Fighting against fraud
Thereβs a tussle going on between the powers that be at the European parliament and the over allegations of fraud. 
As a member of the budgetary committee, Mr Davies asked for .
He refused to sign an agreement not to disclose anything, but was shut in a room and allowed to read the report (on years 2004-2006) while forbidden to copy it or even take notes.
Mr Davies told me that he is in no doubt that the report reveals widespread maladministration and that fraud has taken place.
Third parties
At the moment MEPs get an allowance of Β£130,000 for office staff. It appears that the money is usually paid to a third party, known as a service provider, who then should pay the assistants.
The service provider is usually a firm of accountants or a political party. Mr Davies says that it was obvious from the report that some of the cash was paid to fictional companies.
Other companies may exist but they are not registered in Belgium, as required by law. Some cash was paid to members of MEPs' families. Some was paid to political parties and kept by them rather than used for the proper purpose.
Mr Davies says he has no doubt that some people should go to prison for this and has alerted the EUβs fraud office. The parliament, however, says no specific individual examples of fraud were found and they donβt need to send the report .
Furious response
Other MEPs are also furious. I spoke to Labourβs leader in the parliament, Gary Titley, who told me that people already thought MEPs were crooks, despite all their hard work, and this would make things worse.
He says that the rules have been tightened up somewhat because MEPs now have to show pay slips and the like to back up their spending claims.
He wants a system like the House of Commons where an independent arm of parliament, the Fees Office, pays the money directly to the people employed.
Thatβs why for MPs the only way to abuse the system is to βemployβ a friend or relative.
How open are our political parties?
Labour MEPs do submit their claims to an independent audit. This is not published but I have seen the letter from the auditors to Mr Titley saying that everything was above board.
Labour is calling for all MEPs to submit to such an audit. But is this good enough? Why not just publish the details of how much they spend and on how many people? Mr Titley told me a lot of people wouldnβt like others knowing what they earn.
Is this good enough?
Obeying the rules
The Conservatives donβt have any such system, saying merely that their MEPs are expected to obey parliamentary guidelines. The Lib Dems have no internal guidelines although .
Chris Davies also raises an interesting, but controversial point.
He says that in Northern Europe and Scandinavia much higher standards are expected and what would be seen as dishonest there is just normal practice in the South.
Iβm told one well known Italian MEP was boasting that he and many of his colleagues had set up false companies to channel money back into their own pockets and it was all within the rules. Is it fair to regard the line between olive oil and butter as also the line between honesty and corruption?
Iβm Mark Mardell, the ΒιΆΉΤΌΕΔ's North America editor. These are my reflections on American politics, some thoughts on being a Brit living in the USA, and who knows what else? My 
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I guess that if there is really any frauds then some Italian politician will be involved...
Surely those of us who hate the "EU" spend too much time preaching to the converted. Suerely we need a new political party? We have UKIP but it isn't working. It is bogged down with domestic issues and its last results were abysmal. We have the BNP wich I at least find unacceptable. Cons, Libs and Labs are all not going to get us out of the hated "EU"
My unhumble suggestion: A new party hopefully supported by some rich people, of which I am not one. Programme: Withdrawal from the "EU". Reform of our rubbishy pseudo-democracy, which is at the bottom of all our problems. And not a lot else. Sitting MPs who join us to continue as our candidates. Other candidates to be chosen by a sort of "Primary" in which people may pay one to five pounds to help chose a candidate to suit them and not those at the centre. Get in, do the job and then dissolve ourselves. Any takers?
Is it fair to regard the line between olive oil and butter as also the line between honesty and corruption?
By and large, yes!
Politicians, crooks? That really isn't news. The problem with Brussels is that it is so far removed, so confusing and so covered in red tape that they really can get away with the most blatant fraud. It, and the whole EU bureaucratic nightmare has to be stopped.
Olive oil or butter? It isn't an issue of cultural traditions, it is an issue of good government, something Brussels knows little about.
With the entire global economy increasingly being based on "outsourcing" -it is indeed time to throughoughly investigate the way outsourcing can be used as a pork barrel to fill the pockets of often unidentified people in sometimes dubious ways.
By chance, I am now reading Tom Bower's Book "Maxwell The Outsider" (1992 Viking). From the book (so far) it seems that Robert Maxwell built an empire based on insider trading between his own companies. Indeed, it appears that Maxwell pioneered the technique in Britain -and has, as a result possibly done more damage that is easilly imaginable. Apart from the general collapse of any form of business ethics -a process which exploded in Thatcherite Britain but has apparently been continued under a Blairite Labour party -the practical consequences for peoples' every day lives must be enourmous. I seem to remember hearing about a building boom in London which created nothing but empty offices with expensive rents -while making huge paper profits for their owners simply by being traded privately within a network of companies with the same owner. later, I heard that when Britain entered the common market -the same process was used to replace much of Brussels with ugly skyscrapers.
Personally, I would also be interested in further information regarding possible links between Maxwell and the various security services. Maxwell originally published "Leonardo" magazine (an important journal linking art and Science -at the heart of promoting the cultural use of technology ) -which is now published by MIT. MiT also played an important role in the ARPA projects through which the US military funded the research that has now resulted in the global dominance of the US in both the internet and the computer industry. The ΒιΆΉΤΌΕΔ has already published an article "US plans to 'fight the net' revealed" (27 January 2006) on CIA involvement with the internet -so one can wonder how much US military funding has gone into "social engineering" our current use of technology.
Clearly, whatever the ideological implications are, "outsourcing" of military and other government projects is an effective way of financing the administration's friends in not directly obvious and traceable ways -in many countries.
Today, the headlines on a Philippine TV news site (GMA) read: "Persistent allegations of corruption in the government have eroded the gains of the two People Power revolutions that had toppled two regimes in the past, former president Fidel Ramos said Friday". Interestingly, the current scandal involves administration machinations around a "broad-band" contract as part of the governemnt's "cyber-education" project.....
Quite often it seems that there is nothing quite as profitable as (outsourcing) "non-profit" projects.....
This is ridiculous. How can these people behave in this brazen fashion? How can the European Parliament put all these restrictions on what we are allowed to know? Surely there must be some policies or guidelines laid down somewhere that require opennness and oversight. It is really alarming that MEPs can adopt such attitudes. In this climate we will never have the accountability to the electorate that many of us are seeking.
Well, you just can't trust a load of devious johnny foreigners can you? Thank god this sort of thing doesn't go on here!
Ahem.
This is just another self-publicity seeking campaign by Chris Davies MEP.
Look at his record he has a history of making controversial statements and claims....legalising cannabis being his most notorious one.
What gets me is that the journos desperate for a story and to sell papers fall for it every time and never let the full facts get in the way of a good story.
Surely just EU harmonisation of corruption? It confers an unfair advantage if some national cultures are less corrupt than others.
Surely just EU harmonisation of corruption? It confers an unfair advantage if some national cultures are less corrupt than others.
"Is it fair to regard the line between olive oil and butter as also the line between honesty and corruption?"
Ah, now I understand. Because of global warming, MPs are planting olive trees in Westminster!
Damned devious johnny foreigners! Can't trust 'em one bit, eh what!
Thank God we live in England and that sort of thing don't happen!
Hrumph.
Β¨the line between olive oil and butter.Β¨
What would be the metaphor for the new EU members from the east? Sour cream, potato dumplings, cottage cheese (tvorog!).
Or do they not need a metaphor as most Brussels MEPs don't know anything about these countires, despite that fact that corruption there is just as bad as in Italy or Greece.
If true, this would be very sad and a blow to the efforts to make EU spending fully transparent.
However, whenever scandals like that erupt, I tend to say that Parlamentarians are truly representatives of the people: Give them a chance to steal and they will.
People just ain't no good, to quote Nick Cave. We need governance, not naive trust.
I got confused.
I thought the report was about corruption and fraud at Airbus, BAE, Deutsche Post, VW, etc.
A latter-day Hercules is certainly needed, it seems, to clean out this Brussels version of the Aegean stables. Clearly there has been fraud on a grand scale. So in return, there should be prosecutions & punishments on a grand scale too. Only then will the EU body politic be cleansed of its canker of fraud, corruption, venialism, deceit, lies, etc etc etc.
If the self-righteous staff & MEPs, President included, of the EU Parliament were people with any sense of honour at all, they would all demand a thorough investigation, some of them voluntarily standing down until the truth was out. But will any one on the EU gravy-train do so? Not a chance.
And why should we pay for their deceit & fraud? If the EU & its degenerate Toy Parliament won't reform itself - & quickly, then the answer is simple. The UK is "Better Off Out"!
How can Brussels give any judgements or directives on fraud when Belgium is one of the most corrupt societies in the EU. It is the only state I know where "Black" money is readily given as undisclosed salary to reduce taxation and is an accepted part of society.
EU corruption?
Who'd have ever guessed that would happen when we joined up with the French and Italians?
I have been disgusted with the fraudulent ways of MEPs and the way they've taught MEPs from new EU countries the ropes on how to milk the system. The fact that no Auditor will ever properly sign off the books is more proof than anyone needs to know.
One story I found particularly hilarious (though nothing to do with the amounts of money stolen from us, tax payers) is the power trip over the the no-smoking ban. Smoking was declared illegal in Strasbourg (excuse spelling) but in a matter of hours, MEPs didn't like the law they are preaching all over their own countries.
Instead, they decided to smoke in offices in the EU Parliament where they never ventured before just to upset and show the non-smokers who's boss. Low and behold - they got away with it whilst the rest of us have to shiver outside in the cold if we want a fag (clinically speaking, I haven't smoked for over a year but I'm still very incensed with their attitude
Everybody knows that, on a Friday, all an MEP has to do is 'sign in' at whatever time in the morning, and walk straight out to get their Easy jet flight home (Oops B.A. Business class) for a nice long weekend and report for duty before 3 p.m. on Monday for that day to count as being present for the days' business.
They must think we are all eternally grateful for them fighting our corner in Europe. In actual fact, until they fight for a referendum for us, I would like to see every single one of them arrested for fraud.
They can then spent months of their life and all their savings proving the Tax Man wrong. After all, this is what happens to law abiding citizens who really are honest.
Would they own up and have a conscience, like our MPs on the mainland and their expenses.
Yeah Right!!!
"The ΒιΆΉΤΌΕΔ has already published an article "US plans to 'fight the net' revealed" (27 January 2006) on CIA involvement with the internet -so one can wonder how much US military funding has gone into "social engineering" our current use of technology."
I hate to say it but had it not been for US military funding you'd have no computer to write what you did on, and without ARPA (then DARPA) you couldn't have promulgated it, because there'd be neither Internet, nor telecommunication satellites.
Reply to Tony Robinson (no. 2):
"My unhumble suggestion: A new party hopefully supported by some rich people[...] Programme: Withdrawal from the "EU"."
Sorry Tony, this is never going to happen, the UK has always been a successful trading nation and retreating into a little shell off the coast of the world's largest trading bloc just to please a group of little-britainers is nonsense. As younger generations replace the older UKIP voters, the support base will be reduced to the BNP and other such extremists/fantastists.
the eu one big joke
I am very surprised...that anyone would be surprised to know that the EU is corrupt through and through. It's entire existance is nothing but a pile of lies. It was created with the the goal of a single European superstate under the seemingly innocent subterfuge of a trade pact. It's been one lie after another. Maastrict had a growth and stability pact which proscribed severe penalties to violators. Who violated it? None other than France and Germany who were the ones who insisted on it but never paid one Euro in fines. The EU's accounts haven't been certified by accountants in over a decade. Treaty after treaty turns out to be a tissue of lies. Kyoto is a prime example. What has the EU accomplished towards its modest goal of an 8% reduction of 1990 level of CO2 emissions? Nothing. And what about that "Constitution" so convoluted and long nobody read it let alone understood it? Not daunted by the unexpected rejections in France and Holland on a public vote, the EU's hubris extended to just jamming it down everyone's throat as a treaty. Even the British rubber stamp Parliament may not get a chance to debate it and vote on it if Brown decides against that. So what's a little hanky panky with a hundred thouseand Euros each more or less when hundreds of billions are being shuffled around in secret behind closed doors by faceless bureaucrats and MPs every day? And what about the average European taxpayers who foot the bill for all this? Let them eat cake.
I strongly object to racist remarks on Italians. I don't deny that Italy has its fair share of criminals but so have other countries. The main difference here is linguistic: what in Italy is called βcorruptionβ in Sweden is called βlobbyingβ. Working often with people from many European countries I have seen how national stereotypes do not apply and there are plenty of Northern Europeans happily 'facilitating' friends and families as much or more than Southern Europeans. A good example of 'political lobbying' is Ireland and its disgraced PM. The ΒιΆΉΤΌΕΔ and other media however never report on this, they rather talk about the Irish entry in the Eurovision song contest. I blame journalists and their poor training for failing to inform readers properly and encourage unhealthy sentiments from the most impressionable and vulnerable.
The best way to deal with fraud in the "EU" is to leave the "EU". We are going to leave in the long run. It would be better it the short run - like this evening!
I strongly object to racist remarks on Italians. I don't deny that Italy has its fair share of criminals but so have other countries. The main difference here is linguistic: what in Italy is called βcorruptionβ in Sweden is called βlobbyingβ. Working often with people from many European countries I have seen how national stereotypes do not apply and there are plenty of Northern Europeans happily 'facilitating' friends and families as much or more than Southern Europeans. A good example of 'political lobbying' is Ireland and its disgraced PM. The ΒιΆΉΤΌΕΔ and other media however never report on this, they rather talk about the Irish entry in the Eurovision song contest. I blame journalists and their poor training for failing to inform readers properly and encourage unhealthy sentiments from the most impressionable and vulnerable.
EUROPEAN FRAUD OFFICE. IS THIS A JOKE.
I have never heard of it. Furthermore I cannot remember any case of fraud being brought against any European politician or country.
All reccomendations for recovery of funds by the European Auditors have always ended in the Commissioners rubbish bin.
Does anyone have any idea how to control this blood sucking monster
I congratulate Chris Davies MEP for what he has done. But is he not in the wrong party? After all, the LibDems want to transfer even more power to the fraud-ridden EU.
As a former assistant I had a friend who had the misfortune to be employed by an MEP who saw the employee funds as little more than a second salary. He would pay his office staff peanuts and his wife, who was not truly employeed by him, a handsome wage. The southern state MEP has since left the Parliament but I am sure he's not the only example.
That being said, the majority of MEPs act in good faith. The problem appears to be related more to the difficulties of running what is an effect a small office of 4 or 5 staff and complying with the multiple rules in much the same way as a small company would face. With that in mind, taking the control over the expenses away from the MEPs and into a separate department in the EP sounds like a good idea.
As for why the MEPs don't want to publish their expenditures, it is probbaly to hide how little they pay their staff ;-)