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10.—(1) Where any person, with a view to obtaining the payment of aid under these Regulations to himself or any other person, makes any statement or furnishes any information which is false or misleading in a material respect, the Secretary of State may withhold the whole or any part of any aid payable to that person or to such other person, and may recover the whole or any part of any aid already paid to that person or to such other person.
(2) Where a beneficiary—
(a)fails to comply with any of the extensification obligations; or
(b)fails without reasonable excuse to permit entry or inspection by an authorised person or to render all reasonable assistance to such authorised person as required by regulation 9,
the Secretary of State may withhold the whole or any part of any aid payable to that beneficiary, and may recover the whole or any part of any aid already paid to him.
(3) In addition to withholding or recovering aid under paragraph (1) or (2), the Secretary of State may treat as terminated the undertakings given by the beneficiary under these Regulations.
(4) The Secretary of State may treat the undertakings given by any beneficiary as terminated where the beneficiary receives or is entitled to receive any assistance out of moneys provided by Parliament or the European Community and the Secretary of State is satisfied that such assistance would duplicate the payment of aid under these Regulations.
(5) Nothing in paragraph (4) entitles the Secretary of State to withhold any aid payable or to recover any aid already paid in respect of a period before the Secretary of State acted under that paragraph.
(6) Before withholding or recovering any aid under paragraph (2)(a) or treating an undertaking as terminated under paragraph (4), the Secretary of State shall—
(a)give to the beneficiary a written explanation of the reasons for the proposed withholding or recovery of aid;
(b)afford the beneficiary an opportunity of appearing before and being heard by a person appointed for that purpose by the Secretary of State; and
(c)consider the report by the person so appointed and supply a copy of the report to the beneficiary.
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