He said that school inspectors had been told to challenge head teachers and governors to justify pay rises to teachers and to give a lower rating to schools that increase staff paywithout good reason.
Officials familiar with the investigation think that these accounts may originally have been set up to give Eurostat a way to pay for research quickly, without going through the commission's cumbersome procedures.
It was pouring gasoline on the fire for the Bush administration to give them the first payments without insisting on any changes in pay, any restrictions on the use of the funds or even any reporting requirements on where they money went.