Department’s powers13.
(1)
The powers conferred by regulations 11(1) and 12 are—
(a)
to withhold the whole or any part of the financial support payable to the beneficiary; and
(b)
to recover on demand the whole or any part of the financial support already paid to the beneficiary.
(2)
Where all the circumstances in which the powers conferred by regulation 11(1) and specified in paragraph (1) have become exercisable are such as were intended by the beneficiary or as to which the beneficiary was reckless, the Department may also require the beneficiary to pay to it an additional sum equal to no more than 10 per cent of the financial support paid or payable to him.
(3)
Where the Department takes any step specified in paragraph (1) it may also serve in writing on the beneficiary a notice suspending or terminating the approval.
(4)
Where, under paragraph (3), the Department treats the approval as terminated, it may by notice in writing served on the beneficiary prohibit the beneficiary from making an application for the approval of expenditure in connection with an operation for such period (not exceeding two years) from the date of the termination as may be specified in the notice.
(5)
Before taking any step specified in paragraph (1), (2), (3) or (4) the Department shall—
(a)
give the beneficiary a written explanation of the reasons for the step proposed to be taken;
(b)
afford the beneficiary an opportunity to make written representations within such time as the Department considers reasonable; and
(c)
consider any such representations.