioner, so the debate within the EP has been a bit more focused on the specific portfolio, so critics have been linking his conservatives views to the area of health, despite the EU's lack of power in this area. As Martin Holterman writes in his great article on how political Commissioner appointments could/should be:

"Judging, for example, from the headline of this opinion article on Public Service Europe, Mr. Borg’s critics seem to consider their objections to concern his “suitability” for the Health and Consumer Affairs portfolio in particular. They are not worried about the ideological balance of power in the College of Commissioners, and they are not even necessarily worried about ideology in general, but rather they seem to argue that his ideology will get in the way of his job performance in concrete ways. The author of this opinion article,Monika Kosiñska from the the European Public Health Alliance, for example, lists the candidate’s views on abortion, homosexuality and immigration as being particularly problematic. This is particularly curious because I’m not entirely sure how the Health and Consumer Affairs portfolio touches on these fields."

But while the views of the candidate and his or her specific competence are important, the general ideological  views of the candidate and the political make-up of the Commission does matter and is an important political issue. Commissioners vote on draft proposals before they are put to the Council and the Parliament, so the political viewpoints of each Commissioner matters for all areas of Commission policy, not just his or her own portfolio. Just this week Commissioner Reding introduced a watered-down version of her boardroom quotas law - watered down due to opposition that included fellow Commissioners who could vote to block the proposal.

This collective responsibility of the College of Commissioners means that its political make-up is a valid issue for the Parliament in deciding on new Commissioners. The fact that respect for women's rights is included on the list, and that the Commission is putting forward draft legislation in this area, shows that the ideology of the candidate is a relevant and live issue, and MEPs in the centre-ground and on the left should make it clear that the Commission should reflect the political make-up of the Parliament (or, better yet, the majority in Parliament). How will he influence policies in the areas of employment, social affairs, or justice and home affairs? For the political groups on the left, they should not vote for a candidate who holds such emphatically opposing political views unless something is won by way of coalition or concession.

OLAF investigation brings down Health Commissioner Dalli

An OLAF investigation into attempts by the tobacco industry to influence EU legislation has led to the resignation of Maltese Commissioner John Dalli, who had health as his portfolio.

The investigation was into whether a Maltese entrepreneur had used contacts with Dalli to influence future proposals on tobacco legislation. The complaint to OLAF was launched by the company Swedish Match (a tobacco producer) in May 2012, and the report was delivered to the Commission yesterday. The report found:

"...that the Maltese entrepreneur had approached the company using his contacts with Mr Dalli and sought to gain financial advantages in exchange for influence over a possible future legislative proposal on snus. No transaction was concluded between the company and the entrepreneur and no payment was made. The OLAF report did not find any conclusive evidence of the direct participation of Mr Dalli but did consider that he was aware of these events."

So while Dalli did not accept any bribes, OLAF considers that he was aware of these dodgy dealings. It is now for the Attorney General of Malta and the Maltese judiciary to decide on further action.

Dalli rejects the allegations.