Tender Dossier (PDF) - Eulex

41.11. Such unusual commercial expenses are commissions not mentioned in the maincontract or not stemming from a properly concluded contract referring to the maincontract, commissions not paid in return for any actual and legitimate service,commissions remitted to a tax haven, commissions paid to a recipient who is notclearly identified or commissions paid to a company which has every appearance ofbeing a front company.41.12. The Contractor undertakes to supply the Commission on request with all supportingdocuments relating to the conditions of the contract's execution. The Commission maycarry out whatever documentary or on-the-spot checks it deems necessary to findevidence in cases of suspected unusual commercial expenses.Article 42 - Administrative and financial penalties42.1. Without prejudice to the application of penalties laid down in the contract, a Contractorwho has been guilty of making false declarations, has made substantial errors orcommitted irregularities and fraud, or has been found in serious breach of itscontractual obligations, may be excluded from all contracts and grants financed by theEU for a maximum of five years from the time when the infringement is established,as confirmed after an adversarial procedure with the Contractor. The Contractor maypresent his arguments against this penalty within 30 days of notification of the penaltyby registered letter with acknowledgement of receipt or any equivalent means. In theabsence of any reaction on the part of the Contractor, or of withdrawal of the penaltyby the Commission within 30 days of receipt of the Contractor's arguments against it,the decision imposing the penalty shall become enforceable. That period may beincreased to ten years in the event of a repeat offence within five years of the firstinfringement.42.2. If the Contractor is found to have seriously failed to meet its contractual obligations,other than foreseen in Article 21, it shall also be subject to financial penaltiesrepresenting 2-10% of the total value of the Contract. That rate may be increased to 4-20% in the event of a repeat offence within five years of the first infringement.42.3. Where, after the award of the contract, the award procedure or the performance of thecontract prove to have been subject to substantial errors, irregularities or fraud, andwhere this is attributable to the Contractor, the Contracting Authority may refuse tomake payments, may recover amounts already paid or may terminate all the contractsconcluded with this Contractor, in proportion to the seriousness of the errors,irregularities or fraud.Article 43 - Checks and audits by European Union bodies43.1. The Contractor will allow the European Commission, the European Anti-Fraud Officeand the European Court of Auditors to verify, by examining the documents and tomake copies thereof or by means of on-the-spot checks, the implementation of theproject and conduct a full audit, if necessary, on the basis of supporting documents forthe accounts, accounting documents and any other document relevant to the financingof the project. These inspections may take place up to 7 years after the final payment.43.2. Furthermore, the Contractor will allow the European Anti-Fraud Office to carry outchecks and verification on the spot in accordance with the procedures set out in theEuropean Union legislation for the protection of the financial interests of the EuropeanUnion against fraud and other irregularities.43.3. To this end, the Contractor undertakes to give appropriate access to staff or agents ofthe European Commission, of the European Anti-Fraud Office and of the EuropeanCourt of Auditors to the sites and locations at which the Contract is carried out,including its information systems, as well as all documents and databases concerningthe technical and financial management of the project and to take all steps to facilitate2011 Page 49 of 166