This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/europe/7256045.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 2 Version 3
Call for MEPs' cash fraud probe MEP fraud claims to face scrutiny
(about 7 hours later)
The EU's anti-fraud office has been urged to investigate the way MEPs spend money given to them to pay their staff. The EU's anti-fraud office is to look at an internal report amid claims that it has uncovered embezzlement by MEPs.
A secret internal audit is reported to have found that MEPs are not accounting properly for the £100m a year allocated to staff costs. The confidential audit is reported to have found that MEPs had not accounted properly for the £100m a year allocated to staff costs.
The call for a probe came from Lib Dem MEP Chris Davies who said there had been massive fraud and embezzlement. British Lib Dem MEP Chris Davies, who has seen the report, said he was shocked by the scale of alleged fraud.
In one case an unnamed MEP reportedly took money but employed no-one, and another had just one member of staff. But European Parliament officials said it did not deal with individual Euro MPs or reveal cases of fraud.
I think the allegations within this report from our own auditors should lead to the imprisonment of a number of MEPs Chris DaviesLiberal Democrat MEP class="" href="/1/hi/world/europe/7229259.stm">Moves to halt EU gravy train Possible inquiry
Franz Bruner, director general of Olaf, the EU's internal anti-fraud squad, said he had demanded to see the audit report by the end of this week. I think the allegations within this report from our own auditors should lead to the imprisonment of a number of MEPs Chris DaviesLiberal Democrat MEP Moves to halt EU gravy train
An Olaf spokesman said the report would take up to two months to analyse and a decision would then be made on whether an inquiry should take place.
Mr Davies is one of a group of MEPs on the European Parliament's Budget Control Committee who were allowed to look at the report under surveillance and without taking notes or copies.Mr Davies is one of a group of MEPs on the European Parliament's Budget Control Committee who were allowed to look at the report under surveillance and without taking notes or copies.
"This report is dynamite - and makes the Derek Conway affair at Westminster look like small change," said Mr Davies. In one case an unnamed MEP reportedly took money but employed no-one, and another had just one member of staff.
"When I looked at this report my first reaction was to laugh at the outrageous extent of the abuses. "This report is dynamite," said Mr Davies.
"Then that feeling turned to anger and the realisation that the police or the anti-fraud people should be looking at this."
Embezzlement and fraudEmbezzlement and fraud
Mr Davies told the BBC that the document had to be placed in the public domain and legal proceedings should follow. He told the BBC that the document had to be placed in the public domain and legal proceedings should follow.
"Let's be quite honest. I think the allegations within this report from our own auditors should lead to the imprisonment of a number of MEPs. I think it's embezzlement and fraud on a massive, massive scale.""Let's be quite honest. I think the allegations within this report from our own auditors should lead to the imprisonment of a number of MEPs. I think it's embezzlement and fraud on a massive, massive scale."
Franz Bruner, director general of Olaf, the EU's internal anti-fraud squad, said he was launching an inquiry and had demanded to see the audit report by the end of this week. British Labour MEP Gary Titley said it was clear the system had been abused.
Direct payments "The reality was, before 2006 and this report is about pre-2006, the rules were far too lax. They have been improved," he said.
Every MEP is eligible for about £130,000 a year to pay for staff.Every MEP is eligible for about £130,000 a year to pay for staff.
One MEP who has seen the report said that direct payments had been made to political parties by MEPs, he said. The audit is reported to spotlight payments to non-existent staff, transfers to political parties, a failure to legally register companies, and the non-payment of social security costs.
There are apparently many cases of MEPs failing to make social security payments for alleged employees.
BBC News Europe correspondent Johnny Dymond said the audit had thrown up some very uncomfortable examples of sloppy administration at best, and fraud at worst.
A spokesman for the parliament's president declined to comment on a report which he said was as yet unpublished.A spokesman for the parliament's president declined to comment on a report which he said was as yet unpublished.
The details are due to be discussed by the budget control committee on Tuesday.The details are due to be discussed by the budget control committee on Tuesday.