MEP calls for inquiry over Euro-fraud

The European Commission last night faced a call for a parliamentary inquiry into the "systematic cover-up" of fraud within its tourism unit.

Edward McMillan-Scott, the Tory Euro-MP for North Yorkshire, made the demand after new evidence on the scale of corruption and mismanagement among officials in charge of millions of pounds of tourism grants.

The commission's annual report on the fight against fraud revealed that police investigations into the tourism unit uncovered "large payments to members of commission staff in return for the award of grants". Mr McMillan-Scott said it was the first time the Commission had admitted that officials had taken backhanders.