ScotGov loses over £50m of public money after Euro fund irregularities

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And the Herald on Sunday understands that it expects to lose out on a further £12m because of the issues over agreed joint funding of major projects.

They Scottish Government has had to make up the gap from the lost money.

Ministers had been warned by auditors that with funds having been suspended, the EC could impose a maximum penalty of up to 25 per cent of the programme – which amounted to just over £200m The Scottish Government has registered financial penalties of £0.9m in 2022/23 in connection with the fund issues.

READ MORE: ScotGov told to act to allow tracing of ‘lost’ £128m ferry money

The Scottish Government had hoped the issues resulting in the funding suspension would be resolved in the summer of 2019.

It is understood that the problems were only resolved in October, last year when the suspension was finally lifted.

Scotland has been a major beneficiary of European Structural and Investment Funds (ESIF) since 1975 with £820 million allocated for the period between 2007 and 2013.

Scotland was also allocated over £800m over the seven years to 2020 from the Euro funds which require national co-financing from either public or private sources….

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