MEPs Veto Moves to End Fraud Scandals
by David Rennie in Brussels

Members of the European Parliament rejected moves yesterday to clean up scandal-ridden arrangements for their travel allowances and expenses. Their decision prompted anger and disbelief from British MEPs, who voted for proposed reforms.

In a series of votes carried by a margin of six to four at a full session of the parliament in Strasbourg, MEPs resisted proposals for audits of their accounts and turned down calls to impose sanctions on those found to have defrauded the taxpayer.

The votes "gave an all-clear to embezzlement", said Chris Davies MEP, the leader of the British Liberal Democrats in the parliament.

Mr Davies expressed particular disappointment after his fellow MEPs voted to continue a trust-based system for payments into the parliament's private pension scheme.

The scheme is wide open to fraud. MEPs who choose to join can pay up to £664 a month into their pension plans, with their contribution deducted from their office expense account, not from their salary. In theory, MEPs then reimburse their office accounts for pension contributions but no checks are carried out.

"I reimburse my contribution every month but there is no need to present receipts for office expenses and there's no audit. You could use the allowance for any purpose you like," said Mr Davies.

The parliament also voted to maintain its travel allowance scheme. By buying cheaper fares in advance, or using budget airlines, a British MEP could easily make up to £500 profit in a week.
The Daily Telegraph, 13th April 2005

Further Resources
Ten Minutes to Midnight by Phillip Day
Vigilance by Ashley Mote
The Real Face of the European Union, a PAL documentary video

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