14/03/2003

NIO demands recovery of prisoner group's funding

Following an anti-fraud probe, the Community Foundation (previously the NIVT), which administers EU grants, has been ordered to recover up to £26,500 in funding.

The EU's anti-fraud office, Office European De Lutte Antifraude (OLAF), and the Department of Finance launched an investigation after weapons and paramilitary paraphernalia were found at the Ballymoney-based Ex-Prisoners' Interpretive Centre (EPIC) – an organisation funded by the EU Peace 1 programme. The office was also used by the Progressive Unionist Party – which is linked to the loyalist UVF.

On 17 May 2000, a police raid uncovered a powerful machine gun, a rifle fitted with telescopic sights and silencer, a booby-trap device, a stun gun, three replica weapons, a large quantity of ammunition, military-style clothing and baseball bats at the office.

In findings published today, the NIO said that "on the balance of probability", the EPIC offices were used by and linked to the Progressive Unionist Party in contravention of the terms and conditions under which the grant was made. However, adds the report, there was no evidence to suggest that EU funds were used to "purchase the arms or other terrorist equipment found on the premises".

The report also found that there were "serious weaknesses" in the operation and effectiveness of the NIVT monitoring of the Peace funding allocated to the project.

The NIO added: "In view of this, the government has today written to NIVT (now Community Foundation) asking that the grant of £26,500 paid to this organisation be recovered."

EPIC (North Ulster), which was an autonomous organisation separate from other EPIC projects, was a local welfare organisation for loyalist ex-prisoners, particularly those affiliated to the UVF. It has since closed.

The PUP leader David Ervine said: "The £26,000 was used to pay wages and rent. There was no suggestion as far as I can tell from this report that there was any misappropriation of money. The money was used for the purpose for which it was supposed to be used – which was to pay wages and pay rent."

The wider EPIC organisation has projects across Northern Ireland and has received around £700,000 from Peace 1 via NIVT.

(GMcG)

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