Regulation 21 Investigating breaches and suspected offences

(1)

Where the Secretary of State reasonably suspects that regulation 20 applies or that the agreement holder is in breach of any conditions subject to which financial assistance is given, the Secretary of State must carry out an investigation proportionate to the type of breach suspected.

(2)

Where the Secretary of State reasonably suspects that the agreement holder has committed an offence under any other legislation, in so far as it is relevant to an application for, or receipt of, financial assistance, the Secretary of State may—

(a)

carry out an investigation;

(b)

obtain information from any relevant third parties; and

(c)

provide information to any person responsible for examining, investigating or prosecuting such an offence.

(3)

When carrying out an investigation, the Secretary of State may—

(a)

request information or evidence from the agreement holder;

(b)

carry out an inspection under regulation 15, 16 or 17; and

(c)

contact relevant third parties to verify information.

(4)

The agreement holder must provide such assistance, as may be required, during any investigation carried out by the Secretary of State under paragraph (1) or (2).

(5)

Where an investigation is carried out under paragraph (1) or (2), the Secretary of State may withhold financial assistance until the investigation is concluded and, where applicable, determinations are made under regulation 23(1) and (2).