A conflict of interest is a situation in which persons involved in the preparation, assessment or implementation of a project have a personal, family, economic or other shared interest that jeopardises their impartiality and independence. In the practice of EU funds, it is most often addressed in public procurement – for example, ownership or personnel links between the beneficiary and a bidder, the involvement of a person preparing the tender documents on the side of the supplier, or family ties between commission members and the statutory representatives of bidders are inadmissible. A conflict of interest is also assessed among expert application assessors and the provider's staff. An identified and unmanaged conflict of interest usually leads to a financial correction of 100% of the contract value and may also constitute the criminal offence of manipulation in public procurement. Prevention consists of mapping links through registers, sworn declarations from all persons involved, excluding the affected person from decision-making, and written documentation of the measures taken, which the beneficiary submits during a procurement check.
See also: Public procurement in EU projects, Financial correction.
