Audit Committee

In document European Investment Bank annual report 1999 (Page 72-77)

The three members of the Audit Committee are appointed by the Board of Governors for a renewable mandate of three years. Since 1996, the Committee has also had an observer, appointed annually for a mandate of one year. An independent body answer- able directly to the Board of Governors, the Audit Committee verifies that the opera- tions of the Bank have been conducted in compliance with the procedures laid down in its Statute and its books kept in a proper manner. The Governors take note of the report of the Audit Committee and its conclusions, and of the Statement by the Audit Committee, before approving the Annual Report of the Board of Directors.

On 14 June 1999, the Board of Governors

appointed Mr Albert HANSEN to succeed

Mr Emídio MARIA whose mandate had expired. In accordance with the system of annual rota- tion, Mr Yrjö TUOKKO took over the chairman- ship of the Audit Committee held by Mr MARIA until 14 June 1999.

At their Annual Meeting, the Governors also decided to appoint Mr Emídio MARIA as ob- server to the Audit Committee for a term of one year.

In accordance with its function, the Audit Committee holds monthly meetings with the Management Committee and key staff mem- bers, coordinates the work of the Bank’s ex- ternal and internal auditors, whose reports it examines, and analyses the information sup- plied by the Bank’s departments responsible for monitoring and control.

The Committee also conducts on-site visits to projects financed by the Bank; consequently, in 1999 it inspected, jointly with the Euro- pean Court of Auditors, several projects in Portugal and Spain financed or cofinanced with grant or loan aid, or attracting interest rebates under the European Economic Area Financial Mechanism.

In addition, following on-site visits with the Court of Auditors to all countries in the Union, the Committee examined the imple- mentation and impact of the temporary SME Facility established in April 1994 to foster job creation (“Copenhagen Facility”).

Administration and staff

With a view to responding as effectively as possible to the very wide variety of tasks entrusted to it, the Bank attaches particular importance to promoting dynamic human re- source management by encouraging indi- vidual mobility and development. In 1999, emphasis was placed mainly on broadening the expertise of the senior management cadre. The Bank also continued to focus on training, equal opportunities and dialogue with the Staff Representatives.

In addition, the Bank makes every effort to ensure that the highest standards of ethics are respected in the pursuit of its activities by drawing up Codes of Conduct for its staff and managing bodies and introducing procedures designed to prevent fraud.

Personnel management

Mobility and new career openings

Mobility represents a major component of personnel policy and around one hundred staff benefit from such opportunities each

year. Under this heading, a work programme was embarked upon jointly with the Director- ates to foster mobility as an instrument for personal development. More especially, a study on the responsibilities of loan officers and secretaries was undertaken in order to define an intermediate level of responsibility as assistant and so to open up new career possibilities. In a similar vein, a project for “enriching on-the-job responsibilities” was set up with the aim of enabling secretarial, clerical and support staff, with recognised po- tential, to assume, through appropriate train- ing, tasks currently falling within the remit of executive staff.

Management development programme The other main pillar of human resource management is staff training, geared to op- timising existing capabilities and acquiring new skills. Given the pivotal role of mana- gerial functions in furthering personnel de- velopment, training and motivation, the Bank launched a management development programme.

This programme encompasses several training sessions at a leading European management school (selected by tender), in tandem with individual accompanying measures for partici- pants to assist them in applying their new expertise.

As in previous years, the Bank maintained a high level of training for staff as a whole, centred on the essential skills required for the institution to conduct its activities.

page71 D E C I S I O N - M A K I N G B O D I E S , A D M I N I S T R A T I O N A N D S T A F F

Equal opportunities

The Bank attaches particular importance to equal opportunities for all staff. The Joint Committee on Equal Opportunities (COPEC), established in 1994, pressed ahead with its multiannual work programme and main- tained contacts with other institutions, espe- cially the ORIGIN network and Intercopec. Progress accomplished in terms of equal representation of both male and female em- ployees in all professional categories demon- strates a genuine desire for change within the institution and efforts will continue in this direction.

Staff representation

A new College of Staff Representatives was

elected in May 1999. The main topics

broached in discussions with the Bank’s man- agement focused on personnel policy mod-

ernisation and working conditions. The

creation of a Joint Committee on Health, Hygiene and Safety at work was formally en- dorsed. In view of the complexity of issues under examination, the spokesman for the Staff Representatives was seconded for a pe- riod of six months in order to be able to work full time for the College.

Opening up the Staff Pension Scheme

The Board of Directors amended the EIB’s Staff Pension Scheme Regulations in order to facilitate the transfer of capital sums accrued under previous pension schemes towards the purchase of insurance years. This relaxation of the rules should assist recruitment, with- out compromising the financial robustness of the pension scheme. Practical implementation of this facility, however, presupposes the con- clusion of transfer agreements with the ex- ternal pension schemes concerned, an aspect

which still poses problems in a certain num- ber of Member States.

Recruitment and workforce

In 1999, the Bank took forward its proactive policy of seeking out suitable candidates, em- ploying a variety of techniques such as the creation of “jobs” pages on the Internet. It participated in various recruitment forums in different countries, maintained contacts with postgraduate circles and set up a file of young graduates constituting potential candi- dates, targeted according to the Bank’s needs. For the first time last year, a precisely equal number of male and female staff was recruited, while female candidates accounted for one third of executive recruitments. At the end of December 1999, the EIB’s staff complement ran to 1 011, an increase of 1.3% on a year-on-year basis. Human resources Staff comple- ment Executive staff Administrative and support staff 1996 948 535 413 1997 977 562 415 1998 998 581 417 1999 1 011 590 421

Ethics

Codes of conduct

A series of rules on professional ethics are en- shrined in the Code of Conduct for staff, adopted by the Management Committee in 1997. The Bank has since extended this exer- cise to its managing bodies. In 1999, the Board of Governors approved a Code of Conduct applicable to the members of the Management Committee. Codes of Conduct for the Board of Directors and the Audit Committee are currently being finalised.

Fraud prevention

In the light of recent events at Community level, the Bank’s management placed empha- sis on reviewing its policy for combating fraud in order to ensure optimum protection of the financial interests of both the EIB and third parties. Accordingly, the Management Committee approved a set of rules and pro- cedures for notifying suspected cases of fraud involving members of staff or the Bank’s managing bodies.

Internal organisation

The Bank regularly adapts its internal organi- sation to accommodate changes in its working environment and developments in its activity. The following changes have occurred since publication of the previous Annual Report and are reflected in the organisation chart on pages 68 and 69;

- An independent Financial Control Depart- ment has been set up.

- In the Projects Directorate, the responsibili- ties and remits of the different departments

have been redefined. The Directorate now comprises three Departments (Infrastructure, Energy and Industry) as well as a Coordina- tion Division.

- The former Administrative Services Depart- ment has been split into two Divisions, one in

charge of purchasing and administrative

services – attached to the Corporate Affairs De- partment, the other responsible for common services and facilities management – attached to the General Secretariat.

Internal departmental and allied develop- ments are covered in Bank publications and incorporated in the regularly updated organi- sation chart on the EIB’s Web site.

Staff

A substantial number of changes have also occurred at senior management cadre level, chiefly as a result of retirements.

- In the Directorate for Lending Operations in the European Union, Thomas BARRETT has been appointed Director of the Department

for Operations in Ireland, the United

Kingdom and the North Sea as successor to Thomas HACKETT, now Director of the Office for Operations in Italy. Antonio PUGLIESE has taken over from Ernest LAMERS (*) at the head of the Department for Operations in Greece, Finland, Denmark and Sweden. Jos VAN KAAM, appointed Director of Coordina- tion, has succeeded André DUNAND (*). - In the Directorate for Lending Operations outside the European Union, Fridolin WEBER- KREBS (*) has relinquished his duties. Claudio CORTESE has been appointed Director of the Department for Operations in Asia and Latin America as successor to Patrick THOMAS, sec- onded to the Asian Development Bank as Executive Director.

(*) denotes staff members who have taken retirement.

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- In the Finance Directorate, Jean-Claude BRESSON has taken over from Ulrich DAMM (*) as Director of the Capital Markets Depart- ment, while Ms Barbara BARGAGLI PETRUCCI has been appointed Deputy Director of this Department.

- In the Financial Control Department Luis

BOTELLA has been appointed Deputy

Director.

- In the Operations Evaluation Department,

Horst FEUERSTEIN has succeeded Jean-

Jacques SCHUL (*) as Departmental Director. - In the Legal Affairs Directorate, Ms Pauliine KOSKELO has been appointed Co-Director.

- In the Human Resources Department,

Gerlando GENUARDI has been nominated as EIB representative on the Board of Directors of the European Bank for Reconstruction and Development as successor to Roger LAVELLE. - In the Administrative Services Department, Adriaan ZILVOLD (*) is relinquishing his duties.

Other developments

During 1998 and 1999, in common with other financial institutions, the Bank concentrated much of its effort in the Information Technol- ogy domain on preparations first for the introduction of the euro and then for the 2000 date change.

The Bank launched a strategic review of its information systems during 1999. This led to the identification of a series of key areas for development to ensure that these systems cor- respond to the Bank’s future requirements.

These include a possible consolidation of the existing “automation” systems, which support financial operations and administration; build- ing on this, effort is to be focused on the es- sential requirement of making information available in a timely, secure and reliable man- ner in order to facilitate decision-making and to help control risk. Investment is also planned in the infrastructure, particularly to put the Bank in a position to exploit future opportu- nities offered by the Internet.

These technical innovations will, in parallel, call for changes to working processes and methods, enabling the Bank to reap maxi- mum benefit from its investments and to re- main in line with rapid developments on the financial markets.

The Board of Directors wishes to thank the staff of the Bank for their productivity and the quality of their work, performed with commitment and professionalism throughout the year; it would like to encourage continu- ance of such efforts in support of the Bank’s activity.

Luxembourg, 20 April 2000

The Chairman of the Board of Directors Philippe Maystadt

The Board of Directors (see page 65) ensures that the Bank is managed in keeping

In document European Investment Bank annual report 1999 (Page 72-77)