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PART IU.K.COMMON PROVISIONS

TITLE IIU.K.COMMON RULES FOR IMPLEMENTATION

CHAPTER IVU.K.Financial management

Section 2 U.K. Rules for decentralised management

Article 46U.K.Suspension of payments

1.All or part of the payments may be suspended by the Commission where:

(a)there is a serious deficiency in the management and control system of the programme which affects the reliability of the procedure for certification of payments and for which corrective measures have not been taken; or

(b)expenditure in a certified statement of expenditure is linked to a serious irregularity which has not been corrected; or

(c)clarifications are needed regarding the information contained in the declaration of expenditure.

2.The beneficiary country shall be given the opportunity to present its observations within a period of two months before the Commission decides on a suspension in accordance with paragraph 1.

3.The Commission shall end the suspension when the beneficiary country has taken the necessary measures to remedy the deficiency, irregularity or lack of clarity referred to in paragraph 1.

If those measures have not been taken by the beneficiary country, the Commission may decide to cancel all or part of the Community contribution to the programme in accordance with Article 51.