The City of Brussels denounces fraud suspicions in public procurement at third sector organisation GIAL

Brussels City Council has denounced to the Public Prosecutor suspicions of fraud within the third sector organisation GIAL, the I.T. management centre for for local administrations, the lawyer, Marc Uyttendaele, announced yesterday (Wednesday). The manager and two of his close associates have been suspended as a precautionary measure, whilst respecting the presumption of their innocence.

Brussels City Council has decided to implement an internal audit of the third sector organisation and to sue for criminal damages.

The backing of the local commune’s council for this action is still awaited.

Last week the Brussels authorities received a letter from a member of staff. This denounced an entire series of public procurement frauds on the part of the third sector organisation’s manager and his two closest collaborators.

This letter was given to the Public Prosecutor. Brussels City Council has, on the advice of its lawyers, taken immediate safeguarding measures.

No total amount has been quantified. The nature of the frauds has not been stated.

In June 2006, the City Council made two officials and two employees of the third sector organisation GIAL also, at that time, sued for criminal damages.

The association then demanded damages of some 7 million euros from these former collaborators, prosecuted in particular for fraud and breach of trust.

The errors in question, discovered by auditors, took place at intervals between 1998 and 2005, through an anonymous company created to market software designed by GIAL.

The Brussels Times

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