Română | Sitemap | Contact

Reporting irregularities

Untitled Document

IV. Legal basis and requirements for irregularity reporting
The reporting of irregularities occurred in the obtainment and usage of EU funds is regulated by GEO no. 66/2011 regarding the prevention, ascertaining and sanctioning of irregularities occurred in the obtainment and usage of EU funds and/or national public funds afferent to these and specific for each type of financing instrument, by:

IV. 1. Financing instruments for the pre-accession period
IV.1 a) Sapard
-point 7, Section F of annex 1 to the Multi-annual Financing Agreement Sapard, with the subsequent amendments and completions;

In accordance with sub-point 7.3 section F of annex 1 to the Multi-annual Financing Agreement Sapard, with the subsequent amendments and completions, during the two months following the end of each quarter, Romania shall report to the Commission any irregularities which have been the subject of initial administrative or judicial investigations.

At the same time, in accordance with the sub-point 7.5 of each section, during the two months following the end of each quarter, Romania shall inform the Commission, with reference back to any previous report made, of the procedures instituted following all irregularities previously notified and of important changes resulting therefrom.

Should there be no irregularities to report in the reference period, Romania shall inform the Commission of this fact within the same time limit.

Where the irregularities relate to sums of less than 4 000 EUR charged to the Community budget, Romania shall not inform the Commission, unless the latter expressly requests it.
At the same time Romania shall forthwith report to the Commission any irregularities discovered or supposed to have occurred, where it is feared that
- they may very quickly have repercussions outside its territory,
and/or

  1. they show that a new mal-practice has been employed.

Such a report will have to be transmitted, if the case, simultaneously to other candidate countries or relevant member states.

IV. 1.b) PHARE

- Annex C to the financing memoranda PHARE
- Regulation (EC) no. 1681/1994 of 11 July 1994 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the structural policies, as modified by Regulation (EC) no. 2035/2005;

In accordance with art. 3 from Regulation (EC) no. 1681/1994, with the subsequent amendments and completions, during the two months following the end of each quarter, Romania shall report to the Commission any irregularities which have been the subject of initial administrative or judicial investigations.

According to the provisions of art. (2) of the same article, the following cases need not be reported to the Commission:
a) cases where the irregularity consists solely of the failure to partially or totally execute an operation co-financed by the Community budget owing to the bankruptcy of the final beneficiary and/or the final recipient. However, irregularities preceding a bankruptcy and cases of suspected fraud must be reported,
b) cases brought to the attention of the administrative authority by the final beneficiary or the final recipient voluntarily or before detection by the relevant authority, whether before or after the granting of the public contribution,
c) cases where the administrative authority finds a mistake regarding the eligibility of the financed project and corrects the mistake prior to payment of the public contribution

At the same time, in conformity with article 5 from Regulation (EC) no. 1681/1994, with the subsequent amendments and completions, during the two months following the end of each quarter, Romania shall inform the Commission, with reference back to any previous report made, of the procedures instituted following all irregularities previously notified and of important changes resulting therefrom.

Should there be no irregularities to report in the reference period, Romania shall inform the Commission of this fact within the same time limit.

Where the irregularities relate to sums of less than 10 000 EUR charged to the Community budget, Romania shall not inform the Commission, unless the latter expressly requests it.
Romania shall forthwith report to the Commission and, where necessary, to the other Member States concerned, any irregularities discovered or supposed to have occurred, where it is feared that:
- they may very quickly have repercussions outside its territory,
and/or

  1. they show that a new mal-practice has been employed.

IV. 1. c) ISPA – annex III.5 to the ISPA financing memoranda

  1. Regulation (EC) no.1831/1994 concerning irregularities and the recovery of sums

wrongly paid in connection with the financing of the Cohesion Fund, as modified by Regulation (EC) no. 2168/2005

In accordance with art. 3 from Regulation (EC) no. 1681/1994, with the subsequent amendments and completions, during the two months following the end of each quarter, Romania shall report to the Commission any irregularities which have been the subject of initial administrative or judicial investigations.

According to the provisions of art. (2) of the same article, the following cases need not be reported to the Commission:
a) cases where the irregularity consists solely of the failure to partially or totally execute an operation co-financed by the Community budget owing to the bankruptcy of the final beneficiary and/or the final recipient. However, irregularities preceding a bankruptcy and cases of suspected fraud must be reported,
b) cases brought to the attention of the administrative authority by the final beneficiary or the final recipient voluntarily or before detection by the relevant authority, whether before or after the granting of the public contribution,
c) cases where the administrative authority finds a mistake regarding the eligibility of the financed project and corrects the mistake prior to payment of the public contribution

At the same time, in conformity with article 5 from Regulation (EC) no. 1831/1994, with the subsequent amendments and completions, during the two months following the end of each quarter, Romania shall inform the Commission, with reference back to any previous report made, of the procedures instituted following all irregularities previously notified and of important changes resulting therefrom.

Should there be no irregularities to report in the reference period, Romania shall inform the Commission of this fact within the same time limit.

Where the irregularities relate to sums of less than 10 000 EUR charged to the Community budget, Romania shall not inform the Commission, unless the latter expressly requests it.
Romania shall forthwith report to the Commission and, where necessary, to the other Member States concerned, any irregularities discovered or supposed to have occurred, where it is feared that
- they may very quickly have repercussions outside its territory,
and/or

  1. they show that a new mal-practice has been employed.

IV.1. d) TF

- art. 15 and 16 from the Agreement Memorandum between Romania and European Commission for the putting into practice of the Transition facility, approved by Order 1849/2007 of the Minister of Economy and Finances

- part IV Irregularities from Regulation (EC) no. 1828/2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No. 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund, as modified by Regulation (EC) no. 846/2009 and Regulation (EU) no. 832/2010.

As the legislation applicable in the case of TF is the same as to structural instruments, the reporting requirements are those described at point IV.2 Structural instruments.

IV.1.e) IPA

- art. 19 ‘Antifraud measures’ and art. 138 ‘Financial corrections and irregularities’ par. 2 from Regulation (EC) no. 718/2007 implementing Council Regulation (EC) No 1085/2006 establishing an instrument for pre-accession assistance (IPA), as modified by Regulation (EC) no. 80/2010;

- part IV ‘Irregularities’ from Regulation (EC) no. 1828/2006 setting out rules for the implementation of Council Regulation (EC) no 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No. 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund, as modified by Regulation (EC) no. 846/2009 and Regulation (EU) no. 832/2010.

As the legislation applicable in the case of IPA is the same as to structural instruments, the reporting requirements are those described at point IV.2 Structural instruments.

IV. 2 Structural instruments

- part IV ‘Irregularities’ from Regulation (EC) no. 1828/2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No. 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund, as modified by Regulation (EC) no. 846/2009 and Regulation (EU) no. 832/2010.

In accordance with art. 28 ‘Initial reporting – derogations’, par. 1 from  Regulation (EC) no. 1828/2006, with the subsequent amendments and completions, during the two months following the end of each quarter, Romania shall report to the Commission any irregularities which have been the subject of initial administrative or judicial investigations.

According to the provisions of art. (2) of the same article, the following cases need not be reported to the Commission:
a) cases where the irregularity consists solely in the failure to execute, in whole or in part, an operation included in the co-financed operational programme owing to the bankruptcy of the beneficiary;

b) cases brought to the attention of the managing authority or certifying authority by the beneficiary voluntarily and before detection by either of them, whether before or after the payment of the public contribution,

c) cases which are detected and corrected by the managing authority or certifying authority before any payment to the beneficiary of the public contribution and before inclusion of the expenditure concerned in a statement of expenditure submitted to the Commission.
However, irregularities preceding a bankruptcy and cases of suspected fraud must be reported.

At the same time, in accordance with art. 30 ‘Reporting of follow-up’, par. (1) from Regulation (EC) no. 1828/2006, with the subsequent amendments and completions, within two months following the end of each quarter, Romania shall inform the Commission, with reference to any previous reporting, detailed information regarding the opening, closing or abandon of any procedure to impose an administrative or penal sanction related to the previously reported irregularities as well as to the results of such a procedure.

As regards the irregularities for which sanctions were imposed, Romania must indicate also:

  1. if the sanctions are administrative or penal;
  2. if the sanctions are a consequence of non-observing the community or national legislation;
  3. the provisions on which the sanctions are based;
  4. if the fraud was ascertained.

Where no irregularity has been the subject of an administrative or judicial initial investigations in the quarter afferent to the reporting, this will be consequently notified by each responsible entity, following the same reporting flow, within the same time limits set out for quarterly reports.

Where the irregularities relate to sums of less than 10 000 EUR charged to the Community budget, Romania shall not inform the Commission, unless the latter expressly requests it.
Romania shall immediately report to the Commission and, where necessary, to the other Member States concerned, any irregularities discovered or supposed to have occurred, where it is feared that they may very quickly have repercussions outside its territory or they show that a new malpractice has been employed.

IV. 3. European Fisheries Fund

  1. chapter VIII ‘Irregularities’ from Regulation (EC) no. 498/2007 laying down detailed rules for the implementation of Council Regulation (EC) No 1198/2006 on the European Fisheries Fund, as modified by Regulation (EU) no. 1249/2010 of the Commission.

 

In accordance with art. 55 ‘Initial reporting – derogations’, par. 1 from Regulation (EC) no. 498/2007, with the subsequent amendments and completions, during the two months following the end of each quarter, Romania shall report to the Commission any irregularities which have been the subject of initial administrative or judicial investigations.

According to the provisions of art. (2) of the same article, the following cases need not be reported to the Commission:

a) cases where the irregularity consists solely in the failure to execute, in whole or in part, an operation included in the co-financed operational programme owing to the bankruptcy of the beneficiary;

b) cases brought to the attention of the managing authority or certifying authority by the beneficiary voluntarily and before detection by either of them, whether before or after the payment of the public contribution,

c) cases which are detected and corrected by the managing authority or certifying authority before any payment to the beneficiary of the public contribution and before inclusion of the expenditure concerned in a statement of expenditure submitted to the Commission.

However, irregularities preceding a bankruptcy and cases of suspected fraud must be reported.

At the same time, in accordance with art. 57 ‘Reporting of follow-up’, par. (1) from Regulation (EC) no. 498/2007, with the subsequent amendments and completions, within two months following the end of each quarter, Romania shall inform the Commission, with reference to any previous reporting, detailed information regarding the opening, closing or abandon of any procedure to impose an administrative or penal sanction related to the previously reported irregularities as well as to the results of such a procedure.

As regards the irregularities for which sanctions were imposed, Romania must indicate also:

  1. if the sanctions are administrative or penal;
  2. if the sanctions are a consequence of non-observing the community or national legislation;
  3. the provisions on which the sanctions are based;
  4. if the fraud was ascertained.

Where no irregularity has been the subject of an administrative or judicial initial investigations in the quarter afferent to the reporting, this will be consequently notified by each responsible entity, following the same reporting flow, within the same time limits set out for quarterly reports.

Where the irregularities relate to sums of less than 10 000 EUR charged to the Community budget, Romania shall not inform the Commission, unless the latter expressly requests it.

Romania shall immediately report to the Commission and, where necessary, to the other Member States concerned, any irregularities discovered or supposed to have occurred, where it is feared that they may very quickly have repercussions outside its territory or they show that a new malpractice has been employed.

IV. 4 Financing instruments for the common agricultural policy

- Regulation (EC) no. 1848/2006 concerning irregularities and the recovery of sums wrongly paid in connection with the financing of the common agricultural policy and the organisation of an information system in this field and repealing Council Regulation (EEC) No 595/91

In accordance with art. 3 Quarterly reporting from Regulation (EC) no. 1848/2006, ‘at the latest within two months following the end of each quarter, Romania shall report to the Commission all the irregularities which have been the subject of a primary administrative or judicial finding’.

By way of derogation from paragraph 1, the following cases need not be reported:
— cases where the irregularity consists solely of the failure to partially or totally execute an operation co-financed by the EAFRD or subsidised under the EAGF owing to the bankruptcy of the final beneficiary or the final recipient; however, irregularities preceding a bankruptcy and cases of suspected fraud must be reported,

— cases brought to the attention of the administrative authority by the final beneficiary or the final recipient voluntarily and before detection by the relevant authority, whether before or after the payment of the public contribution,

— cases where the administrative authority finds a mistake regarding the eligibility of the financed expenditure and corrects the mistake prior to payment of the public contribution.

Romania shall inform the Commission as soon as possible, but at the latest within two months following the end of each quarter, with reference to any previous report made before, on details concerning the initiation or abandonment of any procedures for imposing administrative or criminal sanctions related to the notified irregularities as well as of the main results of such procedures. This information shall also indicate the character of the sanctions applied and/or whether the sanctions in question relate to the application of Community and/or national legislation, including a reference to the Community and/or national rules in which the sanctions are laid down.

Where no irregularity has been the subject of an administrative or judicial initial investigations in the quarter afferent to the reporting, this will be consequently notified by each responsible entity, following the same reporting flow, within the same time limits set out for quarterly reports.

Where the irregularities relate to sums of less than 10 000 EUR charged to the Community budget, Romania shall not inform the Commission, unless the latter expressly requests it.

For applying this threshold:
— Member States which do not form part of the euro zone shall apply the same exchange rate as that which they used to make payments to beneficiaries or receive revenue in accordance with Commission Regulation (EC) No 2808/98 (11) and the sectoral agricultural legislation,

— in cases other than those referred to in sub-paragraph 1, in particular for operations for which an operative event has not been laid down by the sectoral agricultural legislation, the applicable exchange rate shall be the last-but-one exchange rate established by the European Central Bank before the month in respect of which the expenditure or assigned revenue has been declared to the Commission in accordance with Commission Regulation (EC) No 883/2006 (12).

Romania shall forthwith report any irregularities where it is feared that they may very quickly have repercussions outside its territory or they show that a new malpractice has been employed.





European officials talking about DLAF's activity
Giovanni Kessler, Director-General of OLAF, july 2011:
"DLAF este un bun exemplu de cooperare între noi şi autoritătile nationale.."

Continuare


European affairs

EU legislation
Government of Romania - Department for fight against fraud - DLAF
About Us | The Management | Legislation | EU Funds Investigation | Coordinating national institutions | Cooperating with OLAF

© Department for fight against fraud