Southern Africa Development Community Secretariat – Procurement and Grants Policy proportion to the seriousness of the errors, irregularities, frauds or breach of contractual obligations. The beneficiary will have the opportunity to make observations. (7) Where control or audits prove systemic or recurrent relevant errors, irregularities, fraud or breach of contractual obligations attributable to the beneficiary and having a material impact on a number of grants awarded to that beneficiary under similar conditions, the SADC Secretariat may suspend the implementation of all grants concerned or even terminate them in proportion to the seriousness of the errors, irregularities, frauds and/or contractual breaches. The beneficiary will have the opportunity to make observations. (8) SADC Secretariat will determine the amounts to be reduced or recovered wherever possible and practicable on the basis of cost unduly declared as eligible for each grant concerned, following acceptance of the revised financial statements submitted by the beneficiary. (9) In cases where it is impossible or unreasonable to quantify exactly the amount of ineligible costs for each Grant, the amounts to be reduced or recovered may be determined by extrapolating the reduction or recovery rate applied to the grants for which the systemic or recurrent irregularities have been demonstrated or where ineligible costs cannot serve as basis for determining the amounts to be reduced or recovered, by applying a flat rate, having regard to the principle of proportionality. The beneficiary will have the opportunity to make observations. (10) SADC Secretariat will ensure equal treatment to all beneficiaries. (11) SADC Secretariat shall conduct regular monitoring and evaluation of Grants activities financed by the Secretariat through its dedicated structure. This will include contractors' performance. The provisions of article 47 of part one of this Policy shall be applicable to grants. Article 71. Miscellaneous (1) Provisions of articles 2, 3, 4, 5, 9, 18, 43, 44, 46, 47 and 50 of Part One of this Policy shall apply to grants as relevant. (2) The interpretation of the provisions of this Policy shall rest with the Executive Secretary. (3) In cases where a specific situation is not foreseen in this Policy or in the Procurement and Grants Regulations, the SADC Secretariat may resort to international best practice as implemented by international institutions such as the African Development Bank, the European Union or the World Bank in order to accommodate such circumstances. 46