Irregularities prevention - detection - mitigation

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Irregularitiesprevention - detection -
mitigation

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

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Overview

• Main principles
• FMOs 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 to the role
  of the Focal Points

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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.

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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 with the
  Focal Points
• Investigation initiated by the FMO in close
  co-operation with the donors and the Focal Points
  

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Review of irregularities reports

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

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Individual complaints

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

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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

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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

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• Questions?
• Hjortur Bragi Sverrisson
• hbs_at_efta.int
• fmo_at_efta.int
• www.eeagrants.org