Kinnock tried to gag me claims EU whistleblower

Publication date: 2004

by GRAEME WILSON, Daily Mail

Neil Kinnock stood accused last night of trying to cover up a multi-billion pound scandal at the heart of the European Union.

The European Commission's former chief accountant claimed the ex-Labour leader - who is Britain's senior EC commissioner - tried to

silence her when she uncovered evidence of mismanagement, incompetence and fraud in the EU's £63billion budget.

Marta Andreasen says the crisis could be worse than the business accounting scandals over Enron and WorldCom because it is impossible to trace EU accounts.

She warned that a total absence of basic accounting standards and effective computer systems leaves EU budgets 'massively open to fraud.'

But when she raised her concerns with Mr Kinnock - the man responsible for cleaning up Brussels - she claims he moved her to another job and tried to stop her giving evidence to the European Parliament.

She also claims she was threatened with the sack and faced harassment and that she was followed in Brussels and her private e-mails were hacked into.

Last night, the Tories' Shadow Cabinet minister David Davis demanded an inquiry. 'The Government should seek an investigation from an independent, non-commission body into this as a matter of urgency,' he said.

'If it is proved that Commissioner Kinnock has failed to put the commission's financial house in order, then he should go.'

Euro-MPs estimated up to £5billion might have been lost in fraud - just under half of the £12billion that UK taxpayers give Brussels every year.

Mrs Andreasen's allegations revived memories of the scandal three years ago which led to the mass resignation of all 20 EU commissioners.

That move was prompted by the commission's attempts to silence Paul van Buitenen, a minor EU official who turned whistleblower to expose fraud and mismanagement.

By contrast, Spanish-born Mrs Andreasen is one of the EU's top officials. She was appointed in January to overhaul its finances, but just five months later was removed from her job.

Mr Kinnock was one of only four commissioners to survive the cull three years ago and was handed the task of reforming the EU. But, despite his repeated claims that Brussels is changing, Mrs Andreasen said he has failed in his task.

Following her appointment in January, she quickly discovered 'dangerous failings at the heart of the system,' she told a Westminster press conference yesterday.

Computer systems were crippled by 'serious and glaring shortcomings' and even basic accounting standards - such as double-entry book-keeping - were not used in Brussels. There was also a lack of qualified staff,

When she raised her concerns with the EU's budget commissioner Michaele Schreyer, she says she was discouraged from pursuing the issue.

Mrs Andreasen claims she was then put under pressure to approve accounts she knew were untrue. When she refused, she says, she was threatened with the sack.

In desperation, she wrote to Mr Kinnock and EU president Romano Prodi. But the commission tried to silence her, she claims. 'There was a cover-up,' she added. She had only one meeting with Mr Kinnock, at which he told her she was being moved to an administrative job because of a 'personality clash' with Miss Schreyer. No reference was made to her complaints.

Mr Kinnock is then said to have asked EU legal officers to see if Mrs Andreasen could be stopped from giving evidence to European Parliament committees.

One of Mr Kinnock's aides later warned her that she would be in breach of her contract if she spoke publicly about her concerns.

'Not only has nothing been done to address well-known problems, but there are attempts to silence those who do wish to address the issues constructively,' she said.

Mrs Andreasen confirmed that she had been suspended by her previous employers - the Organisation for Economic Co- operation and Development - two years ago after uncovering accounting irregularities. However, Commissioner Schreyer was aware of this when she decided to draft her in.

Last night, the commission rejected Mrs Andreasen's claims, saying she was moved after a 'total breakdown in relationships' with her staff.

Mr Kinnock's spokesman denied the ex-Labour leader had tried to gag anyone and played down the scale of the problems in the EU. 'We have procedures in place that are satisfactory but which can be improved and which we are working on,' he added.

But the treatment of Mrs Andreasen exposes the hollowness of Mr Kinnock's pledge last year to help and support whistleblowers.

In December, he declared that he wanted to provide confidential advice to EU staff 'about the best means of disclosing possible irregularities safely and legitimately.' His officials later described the issue as a 'priority'.

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Persons: Marta Andreasen (European Commisssion)