DAJ Letter: When a Contracting Authority, Victim of a Scam, Pays Part of the Public Contract Payment into a Fraudulent Bank Account, It Remains Liable for These Sums to the Contractor, the True Creditor
Summary:
On November 5, 2024, the French Ministry of Economy and Finance’s Legal Affairs Department (DAJ) published a letter addressing a situation where a contracting authority fell victim to a scam and transferred part of a public contract payment to a fraudulent bank account. The DAJ clarified that the contracting authority remains liable for these sums to the contractor, who is the true creditor.
Background:
In the case in question, a contracting authority was the victim of an email scam where fraudsters posing as the contractor’s representatives provided fraudulent bank account details. As a result, the authority transferred a portion of the public contract payment to the fraudulent account.
DAJ’s Position:
The DAJ determined that the contracting authority remains liable for the sums paid to the fraudulent account, even though they were transferred in error. This is because:
- The contractor is the true creditor and has a right to payment for the goods or services provided.
- The contracting authority’s mistake in transferring the payment to the wrong account does not extinguish its liability to the contractor.
- The contracting authority is responsible for verifying the authenticity of bank account details before making payments.
Implications:
The DAJ’s letter emphasizes the importance of contracting authorities exercising due diligence when making payments to contractors. In particular, authorities should:
- Verify bank account details carefully before transferring funds.
- Be aware of potential email scams and other fraudulent tactics.
- Seek legal advice if any doubts arise regarding the legitimacy of a payment request.
Conclusion:
The DAJ’s letter provides clear guidance on the liability of contracting authorities in cases of fraudulent payments. It underscores the importance of both protecting public funds and ensuring that contractors receive payment for their work. By implementing robust procedures and exercising caution, contracting authorities can minimize the risk of falling victim to fraudulent schemes.
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economie.gouv.fr a new article on 2024-11-05 14:12 titled “Lettre de la DAJ – Lorsqu’un pouvoir adjudicateur, victime d’une escroquerie, verse une partie du paiement du marché public sur un compte bancaire frauduleux, il demeure redevable de ces sommes auprès du titulaire du marché, véritable créancier”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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