Ombudsman recommends that Commission pay subcontractor under Galileo project after long delays (link)

Strasbourg, 18 March 2005

Draft recommendation to the European Commission in complaint 530/2004/GG. Strasbourg, 11 March 2005
Full text

The complainant, a small German company, took part in lot H (Galileo Market Observatory - GMO) of the Galilei project as a sub-contractor of ESYS, the principal contractor. The project co-ordinator was a company called GAIN S.A...

The complainant alleged that there had been considerable delays in payment which had caused it severe financial problems.

It made the following claims:

(1) The Commission should release the 15% of the contract sum retained by it and transfer the amount of EUR 12 948,06 to the project co-ordinator or to ESYS;

(2) The Commission should pay to the complainant interest on account of late payment for delays exceeding the period of 60 days foreseen in the contract.

[...]

Conclusion

In view of the above, the Ombudsman makes the following draft recommendation to the Commission, in accordance with Article 3 (6) of the Statute of the Ombudsman:

The Commission should compensate the complainant for the negative effects of its delay in handling cost statements nos 2 and 3.

The Commission and the complainant will be informed of this draft recommendation. In accordance with Article 3 (6) of the Statute of the Ombudsman, the Commission shall send a detailed opinion by 15 June 2005. The detailed opinion could consist of the acceptance of the Ombudsman's decision and a description of the measures taken to implement the draft recommendation.

linkname:European Ombudsman http:///www.euro-ombudsman.eu.int