site.btaFinancial Effect of Corrections Imposed under Operational Programmes Is Lv 166 Mln - Report

ESD 14:40:30 02-09-2014
DS1440ES.110
110 ECONOMY - OPERATIONAL PROGRAMMES - FINANCIAL RISKS

Financial Effect of Corrections Imposed
under Operational Programmes
Is Lv 166 Mln - Report


Sofia, September 2 (BTA) - The financial effect of the
corrections imposed on operational programmes under the EU
Structural and Cohesion Fund at December 31, 2013, stands at 166
million leva or 1.9 per cent of the paid grants, a report of
KPMG shows. The reports was presented Tuesday by Alexander Hinov
at a round table titled "Financial risks at European funds
management - the First 7".

Over three-fourths of all corrections were imposed under the
Environment and Regional Development operational programmes -
91.7 million leva for OP Environment and 36.3 million leva for
OP Regional Development.

The high share of financial corrections shows the need for
measures to provide capacity building of the relevant managing
authorities and the main groups of eligible beneficiaries, the
experts noted.

Seventy-four per cent of these financial correction are in the
system of public procurement and nearly three-fourths have been
established by the managing authorities. The frequency of
financial corrections is highest in OP Environment and OP
Regional Development where financial corrections have been
imposed on one in every two grant agreements.

For all operational programmes with the exception of OP
Environment most of the financial corrections have been imposed
because of registered irregularities after grant payments.

It is obvious from the financial correction that there is
insufficient capacity of the central administration, of the
municipalities, regions and other beneficiaries, Deputy Prime
Minister Iliana Tsanova said. The measures which can be
undertaken to limit financial corrections related to public
procurement and streamlining the procedure were among the
subjects to be discussed later, at a part of the round table
closed to journalists.

Finance Minister Roumen Porozhanov, Transport Minister Nikolina
Angelkova and Sofia Mayor Yordanka Fandakova also took part in
the discussion./VI/BR