Spending watchdog refuses to sign off 'fraudulent' EU accounts for 13th year in a row - News - Evening Standard
       

Spending watchdog refuses to sign off 'fraudulent' EU accounts for 13th year in a row

The EU's spending watchdog has refused to sign off Brussels' accounts because of fraud and incompetence - for the 13th year in a row.

In yet another withering assessment of lax financial controls, the European Court of Auditors said there were insufficient checks on how more than half of the EU's £75billion budget is spent.

Officials claimed weaknesses in monitoring handouts had not been eliminated and complained of neglect, fraud and 'irregularities'.

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Joke: Even golf clubs can now be offered agricultural aid under barmy EU rules

One widespread swindle involved farmers in Italy, Spain and Greece claiming EU handouts for olive trees which did not exist.

Auditors found nearly a quarter of farmers had declared at least 5 per cent more plants than they owned - often netting extra cash.

Meanwhile, changes in the way agricultural aid was allocated meant it was now available to golf clubs, horse riding stables, country clubs, railway companies and city councils.

In a report earlier this year, the Court also found more than half of EU-funded projects in Romania and Bulgaria 'were not operating as intended', including a £2million bridge that could not be used because there is no road at one end.

On internal financial policies - EU administration, staff costs and running buildings - auditors said 'transactions are still affected by significant errors'.

The report, covering the 2006 budget, refused to give the all-clear to almost 60 per cent of EU spending, although it accepted some procedures had been tightened up.

Conservative MEP Richard Ashworth said: "The constant inability to satisfy the auditors is unacceptable. After 13 years, the EU has begun to look like a banana republic.

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