SECTION 4CONSEQUENCES OF THE WARNINGS

Article 19General rules governing the consequences1.

The authorising officer responsible shall ask any relevant information from the warning contact person to be able to decide on the consequences set out in this Section.

Where on the basis of information provided by OLAF the authorising officer responsible requests the registration of a verification warning under Article 11, the authorising officer responsible shall follow the procedure set out in Article 14 or 15 of this Decision and decide on the consequences in close cooperation with OLAF in line with Regulation (EU, Euratom) No 883/2013.

When deciding on the consequences, the authorising officer responsible shall take into account the following criteria for all warnings:

(a)

the risks to the Union's financial interests and image;

(b)

the amount and duration of the legal commitment;

(c)

the urgency in the implementation of the legal commitment;

(d)

the nature of the facts;

(e)

the seriousness of the facts; and

(f)

the possible consequences on the implementation of the legal commitment.

For exclusion warnings, the authorising officer responsible shall also take into account the nature and seriousness of the grounds for exclusion and the necessity of the continuity of the service.

The authorising officer responsible shall, in any case, justify his/her decision on the consequences in writing.

Article 20Consequence of verifications warnings1.

In case of procurement or grant award procedures or contests for prizes, verification referred may be the following:

(a)

the authorising officer responsible may request additional supporting documents as set out in the procurement or grant award procedure or contest for prizes;

(b)

for grant award procedure, an analysis of the risk related to pre-financing.

In case of a legal commitment, verification referred may be the following:

(a)

verification that the action is compliant with the legal commitment, including the respect of deadlines and content of deliverables;

(b)

for existing grants, verification of the eligibility of costs before payment or the performance of an audit or of on the spot checks.

Article 21Right to be heard after a verification warning

The procedure set out under Article 15 of this Decision and the right to be heard set out under Article 16 of this Decision shall also apply when an authorising officer responsible following a verification warning envisages taking any act that might adversely affect the rights of the person concerned.

Article 22Consequences of exclusion warnings on procedures and legal commitments1.

In case of procurement or grant award procedures or contests for prizes, the authorising officer responsible shall exclude a person subject to an exclusion warning from participating in procurement or grant award procedures, unless the conditions set out in Article 106(2) of Regulation (EU, Euratom) No 966/2012 are fulfilled, when the person is in a monopoly situation.

In case of existing legal commitments, the authorising officer responsible shall decide on the consequences, including any of the following:

(a)

to proceed with the implementation of the contract or grant and make any appropriate verifications;

(b)

to suspend the time limit for payments in accordance with Article 92(2) of Regulation (EU, Euratom) No 966/2012;

(c)

to suspend payments in accordance with Article 208 of Delegated Regulation (EU) No 1268/2012;

(d)

to suspend implementation of the contract or grant in accordance with Article 116 and Article 135(5) of Regulation (EU, Euratom) No 966/2012;

(e)

to terminate the legal commitment if the provision of the legal commitment foresees the termination on the basis of the information for which the warning was registered.

If the person is a subcontractor, the authorising officer responsible shall require the tenderer or candidate or the contractor to substitute the subcontractor.

Article 23Consequences of exclusion warnings on budget transactions1.

In case of an exclusion warning, where appropriate, the authorising officer responsible shall confirm in the accounting system that the payment should be made despite the existence of the warning.

Where an exclusion warning is registered, no individual budgetary commitment, no registration of an individual legal commitment in the budgetary accounts based on a global commitment and no conclusion of a legal commitment based on a provisional commitment shall be made, except where the person is in a monopoly situation under the conditions laid down in Article 106(2) of Regulation (EU, Euratom) No 966/2012.