on the position to be taken by the European Union within the ACP-EU Committee of Ambassadors regarding approval of derogations to the Financial Regulation of the Centre for Development of the Enterprise (CDE)

EXPLANATORY MEMORANDUM

The Centre for the Development of the Enterprise (hereinafter referred to as 'CDE') is a body established by Annex III of the ACP-EU Partnership Agreement.

The CDE's legal framework is composed of the Statutes and Rules of Procedure of the Centre for the Development of the Enterprise, adopted by Decision No 8/2005 of the ACP-EU Committee of Ambassadors (hereinafter referred to as 'CDE Statutes'), the Staff Regulation of the Centre for the Development of the Enterprise adopted by Decision No 9/2005 of the ACP-EU Committee of Ambassadors, and the Financial Regulation of the Centre for the Development of the Enterprise, adopted by Decision No 5/2004 of the ACP-EU Committee of Ambassadors (hereinafter referred to as 'CDE Financial Regulation').

At its 39th session held on 19 and 20 June 2014 in Nairobi, the ACP-EU Council of Ministers agreed, in a Joint Declaration, to proceed with the orderly closing of the CDE. In this Joint Declaration, the Council of Ministers delegated powers to the ACP-EU Committee of Ambassadors to adopt the necessary decisions to take the closure of the CDE forward.

Since June 2014, progressive steps have been completed in view of the CDE closure. In the process towards closure of the CDE, some adjustments of the CDE Financial Regulation are required in this specific context.

The CDE Financial Regulation was adopted by the ACP-EU Committee of Ambassadors, being the Supervisory Authority of the CDE as per the CDE Statutes. In a letter dated 19 October 2015, the CDE Executive Board is therefore requesting the ACP-EU Committee of Ambassadors a prior approval to derogate to the CDE Financial Regulation. These derogations concern:

i) the possibility to organise one multiannual statutory audit for the last four years of the existence of the CDE (i.e. from 2013 to 2016) instead of the obligation of annual statutory audits as foreseen in Article 27.5 of the CDE Financial Regulation,

ii) to that end, the possibility to sign a contract with one audit firm, despite the fact that the CDE Financial Regulation foresees in Article 27.1 that the same audit firm cannot be appointed for more than three consecutive years.

In order to ensure a smooth implementation of the CDE closure, it is proposed that the ACP-EU Committee of Ambassadors grants a delegation of power to the CDE Executive Board to adjust the aforementioned CDE Regulations according to its specific needs in the framework of its orderly closure.

2016/0013 (NLE)

Proposal for a

COUNCIL DECISION

on the position to be taken by the European Union within the ACP-EU Committee of Ambassadors regarding approval of derogations to the Financial Regulation of the Centre for Development of the Enterprise (CDE)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 209(2) in conjunction with Article 218 (9) thereof,

Having regard to Annex III of the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part (hereinafter referred to as 'ACP-EU Partnership Agreement'), and in particular Article 2(6) thereof,

Having regard to the Decision No 5/2004 of the ACP-EU Committee of Ambassadors of 17 December 2004 concerning the Financial Regulation of the Centre for the Development of Enterprise (hereinafter referred to as 'CDE Financial Regulation'),

Having regard to the proposal from the European Commission,

Whereas: