EU accounts rejected for 11th year

IRELAND was again the fourth biggest recipient of EU money last year despite having the union’s second highest GNP, according to the audited accounts.

But auditors have refused to sign-off the EU’s annual accounts for the 11th consecutive year.

Hubert Weber, president of the European court of auditors, offered a damning indictment of accounting practices, telling MEPs that “the vast majority of the payments budget was again materially affected by errors of legality and regularity”.

Ireland received €2.775bn and contributed €1.25bn - giving the country a total of €1.52bn in 2004 in agriculture and structural funds.

The only countries to receive more funding were Spain, Greece and Portugal.

The top four net contributors in monetary terms - after receiving funds back - were Germany, Britain, Italy and France.

Major discrepancies were found especially in agriculture spending that accounts for almost half the annual budget. The auditors blamed the commission for not having its new auditing system fully in place while member states, which control 80% of spending, came in for much criticism for a lack of proper controls.

Checks on claims by Irish farmers showed them to be among the most accurate and honest in the 15 old member states, although €26.3 million of the €1.845bn received had to be returned. About 15% claiming aid for crops had errors, such as overstating the amount owed, while 7% of those claiming suckler cow premiums were partially rejected and 0.7% totally rejected.

Ireland’s representative in the Court of Auditors, Máire Geoghegan Quinn said while there was an improvement in the accounts this year, it was still not good enough.

“With 25 members and a budget last year of €105bn we need systems in place that will show exactly how the money is being spent and ensure the correct amounts are going to those legally entitled to them.”

The greatest problems were found in Greece where controls are notoriously lax. For instance, farmers’ unions control the input of all data into the computer system and the auditors discovered they change it even after the claims period has ended.

The changes appear to increase the amount farmers are due and the auditors believe that last year alone this cost the EU at least €10m - but it could be significantly more.