The State Audit Office of Hungary conducted an audit regarding the regularity of subsidies provided from the Brexit Adjustment Reserve (BAR).
The purpose of the BAR grant was to ensure that businesses (relating sectors, regions), which suffered damage as a result of the United Kingdom’s exit from the European Union, do not have to dismiss workers and receive compensation for the loss of trade, and be able to implement their planned investments and developments. The condition for awarding the grant was the demonstration of a future loss directly derived from Brexit, proven by documents or verifiable justification.
In addition to examining the development of the regulatory framework, the audit was carried out with respect to 15 projects, where the State Audit Office of Hungary audited the regularity of decisions on requests on grants, payment applications, payments and professional reports.
Based on the numerous and significant deficiencies and errors found, the SAO of Hungary proposed that the managing authority and the head of the participating organisation investigate all BAR projects and take the necessary measures. The managing authority indicated that it intends to take action as soon as possible in order to eliminate the found irregularities.
Full text report is available in Hungarian here.