Ombudsman welcomes EC improvements in late payment problems but will keep track on them
In a recent report, the European Ombudsman has commended the European Commission for the progress it has made in recent years in reducing its late payment problems. These are some of the results following an investigation and a public consultation that the Ombudsman conducted on this issue, which show that although there has been significant improvements, problems still persist.
Since 1995, the Ombudsman has conducted more than 60 investigations concerning late payments by the Commission. Most of these complaints were lodged by NGOs, companies, research centres, universities, and other associations involved in projects receiving EU Funding or public procurement contracts with the Commission. In addition, the Ombudsman has opened three investigations on his own initiative into measures taken by the Commission to improve the situation.
Further to these complaints, the European Ombudsman announced his intention to investigate Commission's late payments in March 2009, and then launched a public consultation on the matter in January 2010. Lack of co-ordination and excessive bureaucracy in the Commission were among the reasons listed for delays. Some contributors stated that, when faced with problems, interested parties are disinclined to contact the European Ombudsman for fear that doing so may result in their losing the Commission as a customer.
The Ombudsman concluded that measures, such as stricter time limits and increased use of lump sum payments, taken by the Commission to reduce late payment problems, have borne fruit and the proportion of late payments decreased from more than 22% in 2008 to 14% in 2009. Furthermore, the overall sums of money affected by delays more than halved between 2008 and 2009. However, as there was no more recent data, the Ombudsman also invited the Commission to submit its 2010 figures as soon as possible, to enable him further to monitor the situation.
Problems remain, however, on other issues, including the amount of interest paid following payment delays. The Ombudsman also stressed that he would vigorously investigate any complaint alleging that a contractor had been discriminated against after turning to the Ombudsman. In order to continue monitoring the situation,
the Decision of the European Ombudsman asked the Commission to submit the figures for its performance in 2010 as soon as they are available.