New EU accounts row erupts

Accounting reforms should be in place by 2005

The senior accountant at the European Commission, who recently warned that EU accounting left its $60bn (£20bn) budget open to fraud, has been suspended.

Marta Andreason was first moved sideways within the Commission after she spoke out about the state of the Commission's accounting methods, saying it was impossible to keep track of spending.

She has now lost her job altogether after saying she was being asked to sign-off accounting reforms rather than proposing better ones.

Her boss, EU Commissioner Neil Kinnock - who has vowed to root out fraud and mismanagement - said her suspension was justified given her allegations.

No response

Ms Andreason alleges that the Commission's accounting has gaps that include a lack of double-entry book-keeping and unqualified personnel.

"I proposed reforms to the accounting system, but I was not allowed to implement them and nobody responded to me," Ms Andreason told BBC Radio 4's Today programme.

Mr Kinnock said the allegations aired by Ms Andreason were already known problems and that the Commission was taking disciplinary action against her for breaching staff rules.

"Instead of designing and developing further reforms, Ms Andreason made a list of complaints and didn't pursue the action leading to reform," he said.

2005 deadline

Ms Andreason has now said she will testify before the budget committee of the European Parliament, which oversees the Commission's execution of its budget functions.

The entire European Commission - the executive body of the European Union - resigned in March 1999 after a damning report exposed fraud, corruption and mismanagement at senior levels.

Mr Kinnock has promised that full reforms will be implemented by 2005.