My Department is currently examining approximately 400 cases that submitted invoices from one particular company to verify and support claims under the non-productive capital investment action of AEOS. It is known that in some cases the invoices submitted were for greater amounts than actually paid by the participants.
Funding provided under the scheme comes partly from the EU and partly from the National Exchequer. There is a requirement and obligation to ensure that the expenditure claimed by scheme participants reflects the reality of what took place. For that reason my Department wrote to participants requesting alternative proof that the amounts claimed were in fact the amounts paid.
The person named above was written to on 11 June 2015 regarding the non-productive capital investment claim that they had submitted. This letter requested the submission of alternative verifiable proof to support one of the invoices that was included in the claim. A reply to this letter was received on 18 June last.
My Department officials carefully examined the application in light of this reply; this examination indicated that the amount claimed was in excess of the verified costs. A letter informing the applicant of this determination, and of the proposed penalty, was issued on 14 October. This letter also offered the applicant the right of review. This option has now been requested by the person named and arrangements are being made to have the review carried out as soon as possible.