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European Commission has renewed payments of EU assistance to Lithuania

Date

2012 05 11

Rating
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Vilnius, May 11. The European Commission announced that it has renewed the payments of EU Assistance to Lithuania from the European Regional Development Fund and the Cohesion Fund.

The payments in total value of EUR163 million were temporarily interrupted in February 2012, after the conclusions of the National Audit Office on potential irregularities in implemented projects. The Ministry of Finance provided the European Commission with the requested information in the middle of March and in the beginning of April supplemented it with additional information on remedial action taken for elimination of irregularities identified during the audit. A repeated verification of all projects, where potential irregularities were identified, took place. After verifications the error rate decreased almost three times - from 1.93% to 0.683% of total declared expenditure for 2010, which in 2010 amounted to almost LTL 3 billion.

After implementation of the recommendations, about LTL4.6 million of funds ineligible to be declared to the Commission will be refunded from beneficiaries. The National Audit Office has provided the findings on LTL 5.6 million, which might have been related to project implementation procedures unduly performed by beneficiaries. The refunded amounts will be used for financing other projects.

Most of potential irregularities stated by the National Audit Office were related to public procurements carried out by beneficiaries. Unduly selected procurement methods, too high qualification requirements, undue proposal submission deadlines set during procurement, no indication of websites, where the one could get familiar with all procurement documents or too detailed requirements for procurement object, could be presented as examples.

Public Relations Division
Phone: (+370 5) 239 00 08
www.finmin.lt