National Communications Commission Regulations for Subsidizing the Promotion of Innovation and Research of the Communications Industry Article 11

The supervision and examination of the subsidy project shall be conducted according to the following rules:1. The Commission shall examine the implementation status of the project through site-investigation, account checking or other methods during the project implementation period.2. Regarding examinations stated in the preceding Paragraph, the subsidized target shall cooperate with the Commission and provide the project progress report or provide details of the budget use.3. Where the subsidized target falls under any of the following circumstances, the Commission may reduce the management fees of the year or years afterwards and request to change the project manager:(1) The implementation status or budget spending fall behind without any improvement.(2) Inconsistency of the implementation items and contract content.(3) The results of abovementioned examination fail to achieve expected results.(4) Violations of contractual terms and conditions.4. According to the examination results, the Commission may carry out a deliberation and then, according to the contract, adjust the project items or budgets or terminate or cancel the contract.5. Where the subsidized target refuses to accept examinations held by the government’s supervisory unit, or fails to make improvement after the examination, the Commission may reduce the amount of budget, stop the appropriation, or terminate or cancel the contract according to the contract.6. Where the subsidized target seriously violates the Regulations, the Commission may terminate or cancel the contract according to the contract.