Austria audit body demands stronger powers over party funding

VIENNA (Reuters) - Austria's court of auditors demanded tougher powers to police political parties' finances after the government collapsed in a scandal in which the former vice chancellor discussed ways to work around funding rules.

The court of auditors, which audits public bodies, currently has the right to formally review parties' financial reports but not to verify the statements. Small opposition parties have long criticised the system, complaining about lax reporting rules, loopholes which allow the secret funnelling of money and weak penalties.