PAYING AGENCY REGULATIONS

SUBSIDIARY LEGISLATION 146.03

PAYING AGENCY REGULATIONS

12th March, 2004

LEGAL NOTICE 126 of 2004, as amended by Legal Notices 195 of 2005,

294 of 2007, 508 of 2010, 182 of 2011, 18 of 2012, 445 of 2013, 296 of

2014 and 14 of 2024.

The title of these regulations is the Paying Agency

Regulations.

In these regulations, unless the context otherwise requires -

"the Act" means the Agricultural and Fisheries Industries

(Financial Assistance) Act;

"Agency " or "Paying Agency" means the Agriculture and Rural

Payments Agency within the Ministry responsible for agriculture;

"aid scheme" means a scheme under which a person may apply

for financial aid;

"authorised officer" means any public officer assigned to carry

out the duties with the Paying Agency;

"competent authority" means the Ministry responsible for European

Union funds;

"EAFRD" means the European Agricultural Fund for Rural

Development;

"EAGF" means the European Agricultural Guarantee Fund;

"farmer" means a person performing or seeking to perform

agricultural work or managing that work on a portion of agricultural

land;

"fund" or "funds" means either the EAGF, the EAFRD or

National Funds;

"Head" or "Head of the Paying Agency" means the person

responsible for the running of the Paying Agency;

"Manual of Procedure" means a set of rules and guidelines

regulating the various operations and procedures to be followed by

the Paying Agency, in accordance with EU laws;

"National Funds" means funds provided by the Government of

Malta.

(1) There is hereby established a Paying Agency, which

shall have the function set out in these regulations , in accordance

with Regulation (EU) 2021/2115 of the European Parliament and of

the Council of 2 December 2021 establishing rules on support for

strategic plans to be drawn up by Member States under the common

agricultural policy (CAP Strategic Plans) and financed by the

European Agricultural Guarantee Fund (EAGF) and by the European

Agricultural Fund for Rural Development (EAFRD) and repealing

Regulations (EU) No 1305/2013 and (EU) No 1307/2013 and

Regulation (EU) 2021/2116 of the European Parliament and of the

Council of 2 December 2021 on the financing, management and

monitoring of the common agricultural policy and repealing

Regulation (EU) No 1306/2013, as in force from time to time.

(2) The Paying Agency shall at all times perform its functions in

accordance with the criteria laid down in Annex I of Commission

D el e g a t e d R e g u l a t i o n ( E U ) 2 0 2 2 / 1 2 7 o f 7 D e c e m b e r 2 0 2 1

supplementing Regulation (EU) 2021/2116 of the European

Parliament and of the Council with rules on paying agencies and

other bodies, financial management, clearance of accounts,

securities and use of euro, and subject to it being accredited by the

competent authority in accordance with those criteria

Provided that the Paying Agency shall suspend the exercise of

its functions if said accreditation is withdrawn or not in force.

(3)

Repealed by Legal Notice 14 of 2024.

(4) The Paying Agency shall adopt and implement Manual of

Procedures developed in respect of the various aspects of its

operation as defined in subregulation (3).

(5)

(a) The person responsible for the running of the Paying

Agency shall be the Head of the Paying Agency.

(b) The Head of the Paying Agency shall be responsible

for the disbursement of EU funds dedicated for the

Common Agricultural Policy and for the day to day

administration of the Paying Agency.

(c) The Head shall be assisted by such authorised officers

as may be assigned to the Paying Agency.

(6) The Paying Agency may issue guidance notes or rules, or

other forms of documents in relation to any aid, measure, scheme

or payments administered by it, as may be indicated in the same

documents.

(7) Any document issued by the Paying Agency in accordance

with sub-regulation (6) and the contents thereof shall be binding

upon all parties in accordance with the law.

(1) Officers of the Paying Agency may request any

information from the applicants, beneficiaries of aid, registered

farmers or in the process to be registered with the Paying Agency,

and as related to or necessary for

(a) ascertaining the identity of any person, the titles or

claims thereof made in relation to land registered or in

the process of being registered in their favour with the

Paying Agency;

(b) determining compliance with obligations arising ex

lege or contractually with the Paying Agency or for

which the Paying Agency has any responsibility

related to supervision, verification, control or

enforcement;

(c) determining and applying any administrative penalties,

or for ascertaining any payments due to the Paying

Agency or any other debit in favour of the Paying

Agency; and

(d) investigating any contestation related to farmers

registered or in the process of being registered with the

Paying Agency.

(2) If the Paying Agency is satisfied that a person is the owner

or emphyteuta of an agricultural land, or has been so identified by a

farmer registered with the Paying Agency, it may disclose to that

person all information in its records and in relation to that land and

to any other person registered or having shown an interest in that

agricultural land

Provided that the Head may prescribe the relevant

procedures and requisites to give effect to any right in accordance

with this sub-regulation

Provided further that without prejudice to this sub-

regulation, the officers of the Paying Agency shall not effect any

disclosure of information without an order to do so by a judicial

authority or without an express obligation to do so in accordance

with the law.

The Paying Agency and its officers and employees and, or

other persons acting in its interest shall not be held liable for anything

done or omitted to be done in the discharge or purported discharge of

any function related to the responsibilities of the Paying Agency,

unless the act or omission is proven to have been done or omitted to be

done, as the case may be, in bad faith.

(Deleted by Legal Notice 294 of 2007).

(Deleted by Legal Notice 508 of 2010).

(Deleted by Legal Notice 294 of 2007).

(Deleted by Legal Notice 508 of 2010).

The Paying Agency shall implement the schemes in terms of

procedures adopted in accordance with all applicable provisions of the

Common Agricultural Policy in accordance with the Treaty as defined

in the European Union Act and other schemes as established by the

Minister responsible for agriculture.

(Deleted by Legal Notice 508 of 2010).

(Deleted by Legal Notice 294 of 2007).

(Deleted by Legal Notice 294 of 2007).

(Deleted by Legal Notice 508 of 2010).

(1) Any dispute against a decision by the Paying Agency on

payment claims shall be settled by arbitration and shall be referred

to arbitration as provided in the Fourth Schedule to the Arbitration

Act within twenty days from the date when a person has been

informed by the Paying Agency of its decision or from the

publication of its decision accordingly, and no person may bring

any action against the Paying Agency after the expiry of that time

Provided that the provisions of this regulation shall not

apply to any claim brought forward by the Paying Agency against any

applicant, beneficiary or any other person

Provided further that the Paying Agency may set up

internal committees made up of its own officers to receive submissions

by applicants or beneficiaries on claims brought forward against them

by the Paying Agency and solely for the purpose of providing

recommendations to the Head on whether it is advisable for the Paying

Agency to reconsider any claim it had so made

Provided further that such committees shall be regulated by

such terms of references as may be prescribed by the Head and that

any decision as to the subject matter of any submissions made to those

committees and their proceedings, is to be taken by the Head and shall

be so presumed to be taken by the Head for all purposes of the law.

(2) Where a dispute on a registration with the Paying Agency

concerns the determination of which farmer contesting a

registration of agricultural land is legally entitled to engage in

agricultural activity thereon, such dispute shall be resolved through

arbitration between the contestants alone

Provided that any arbitration award given shall be without

prejudice to any other lawful impediment against any registration with

the Paying Agency, or the processing of any other application

submitted to the Paying Agency in accordance with any applicable

law.

(3) If, in respect of the same portion of land, more than one

farmer applies at the Paying Agency for the grant of some kind of

assistance, the Paying Agency shall give neither farmer any

assistance until the matter has been definitively resolved as

stipulated in sub-regulation (2)

Provided that the provisions of this sub-regulation shall not

apply in the event that the parties submit a joint declaration stating

who is working the field or is otherwise entitled to the grant under

such terms, provisions and, or conditions applicable to

Provided further that no party may ask to receive previous

aids and may take no action for damages against the Paying Agency

if the Paying Agency acts under the provisions of this sub-

regulation.

(4) In the case of an arbitration in accordance with sub-

regulation (2), the Paying Agency shall be notified of the decision

of the arbitrator once it is confirmed as a final and binding decision

or if an appeal has been filed

Provided that the Paying Agency shall also be provided with

a copy of all the acts of the proceedings when requested by it

Provided further that no obligation as may be applicable to

a r b i t r a ti o n p r o c e e d i n g s fo r t he purposes of r estricting any

disclosure shall apply or be deemed to be violated by whoever

effects the required disclosure

Provided further that for the purposes of any notification or

disclosure it shall suffice if the relevant copies of the documents are

sent to the Head in electronic format and certified as true copies of the

original by a public officer of the competent body.

(5) In any dispute which may arise and which, in accordance with

this regulation, should be referred to arbitration, the provisions of the

Arbitration Act or of any rules made thereunder, relating to mandatory

arbitration, shall apply.

These regulations shall apply to arbitrations instituted after

the coming into force of these regulations; pending arbitrations

shall continue to be governed by the regulations as in effect before

the coming into force of these regulations

Provided that, with regards to pending arbitrations, no party

may ask to receive previous aid or take any action for damages against

the Paying Agency in cases where the Paying Agency decides not to

give assistance to a farmer for the reasons listed in regulation 13(3).