By Ambrose Evans-Pritchard in Brussels
(Filed: 14/10/2004)
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Marta Andreasen, the former chief accountant, was dismissed without pay following a 28-month inquiry after she spoke out against the European Union's "Enron-style" book-keeping.
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Mrs Andreasen was suspended from her £85,000 job in May 2002 for breaking "hierarchy lines". She contacted the Court of Auditors and Euro-MPs after superiors ignored her warnings, later telling the press that the EU's £63 billion budget was "an open till waiting to be robbed".
A leaked memo to Mr Kinnock from the EU's senior auditor said her claims were "factually and substantively correct" and her suspension "would be a serious blow to reform, sending a signal that the old ways of keeping things from happening still work".
The heart of Mrs Andreasen's complaint is that the commission lacks "double-entry" book-keeping, now routine in the private sector, allegedly making it possible to divert large sums of money without leaving an electronic fingerprint. She found a £130 million discrepancy between two sets of books for 2001. This has never been fully explained.
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