Controls over the European Union's €98 billion budget have been criticised as insecure and unreliable in a leaked paper from the EU's Court of Auditors.
The paper supports many of the claims made by Ms Marta Andreasen, the Commission's former chief accountant, who was moved to another job in May after just four months. It says the Commission's central accounting system has "obvious risks as regards its reliability", which stem in particular from its "lack of security".
The report says: "The Commission has been warned about them, but to date has not taken any remedial action."
The 1999 and 2000 annual reports by the Court of Auditors criticised the Commission's Sincom 2 accounting system, but the new paper suggests anger that big problems persist.
The Court of Auditors confirmed yesterday that the working paper was drafted by Mr Colin Maynard, a director of the court, and was sent to the Commission for its comments in February.
Officials claimed the paper might be shelved because it "contained inaccuracies and the tone of the language was inappropriate". Referring to numerous attempts to co-ordinate the various elements of the system, it says: "Failures abound and are a waste of public funds (it is impossible to put a figure on the amount involved)."
It says systems had developed where the Commission's accountants could not "present reliable accounting data on the amounts advanced to third parties". The court document reinforces the criticisms made by Ms Andreasen, who refused to sign the EU's accounts for 2001 and was subsequently moved to an advisory job.
- (Financial Times Service)