Changes from plenary report to adopted text

RemovedLETTER OF THE COMMITTEE ON BUDGETARY CONTROL

RemovedMr David McAllister

RemovedChair

RemovedCommittee on Foreign Affairs

RemovedBRUSSELS

RemovedMr Johan Van Overtveldt

RemovedChair

RemovedCommittee on Budgets

RemovedBRUSSELS

RemovedSubject: Opinion on the Regulation establishing the Ukraine Facility (COM(2023)0338 – C9-0210/2023 – 2023/0200(COD))

RemovedDear Chairs,

RemovedUnder the procedure referred to above, the Committee on Budgetary Control has been asked to submit an opinion to the Committee on Foreign Affairs and to the Committee on Budgets. At its meeting of 18 July 2023, the committee decided to send the opinion in the form of a letter. It considered the matter at its meeting of 4 September 2023 and adopted the opinion at that meeting.

RemovedThe opinion consists of the following amendments, which, in accordance with the usual treatment of opinions under Rule 56, I kindly ask you to put to the vote during the vote on the report in your committees:

RemovedCONT 1

RemovedRecital 88

RemovedIn particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) should be in a position to carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. OLAF should be provided with sufficient administrative capacities to conduct these investigations.

RemovedCONT 2

RemovedRecital 89

RemovedIn accordance with Regulation (EU, Euratom) 2018/1046, the necessary rights and access should be granted to the Commission, OLAF, the European Court of Auditors and, where applicable, the European Public Prosecutor’s Office (EPPO) where relevant, including from third parties involved in the implementation of Union funds. Ukraine should also use the Early Detection and Exclusion System and report irregularities in relation to the use of the funds to the Commission.

RemovedCONT 3

RemovedRecital 90

RemovedThe reinforcement of internal control systems, the fight against corruption, the promotion of transparency, good administration, (and) efficient public financial management, and verification by an independent external auditor are important reform priorities for Ukraine and should be supported by the Facility.

RemovedCONT 4

RemovedRecital 91

RemovedThe Commission should ensure that the financial interests of the Union are effectively protected under the Facility. To this end, an independent Audit Board should be set up to provide the Commission with information on possible mismanagement of funds and guarantee that the correct level of assurance is obtained through an independent external audit. Such information should be made available to OLAF and where appropriate to the relevant Ukrainian authorities. The Commission, with the assistance of the Union delegation, should be entitled to perform checks on how Ukraine implements funds along the whole project life cycle. The Audit Board should ensure regular dialogue and cooperation with the European Court of Auditors.

RemovedCONT 5

RemovedArticle 9 - Paragraph 1

RemovedThe Commission shall conclude a framework agreement with Ukraine for the implementation of the Facility setting out specific arrangements for the management, control, supervision, monitoring, evaluation, reporting and audit of funds under the Facility, as well as to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. The framework agreement shall be complemented by financing agreements in accordance with Article 10 and loan agreements in accordance with Article 21, setting out specific provisions for the management and implementation of funding under the Facility.

RemovedCONT 6

RemovedArticle 9 - Paragraph 4 (a)

Removedthe commitment of Ukraine to progress towards more efficient and effective control systems, and to strengthen the fight against money laundering, terrorism financing, tax avoidance, tax fraud or tax evasion, misuse of public funds and corruption;

RemovedCONT 7

RemovedArticle 16 - Paragraph 2 (h)

Removedan explanation of Ukraine’s system to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interests, when using the funds provided under the Facility, and of the arrangements (that aim) to avoid double funding from the Facility and other Union programmes or donors;

RemovedCONT 8

RemovedArticle 16 - Paragraph 2 (h) new

Removedan explanation how Ukraine shall ensure an adequate level of protection of the EU financial interests by applying at least the same standards as provided for in the Financial Regulation and other related EU legislation;

RemovedCONT 9

RemovedArticle 26 Paragraph 1

RemovedUkraine shall publish data on persons and entities that receive(ing) amounts of funding exceeding the equivalent of EUR (500 000) 300 000 for the implementation of reforms and investments specified in the Ukraine Plan referred to in this Chapter. Ukraine shall update those data twice a year, in June and December.

RemovedCONT 10

RemovedArticle 32 - Paragraph 4

RemovedAssistance under this Chapter shall support the creation and strengthening of Ukrainian authorities responsible for ensuring appropriate use of funds, audit and effective fight against mismanagement of public funding, in particular fraud, corruption, conflict of interests and irregularities incurred in relation to any amount spent to achieve the objectives of the Facility.

RemovedCONT 11

RemovedArticle 33 - Paragraph 2 (b)

Removedto take appropriate measures to prevent, detect and correct fraud, corruption, conflicts of interests and irregularities affecting the financial interests of the Union, to detect and avoid double funding and to take legal actions to recover funds that have been misappropriated, including in relation to any measure for the implementation of reforms and investment projects under the Ukraine Plan;

RemovedCONT 12

RemovedArticle 33 - Paragraph 2 (c)

Removedto accompany a request for payment as set out in Chapter III by a declaration that the funds were used in accordance with the principle of sound financial management and for their intended purpose and managed appropriately in particular in accordance with Ukrainian rules complemented by international standards, on prevention, detection and correction of irregularities, fraud, corruption and conflicts of interests, accompanied by a declaration of assurance by the Ukrainian authorities;

RemovedCONT 13

RemovedArticle 33 - Paragraph 2 (c) new

Removedto use the Early Detection and Exclusion System;

RemovedCONT 14

RemovedArticle 33 - Paragraph 2 (e) new

Removedto provide a similar level of access to information and authority to carry out on-the-spot controls as the Commission and the Court of Auditors to the independent external auditor appointed by the Audit Board;

RemovedCONT 15

RemovedArticle 33 - Paragraph 3

RemovedThe Commission shall (strive to) make available to Ukraine an integrated and interoperable information and monitoring system including a single data-mining and risk-scoring tool to access and analyse the relevant data, including the data listed in paragraph 2(d). Where such a system is available, Ukraine shall use and feed the relevant data into the system, including with support referred to under Chapter V. Data shall be inserted in English to allow the Commission and other audit authorities to fulfil their duties without undue delay. The system shall allow for downloads in a machine-readable format.

RemovedCONT 16

RemovedArticle 34 - Paragraph 3 a new