Southern Africa Development Community Secretariat – Procurement and Grants Policy
(e)
(f)
(g)
(h)
(i)
description of the action or work programme (for operating grants);
the general terms and conditions applicable to actions of this type;
the estimated overall budget of the action or work program;
if the implementation involves procurement, which are the rules to be applied;
the responsibilities of the beneficiary regarding financial management (reporting, monitoring,
targets etc.) and arrangements and time limits for submitting those reports.
(j) payment schedule;
(k) detailed eligible costs of the action or approved work programme or the unit costs, lump sums
or flat rates when applicable;
(l) visibility provisions; and
(m) provisions for suspension and termination.
(2)
SADC Secretariat may, if it deems appropriate and proportionate, require the beneficiaries of grants
to provide a pre-finance guarantee to limit the financial risk connected with the payment of the prefinance for up to the same amount of the pre-financing. An approved bank or financial institution in
the country of the Contracting Authority/the country where the action is being implemented shall
provide the guarantee.
(4)
The guarantee shall be released as the pre-financing is gradually cleared against interim payments
or payments of the balance to the beneficiary in accordance with the conditions laid down in the
grant contract.
Article 70. Payments and controls
(1)
The amount of the grant shall not be final until the Contracting Authority responsible has approved
the final reports and accounts, without prejudice to subsequent checks by the institution concerned,
which shall be carried out in a timely manner.
(2)
The guidelines for applicants and the contract will contain the audit and reporting requisites. The
beneficiary shall comply with these conditions in order to receive the payments. The Contracting
Authority will not pay and bear ineligible costs.
(3)
The contract will contain the payment provisions, which will respond to sound financial
management. The contract will define the conditions for pre-finance and reimbursements.
(4)
If it is proven that the award procedure was subject to substantial errors, irregularities or fraud, the
SADC Secretariat may suspend the procedure and take whatever measures necessary, including
cancellation of grants.
(5)
If, after the award, the award procedure or the implementation of the grant, there is proof that it has
been subject to substantial errors, irregularities, fraud or breach of obligations, the SADC Secretariat
may, depending on the stage reached in the procedure and, provided that the applicant or beneficiary
has been given the opportunity to make observations:
(a) refuse to sign the contract or to give notification of the award decision;
(b) suspend the implementation of the grant; or
(c) terminate the contract.
(6)
If errors, irregularities or fraud are attributable to the beneficiary, or should the beneficiary breach
its obligations under the contract, SADC may reduce the grant or recover amounts unduly paid in
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