Earlier this year the EU halted payments worth a total of 560 million euro under PHARE, the SAPARD programme for aid to farmers and the infrastructure facility ISPA over suspicions of fraud.
“We recognise that steps have been taken regarding the management and control systems for PHARE […], however, most of the measures are promise of future action and have not yet delivered concrete results,” Nagy said. “Because of the contracting time, unfortunately, this leads to loss of funding amounts.”
“For the rest of the money that have been suspended the jury is still out,” she added.
The decision of the EC is unexpected and disappointing, the government in Sofia said in a statement.
"The staff of the two agencies has made exceptional efforts over the last six months to correct the irregularities that have occurred over the years and to meet the requirements of the European Commission," the government said.
The Bulgarian authorities will keep up the pace and will adhere strictly to the European rules and procedures to ensure proper and transparent spending of EU funds, the statement said.
Bulgaria, which joined the bloc in 2007, will have access to some 11 billion euro in EU funds through 2013.
($ = 0.7668 euro)