A probe has highlighted problems in the audit trail of money administered by Government Office North West (GONW).
The investigation by the European Commission (EC) related to billions of pounds of funding for regeneration projects given by Brussels to the English regions since 2001. Six regions had their funding frozen in the wake of the probe.
London, the north east, the West Midlands, the east and Yorkshire and the Humber are understood to be set to have that freeze lifted. But problems remain in the north west - and Manchester-based Euro-MP Arlene McCarthy has warned the region could have to repay some of the cash.
"I have been talking to the EC because I wish to ensure there is no fraud or irregularities and that my region can continue to receive funding," Ms McCarthy said.
Evidence
"If there is any evidence of mismanagement or fraud or gaps in the audit trail there will have to be repayment."
A spokesman for GONW said the region was in `discussions' with Brussels.
The key issue relates to the audit trail for regeneration spending. Political sources said the paperwork systems demanded by the EC had become increasingly complex.
There is no suggestion any individual has unlawfully benefited financially but the allegations will mean the auditing record will be examined.
The European Court of Auditors found weaknesses in the various English regions as long ago as 2005. Funding was frozen after Brussels became concerned the situation was not being addressed.
A spokesman for the Department of Communities and Local Government said `robust' action had been taken.
Regeneration money from Europe is provided largely through European Regional Development Funds (ERDF) and the European Social Fund (ESF).
ERDF, which in England is overseen by the government offices in the regions, was set up in 1975 to stimulate economic development in the least prosperous parts of European Union countries. It is worth around £3.5bn a year to the English regions and provides regeneration grants.
ESF, which is managed by the Department for Education and Skills, also provides funding for projects. Tweet

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Regenerating homes that will be fit for slums within a few years? homes that have damp/black mould Etc in ancoats and appartments that are badly designed and built.Weve been through these badly built properties before and it cost the taxpayer millions but we learnt very little from the 1970/80s/90s we are still building homes that will last for less than ten years.the cresents in hulme the flats on grey mare lane and these are just two muliti million pound messes ..
It is about time UK pull out of EU instead of paying them millions in 'fine' that goes to the French farmers instead. Keep the money for ourselves!
So Ms McCarthy has spresumably returned from her visit to LA in the summer to help sort out Manchester's gun problem(?)
http://www.manchestereveningnews.co.uk/news/c/1013311_mp_visits_gang_capital.html
Like countless others I am eagerly awaiting her report in order to counter those sceptics who thought she was going on an all expenses paid Summer jolly at our expense.
http://www.manchestereveningnews.co.uk/news/c/1013311_mp_visits_gang_capital.html
So she has been talking with the EC to "ensure there is no fraud or irregularities"
She herself admits that "If there is any evidence of mismanagement or fraud or gaps in the audit trail there will have to be repayment."
So what is she saying?
How can she say she is talking with the EC to ensure that there is no fraud or irregularities. This is an issue for auditors to decide, not an ordinary MEP.
or is she just grandstanding to get her name in the papers?
Could this be why the Toxteth Street Regeneration Scheme seems to have stalled? Even though they seem to have started work behind the old school. I wonder, let's wait and see.
It's British money anyway, money given to the EU by the UK Government which is running at around 10 billion pounds per year and increasing by one billion each year, as agreed by Tony Blair. I can't give the official figure as our Government seems to keep this secret and it never gets mentioned in the budget speech or anywhere else. It's why we pay VAT.
We are all being conned by the EU we are led to beleive we cannot survive without the EU?We did and we can,look at other countries who are not part of the EU they do very well selling inti europe without being part of it,weve been sold down the river by bad descisions made by politicians over the years.
i hope they ask salford council where 88 million pounds of regeneration money as gone in langworthy because nobody round here as a clue having said that i know 22.2 million as gone to urban splash for supposedly affordable housing if you call 140.000 affordable for a 2 up 2 down terrace this realy needs investigating
ken and sue, langworthy
This lot call it regeneration but if you look behind the scenes its just a total waste of money with a lot of very very highly paid white collar workers who will run away from manchester once all the money has run out.Weve been sold a pup.As usual we all fall for it again we did in the 1960s/70s/80s ,and just look at all those houses and shopping areas they built ,most of them have been demolished or are so badly designed that people dont use the shopd and the homes are worse than the old terraces they demolished in the first place.They are building garbage homes and lots of appartments to make millions.Within five years most of the appartments will be let to private landlords and then they start to decline once again.