EC to turn down Poland's request to be excused repayment of misused funds

The European Commission (EC) will not excuse Poland from repaying the euro 2 .8 million of European Union (EU) aid that has been misspent in the developm ent of the Integrated Administration and Control System (IACS), claims Gazet a Wyborcza quoting sources close to the EC. In the fall of last year the EC discovered many irregularities in the development of the IACS system, meant to facilitate the distribution of EU farming subsidies. In compliance with E U procedures, Poland was asked to refund the euro 2.8 million of mis-spent a id by April 28, 2002. Two weeks ago the Polish government's Office of the Co mmittee for European Integration (UKIE) sent a letter asking for the decisio n to be reversed. However, EC sources say this is very unlikely, as the EC i s highly sensitive about the misuse of public money and will want to make an example of Poland to other accession candidates that EU aid money is to be t reated very carefully. (Gazeta Wyborcza, p. 27) T.J.