CHAPTER 2

CONFERRAL OF MANAGEMENT

Conferral of management of aid
Article 3
1
The Commission shall verify compliance with the conditions of Article 12(2) of Regulation (EC) No 1266/1999, hereinafter referred to as ‘the conditions’, and the provisions of Articles 4 to 6 of and the Annex to this Regulation prior to deciding on conferral of management of aid to the applicant countries.
For the establishment of compliance with the conditions and with the provisions mentioned in the first subparagraph, the Commission shall:
- examine the national fund procedures and structures related to the implementation of the Sapard programme and Sapard agency procedures and structures and, where appropriate, procedures and structures of other bodies to which tasks may have been delegated in accordance with Articles 4(4), 5(3) and 6(2),
- carry out verifications on-the-spot.
2
The decision to confer management on an agency may be made on a provisional basis, provided there is compliance with the conditions and with the functions and criteria of the Annex to this Regulation and the provisions of Articles 4 to 6.
3
The Commission shall monitor continued compliance with the conditions and provisions of this Regulation including the Annex. If, at any stage, they are found to be no longer fulfilled, the Commission shall immediately revoke the decision and shall:
- cease to undertake any new financial obligations on the part of the Community,
- cease to transfer monies to the applicant country and
- if appropriate, make financial corrections against the applicant country.