Fraud Haunts E.U. Anew

For years European citizens have stashed cash in secret Luxembourg bank accounts. Now it seems that members of the European Commission's statistical agency, Eurostat, have been doing the same thing. According to a Commission audit released last week, Eurostat officials have secreted away close to $1 billion of taxpayers' money. The Commission replaced longtime Eurostat director Yves Franchet, who'd held the job for more than 15 years. (Belgian Michel Vanden Abeele will take his place.)

The alleged scheme involved "irregular reserves" from inflated subcontracts Eurostat issued to consulting companies. The money was deposited in Luxembourg bank accounts, some...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!