21. 8. 90 Official Journal of the European Communities No C 208/7 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation (EEC) on stepping up checks on expenditure in Portugal and 
charged to the Guarantee Section of the European Agricultural Guidance and Guarantee Fund 
COM(90) 309 final 
(Submitted by the Commission on 13 July 1990) 
(90/C 208/11) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 43 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European 
Parliament, 
Whereas, pursuant to Article 8 of Council Regulation 
(EEC) No 729/70 of 21 April 1970 on the financing of 
the common agricultural policy (1), as last amended by 
Regulation (EEC) No 2048/88 (2), the Member States 
are to take the measures necessary to satisfy themselves 
that transactions financed by the European Agricultural 
Guidance and Guarantee Fund (EAGGF) are actually 
carried out and are executed correctly, to prevent and 
deal with irregularities and to recover sums lost as a 
result of irregularities or negligence; 
Whereas on 1 January 1991 financing by the EAGGF 
Guarantee Section will extend in Portugal to products 
subject to transition by stages and the tasks incumbent 
on the departments responsible for controls and auth­
orized to pay expenditure in that Member State will be 
considerably greater as a result; 
Whereas the Instituto Nacional de Intervencao e 
Garantia Agricola (INGA) has been designated by the 
Portugese Government in accordance with Article 4 of 
Regulation (EEC) No 729/70 to effect payment of most 
of the expenditure referred to in Articles 2 and 3 of 
(') OJ No L 94, 28. 4. 1970, p. 13. 
O OJ No L 185, 15. 7. 1988, p. 1. that Regulation and in addition to ensure the coordi­
nation and processing of data concerning all expen­
diture, including those payments which are actually 
effected by other authorities designated for the purpose; 
Whereas the INGA does not have data-processing infra­
structures optimally to ensure the collection, processing, 
checking and transmission of all data on expenditure 
financed by the EAGGF Guarantee Section; whereas 
such a shortcoming is likely to hamper sound 
management, checks and the prevention of irregularities 
and fraud; 
Whereas the INGA has drawn up a project to make 
good that shortcoming and in view of the costs has 
requested that the Community contribute financially 
towards its implementation, 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. A Community contribution shall be granted to 
Portugal to enable it to set up a data-processing system 
in the Instituto Nacional de Intervencao e Garantia 
Agricola and links with other paying and monitoring 
agencies. 
2. The data-processing system referred to in 
paragraph 1 must permit the collection, processing, 
monitoring and transmission to the Commission of data 
on expenditure financed by the EAGGF Guarantee 
Section in Portugal. 
It must relate in particular to the sound management and 
the effectiveness of checks and the prevention of irregu­
larities and fraud which may be committed to the 
detriment of that Fund. 
No C 208/8 Official Journal of the European Communities 21. 8. 90 
3. The Community financial contribution may not 
exceed 70 % of the expenditure actually incurred in the 
establishment and commissioning of the data-processing 
system referred to in paragraph 1 and must not exceed 
ECU 4 million in total. 
Article 2 
1. The Community financial contribution may be the 
subject of advance instalments. 
2. For the purposes of applying Article 1 (3), the ECU 
4 million shall be converted into Portuguese escudos by 
applying the exchange rate in force on the second-to-last 
working day of the month preceding that during which 
the balance is paid, and published in the Official Journal 
of the European Communities, CC series. Article 3 
Detailed rules for implementing this Regulation shall be 
adopted as the need arises in accordance with the 
procedure laid down in Article 13 of Regulation (EEC) 
No 729/70. 
Article 4 
This Regulation shall enter into force on the day of its 
publication in the Official Journal of the European 
Communities. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States.