Client success! Waiver of financial correction of over PLN 2 million in an EU project

The auditors concluded that in the course of contract implementation, the contract concluded between the ordering Beneficiary and the contractor was modified in an unauthorised manner through an unauthorised extension of the contract implementation deadline, which constituted a ‘significant amendment to the provisions of the concluded contract in relation to the content of the tender on the basis of which the contractor was selected’.

As a result, the post-control information addressed to the Beneficiary indicated that in the implemented project there were irregularities in the amount of over PLN 2 million, which should be corrected.

The Law Firm’s team supported the Client in the preparation of objections to the post-audit information, and the Authority, having familiarised itself with the Beneficiary’s position, accepted the explanations provided in full.

Consequently, it waived the imposition of a financial correction in the amount of over PLN 2 million, confirming that no irregularities occurred within the framework of the awarded contract.

Thus, the Beneficiary’s objections to the post-control information were accepted in full, and the project could be completed and settled in accordance with the Beneficiary

‘s

original assumptions.

The law firm’s client was supported by legal adviser Magdalena Porzeżyńska, PhD, and attorney Małgorzata Woźniak:

The commented case is an example of the fact that when implementing projects with EU support, one must take into account the dynamics of business processes and the possibility of the occurrence of unforeseen events, such as force majeure

.

However, this does not automatically mean that the funds must be returned.

It is important, in the case of such a situation, to enter into a dialogue with the granting authority, demonstrating due diligence and the impossibility of foreseeing force majeure events.

I am satisfied with the final position of the authority, as in this case, the Client made every effort to explain in detail and prove that there were no irregularities as part of the project, which would result in the necessity to return the funds, comments advocate Małgorzata Woźniak.

The Law Firm’s team supported the Beneficiary from the very beginning of the project.

The support included, among other things, leading to the signing of a grant agreement as a result of obtaining a legally binding decision of an administrative court on the Beneficiary’s SME status, which was initially disputed by the granting institution.

As a result of the extensive legal arguments presented by the Law Firm’s team as to maintaining the SME status of the enterprise regardless of capital changes occurring after selection for co-financing, which were fully accepted by the administrative courts deciding the case, the Law Firm’s client signed the co-financing agreement and implemented the project.