Schreyer promises swift turnabout for fixing ‘flawed’ accounts system

Date: 07/11/02

By David Cronin

THE European Commission will finalise a plan of action for revamping its controversial bookkeeping system by the end of this year, budget chief Michaele Schreyer pledged this week (5 November).

The German commissioner was speaking at the launch of the annual report from the EU Court of Auditors, which delivered a stinging critique over the lack of safeguards for managing taxpayers' money in the Union.

According to the report, the Commission has shown little resolve in remedying flaws identified in Sincom, its computer-based accounting system.

Weaknesses include the absence of double-entry bookkeeping and failure to keep a complete record of EU assets.

Sincom has been under the spotlight since May, when Marta Andreasen was suspended from her post as accounting officer to the EU executive after protesting at inaction in reforming the system.

'While in the past the Commission has recognised at least some of the deficiencies pointed out by the Court, it has not given sufficient priority or devoted sufficient reflection and appropriate resources to overcoming them within a reasonable timescale,' the report states.

In response, Schreyer said she regretted the delays in implementing accounting reforms. The forthcoming plan of action will aim to improve the situation considerably, she added.

After examining a wide variety of accounts, the report concluded that it could not give an assurance that most of the Union's €98 billion annual budget is being properly managed 'due to the incidence of errors found'.

Many of these shortcomings relate to the allocation of farm subsidies.

Juan Manuel Fabra Vallés, the Court's president, said at least 80% of the EU's accounts 'could be called into question'.

But he added: 'We hope that by the end of this year some things will change. We have to believe in the good faith of the Commission to improve things.'

The European Commission will finalise a plan of action for revamping its controversial bookkeeping system by the end of the year, Commissioner Michaele Schreyer pledged on 5 November 2002.