Kinnock back in the firing line as report backs EU whistleblower
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Your support makes all the difference.A row over lax EU accounting standards burst into new life yesterday when the European Commission was warned it needed to do "a great deal" to correct a catalogue of financial failings in the books.
An annual report presented by the EU's financial watchdog highlighted "persistent" defects in the accounting system – about which the auditors have been sharply critical since 1994.
The Court of Auditors' findings, released yesterday, are particularly sensitive because of claims by the Commission's former chief accountant, Marta Andreasen, who was suspended after making explosive allegations that the EU's books were open to massive fraud. The court did not go that far, noting that accounts for 2001 "reliably" reflected the financial situation.
Nevertheless, the document increases the pressure on the Commission to speed the pace of financial reform. The Commission says reforms are under way and that plans to modernise its accounting methods will be unveiled before the end of this year.
But the Court of Auditors' findings triggered fierce criticism from the Conservative MEP Chris Heaton-Harris, who has lambasted the Commission vice-president, Neil Kinnock over the suspension of Ms Andreasen. "If any private company prompted a financial report like this there would be calls for a change of management," Mr Heaton-Harris said.
The Labour MEP Eluned Morgan, Socialist group spokeswoman on Budgetary Control in the European Parliament, accused the Commission of "dragging its feet in reforming the well documented failures of the system.
"The Court of Auditors have been pointing out failures in the accounting system since 1994. Despite repeated warnings, the Commission has been painfully slow in making changes," she said. "There is still no comprehensive accounting system and the Commission is unlikely to complete radical reform until 2005. This is an unacceptable degree of complacency."
About 80 per cent of the EU's €95bn-a-year budget is managed by national and regional governments, to administer farm subsidies, regional and social development aid.
The court says huge mistakes are still being made. For example, 103 farmers in Northern Ireland had claimed for more sheep than were culled during the foot-and-mouth crisis and 17 had no sheep at all on their farms when the precautionary culling took place.
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