Defra accounts qualified over RPA fines

Penalties totalling £175m were cited as reason for the qualification

The accounts of the Department for Environment, Food and Rural Affairs (Defra) and its Rural Payments Agency have been qualified due to heavy fines imposed by the European Commission. The fines are the result of failings with the computer system used to make subsidy payments to farmers.

Controller and auditor general Amyas Morse explained that the accounts have been qualified because of £175m fines for delayed and mistaken payments to farmers under the Single Payments Scheme between 2007 and 2009. A further penalty of £84m is expected for 2010.

Defra claimed that this year's performance has been better.

However, Morse told MPs that there is still a "significant loss" to taxpayers, and demanded that a new leadership team be appointed to the agency to address the issues that have led to the qualifications.