EC safeguard clause-Audit report on Romania’s payment agencies to be released on December 11

The Agency for Payments and Intervention in Agriculture and the Payment Agency for Rural Development and Fishing are both subordinated to the Ministry of Agriculture. The two benefited from a temporary accrediting on December 15, 2006.

Both agencies are in charge with managing EU funds for the areas they focus on. The move comes after the European Commission today settled to prolong until December 16 the accrediting deadline.

Romania has until mid-December to root out any issues concerning its agency for payments in agriculture or it may face trigger of the safeguard clause; EC will decide four days after the deadline expires whether to cut farm aid or not, an EC release shows.

EC today hailed the progress Romania made in implementing the payment system in agriculture yet urged the country to further improve the IT system. In the event it fails to do so, Romania will see 25 percent of its EU agriculture subsidies under lock and key. 

Romania made it clear no payment will be made until all check ups are be completed and said the new payments software is up-and-running, after being previously approved by an independent auditor.

Yet, the auditor found major flaws in the IT system for payments and if in 37days the country overhauls these deficiencies, the procedure concerning the safeguard clause will be halted.

EC discovered Romania lacks a proper computer system to track farm payments, after performing audits in June and September. EU also fears ineligible farmers or institutions could siphon off the funds.

If all goes well, Romania could benefit from a total 4.3 billion euros handouts in the form of farming subsidies, from 2008 to 2013.

Source: NewsIn