Fraud costs European Union £5bn a year

Conservative MPs have repeated their demand for the European Commission to appoint a commissioner to fight fraud in the European Union after a Lords report claimed that fraud is far higher than the Commission has acknowledged.

The report from the House of Lords’ EU committee said that fraud may cost the European Union €5bn or more a year - far higher than the €404m figure for fraud given by the European Commission.

The EU’s anti fraud system has a “number of weaknesses” and its estimate of fraud “offers only a glimpse of the levels of fraud perpetrated against the EU’s budget,” the Lords report said. Types of fraud include the fraudulent use of EU funding by a member state and VAT scams such as "carousel" fraud, the report said.

One Conservative MEP, Marta Andreasentold AccountingWEB...

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Comments

and we are surprised ....

JC | | Permalink

because ..... ???

Fraud and the EU    1 thanks

mikefleming3028 | | Permalink

Pigs with their noses in the trough comes to mind.

Locutus's picture

What surprises me ...

Locutus | | Permalink

Is that the fraud figure is "only" thought to be €5bn.  I suspect it is much higher than that.

The fraud is against people...

Trevor Scott | | Permalink

....not the EU, who themselves redefine maladministration.

itp3asso's picture

Theegg

itp3asso | | Permalink

J. Test

itp3asso's picture

Fraud. Eu

itp3asso | | Permalink

It's the EUSSR. Morphing from the EU.!!!

soon we ll have people being put in jail then tortured then done away with for whistle blowing these particularly heinous financial abortions ---a la litvinenko. Magnitsky et al ...

EU Fraud

louisVW4 | | Permalink

This will NEVER go away. We are dealing with human beings whose natural tendency is toward greed! Try telling an official in Bulgaria who earns less than a dustman in this country that he mustn't accept bribes in return for awarding contracts!

Of course the priority should be to prevent fraud, but much of it is carried out by those dishing out the money to those working even harder to steal it. 

If the EU had better investigation systems and processes, with more funding and empowerment for the investigative organisations, then they would start to close the gaps the fraudsters are able to slip through, and equally important, show that there is no hiding place for those trying to defraud the system from within through the 'misplacement' of information which prevents successful sanctions, and in doing so, encourages even more fraud because they know nothing can or will be done.

The EU (or any Government for that matter) doesn't want their taxpayers and voters to know the hard earned money they are paying in taxes, at a time of great austerity, and which is being handed out to every tin pot country asking for development aid, is being lost to fraud and error.