Panayiotis Rougalas
In an inadvertent error, support payments totaling EUR 13.82 million were extended to 152 cases, failing to meet subsidy criteria under the Plan's terms and conditions. While a significant portion of the reimbursement issue has been addressed, approximately EUR 2 - 3 million remains outstanding.
Responding to MP Ms. Irene Charalambidou's inquiry about managing the mistake of providing state sponsorship to ineligible entities through the State Support Scheme for Enterprises and Self-Employed Persons, Finance Minister Mr. Makis Keravnos explained that an Investigating Officer was appointed in July 2021 to conduct an administrative investigation in the Department of Taxation. The aim was to identify reasons for erroneous payments to non-beneficiaries under the State Sponsorship Scheme subject to VAT and determine liabilities.
Keravnos clarified that, due to the urgency of providing liquidity to beneficiary cases, the Ministry of Finance collaborated with the Department of Taxation. Using information from VAT returns submitted by taxable persons in 2019 and 2020, a special algorithm calculated the amount of state support for each beneficiary business.
In parallel with payment processing, checks were conducted to confirm Plan terms and conditions satisfaction by beneficiaries. Where inadvertent rollovers occurred, immediate reimbursement requests were made in writing.
Regarding the 152 cases totaling €13.82 million, the Minister noted that 10 cases (€0.94 million) were classified as International Activity Companies and 99 cases (€10.22 million) had state support consolidated and refunded, respectively. In one case (€0.03 million), an objection was accepted, preventing state support reimbursement.
The challenge lies in the pending cases of 42 companies receiving support in error, with 35 facing legal proceedings to recover funds and 7 submitting rejected objections.
Additionally, seven individuals receiving state support totaling €0.6 million have appealed to the Administrative Court, with objections registered by the Republic for these appeals.
For cases where legal proceedings for recovery were initiated, the Legal Service is advancing efforts for recovery and/or out-of-court settlements for state support reimbursement.
Addressing administrative or disciplinary investigations, the former Finance Minister appointed an Investigating Officer in July 2021. This officer conducted an administrative investigation to ascertain reasons for erroneous payments and identify liabilities, delivering the report to the Director General of Finance on November 5, 2021.
[This article was translated from its Greek original and may have been edited for brevity and coherence]
