A number of internal audits of Eurostat (Statistical Office of the European Communities) brought to light possible irregularities in financial management. As a consequence, OLAF (the Anti-fraud Office of the European Communities) opened a number of investigations relating in particular to contracts concluded by Eurostat with various companies. In 2002 and 2003, OLAF sent to the Luxembourg and French judicial authorities files relating to investigations implicating Mr. Yves Franchet and Mr. Daniel Byk, respectively former Director-General and former Director of Eurostat, in those irregularities.
Mr. Franchet and Mr. Byk brought an action in damages before the Court of First Instance of the European Communities, alleging wrongful acts on the part of both OLAF and the Commission in the course of administrative investigations, serious pecuniary and non-pecuniary damage, and a direct causal link between the wrongful acts and the harm arising there from.
They were represented during this endless case by Georges Vandersanden and Laure Levi, CMS DeBacker’s experts in International and EU civil service law.
The Court of First Instance has delivered an exemplary judgment by considering that, in handing over information to the judicial authorities and to the press, OLAF and the Commission have committed wrongful acts capable of rendering the Community liable.
It is particularly remarkable that, at paragraph 331 of its judgment, the Court of First Instance declares that the President of the European Commission, in his speech of 25 September 2003 during the Conference of the Presidents of Parliamentary Groups of the Parliament, has not respected the rights of defense of the Appellants, especially the principle of innocence presumption, since the declarations contained in this speech gave the impression that the Appellants were guilty.
The battle was arduous and exhausting, but the result is a real success for CMS DeBacker’s EU team and their clients, who have served the Commission with honesty and competence and who are persons of great value.
The significant amount of 56,000 Euros allocated by the Court of First Instance to the Appellants is also a primary compensation in the European Civil Servant case-law.
For further information, please read the Press Release n° 47/08 of 8 July 2008 : http://curia.europa.eu/en/actu/communiques/cp08/aff/cp080047en.pdf
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