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EU demands a £20m refund for ‘botched’ Highland projects

The European Commission is demanding the return of more than £20 million in development grants paid out to the Highlands and Islands in the 1990s.

The EU has found errors and problems in the way that many of the projects were handled between 1994 and 1999, and has asked for the £20 million clawback as a penalty.

The Highlands and Islands area received about £100 million from European Regional development Fund between 1994 and 1999.  After two long-running investigations, the European Commission claims that there were “weaknesses in the management” of some projects and a high rate of ineligible expenditure”.

'Scotsman' Friday 15 September 2006