Recovery
Where the award procedure or performance of the contract is vitiated by substantial errors or irregularities or by fraud attributable to the partner, the European Commission may refuse to make payments or may recover amounts already paid, in proportion to the seriousness of the errors, irregularities or fraud.
Suspension of payment by the EC
The European Commission may also suspend payments in cases where there are suspected or established errors, irregularities or fraud committed by the partner in the performance of another contract funded by the general budget of the EC or by budgets managed by it which are likely to affect the performance of the present contract.
Suspension shall take effect when the modification is sent by the EC.
Repayment by the beneficiary organisation
The beneficiary undertakes to repay any amounts paid in excess of the final amount due to the European Commission within 45 days of the issuing of the debit note, the latter being the letter by which the EC requests the amount owed by the Grant beneficiary.
Should the beneficiary fail to make repayment within this deadline, the EC may increase the amounts due by adding interest (see Article 18.2 of the General conditions for more details).
Amounts to be repaid to the EC may be offset against amounts of any kind due to the beneficiary. This shall not affect the Parties' right to agree on payment in instalments.
Bank charges incurred by the repayment of amounts due to the EC shall be borne entirely by the beneficiary.
Sources and useful links:
- General conditions, Article 15.5, 18