Davis broadly welcomed the proposals published this morning in a consultation document by Neil Kinnock, commission vice-president for reform, but said other measures could have been taken.
He said: ‘I am disappointed that there is no provision for making the European Fraud Prevention Office, known as OLAF, completely independent from the commission so that its effectiveness is maximised.
‘Only this week we have seen further allegations of mismanagement, including fraud, at the European Investment Bank, providing a timely reminder of weaknesses in the system.’
The PAC visited the Commission last year where it became concerned at the levels of waste, error and fraud.
Davis did however, support the idea of creating a new Internal Audit Service and the Audit Progress Board.
Neil Kinnock has described the reforms as radical. His report, a consultation document which will need the backing of the European Parliament and the Council, concluded the existing system if financial audit and control needed ‘overhauling’ and bringing up to date.
Kinnock moves to clean up financial management at the European Commission