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EU reverses funds decision

Slovakia is to receive its entire 106 million euro ($95 million) aid package from the EU in 2002 after the European Parliament's Budget Committee reversed last month's decision to cut 15 million euros from the package due to suspicions of financial mismanagement and corruption.

Commission Chairman Carlos Costa Nevez said there was now "sufficient evidence" that Slovakia had reinforced its struggle against corruption and improved its system of financial checks.

As a result of the mismanagement suspicion, former Deputy Prime Minister for Integration Pavol Hamžík resigned from the government earlier this year. Other officials were also dismissed.

An investigation subsequently failed to confirm mismanagement, but did confirm "nontransparency," favouritism and conflicts of interest.

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