Irregularities

prevention - detection - mitigation

The role of the Financial Mechanism Office Hjortur Bragi Sverrisson Head of Legal Affairs Financial Mechanism Office 12 November 2008

Overview

• Main principles • FMO’s fulfillment of its obligation to detect, prevent and investigate : – Review of irregularities reports and react when appropriate – Receive and process individual complaints – React to information from monitoring or audit reports or other sources • The role of the FMO is supplementary of the Focal Points to the role

Main principles

(from the good governance policy) • good governance is fundamental to the economic and social development process of all countries, and hence is inherently linked to the objectives of the financial mechanisms • donor states are committed to upholding the principles of good governance in the implementation of the financial mechanisms.

• of the elements that threaten good governance, corruption is seen by the donor states as among the most destructive • donor states adhere to a strict zero-tolerance policy on corruption.

Detect, prevent and investigate

• Starts with sound selection and appraisal procedures • Supplemented by: – monitoring – audits – review of payment claims • Close co-operation and open dialogue Focal Points with the • Investigation initiated by the FMO in close co operation with the donors and the Focal Points

Review of irregularities reports

• Reporting responsibility with the Focal Points • Broad definition of irregularities • Quarterly reporting • 4,000 euro limit • Immediate reporting irregularities in case of serious • Decision to suspend payments or demand reimbursement taken by donors

Individual complaints

• Nature – Procurement process – Selection process – Legal disputes • Reaction – Consultation with the Focal Points – Independent investigation • Decisions – Taken by the donors

Monitoring and audits

• Monitoring – Projects and funds over 2.5 million euro, – 5% of other projects – Any other projects which might appear to be problematic • Audits – EFTA Board of Auditors – Office of the Auditor General of Norway – Audits by the FMC • Auditing and monitoring activities by the donors is coordinated with the Focal Points

Role of the Focal Point

• Play the main role of the preventing, detecting, investigating, mitigating the effects of irregularities • Close co-operation with the FMO when irregularities occur

Hjortur Bragi Sverrisson [email protected]

[email protected]

www.eeagrants.org

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