TERMINATION AND END OF ACTION
The Partner may terminate the Agreement in duly justified cases, for example if changes in circumstances in the field are likely to make it impossible or excessively difficult to continue the implementation of the Action. This could include, for example, cases of force majeure, serious threat to the safety or security of humanitarian workers or beneficiaries, or the inability to ensure compliance with the humanitarian principles.
PROCEDURE
Failing agreement on a solution, either Party may terminate the Agreement by serving 60 days written notice, indicating the:
• the reasons;
• the date on which the termination shall take effect.
With due regard to the principle of proportionality, DG ECHO may decide to terminate the Agreement if the Partner:
- fails to fulfil a substantial obligation incumbent on it under the terms of the Agreement;
- is guilty of misrepresentation or submits false or incomplete statements to obtain DG ECHO Contribution or provides reports that do not reflect reality to obtain or keep DG ECHO Contribution without cause;
- is bankrupt or being wound up, or is subject to any other similar proceedings;
- is guilty of Grave Professional Misconduct proven by any justified means;
- has committed fraud, corruption or any other illegal activity to the detriment of the EU's financial interests on the basis of proof in the possession of the European Commission (i.e. by DG ECHO or other Commision services and Directorates-General);
- fails to comply with the reporting obligations in accordance with Article 3.13;
has committed any of the failings described in Article 12.3 on the basis of proof in the possession of the European Commission.
PROCEDURE
The DG ECHO must formally notify the Partner of its intention to terminate the Agreement, specifying the reasons thereof, and inviting the partner to submit observations within 30 calendar days from the receipt of the notification.
If the Partner does not submit observations, of if, after examination of the observations submitted by the Partner, DG ECHO decides to pursue the termination, DG ECHO may terminate the Agreement serving 7 days’ prior notice.
EFFECTS OF TERMINATION
In case of termination of the Agreement, the final amount to be paid by the DG ECHO should cover:
- payment only for the part of the Action carried out up to the date of termination;
- in the situation of suspension for exceptional circumstances (described in articles 12.5 and 12.6 of the HACA General Conditions), the unavoidable residual expenditure incurred during the notice period; and
- in the situations described in articles 12.5 and 12.6 of the HACA General Conditions, the reimbursement of legal commitments the Organisation entered into for implementing the Action before the written notice on termination was received by it and which the Organisation cannot reasonably terminate on legal grounds.
In any case, the provisions of the Agreement shall continue to apply after the termination, to the extent necessary to allow an orderly liquidation of the Agreement.
From the date when the termination takes effect, a Final Report and a request for payment of the balance shall be submitted in accordance with Article 3 and 19.
If the Partner fails to submit a progress or final report, together with the accompanying documents by the deadline set in the Agreement, the Organisation shall inform DG ECHO in writing of the reasons.
If the Organisation fails to comply with this obligation for two months, following the deadline set in the Agreement, there shall be no additional time period for the Organisation to produce a Final Report and the DG ECHO may terminate the Agreement and refuse to pay any outstanding amount and recover any amount unduly paid.
REFERENCE & DOCUMENT
GENERAL CONDITIONS, ARTICLE 13 – TERMINATION
EN
