[32.3 to 32.5]

32.3  Without prejudice to the Authority's rights under Clause 32.2 and to any other express rights under this Contract, where the Contractor has been found to:

32.3.1  be fraudulent in the submission of monitoring reports or claims for payment under Clause 45 (Invoicing and Payment) ("monitoring reports"); or

32.3.2  have submitted two (2) or more erroneous monitoring reports, within a [nine (9)] Month period,

the Authority may by notice to the Contractor increase the level of its monitoring of the Contractor and/or of the Operating Sub-Contractor under this Contract in respect of the relevant Service or Services the subject of such fraudulent or erroneous reporting until such time as the Contractor shall have demonstrated to the reasonable satisfaction of the Authority that it will perform (and is capable of performing) its obligations under this Contract.

32.4  For the purposes of Clause 32.3, the Authority acknowledges that where the Contractor has failed to demonstrate to the reasonable satisfaction of the Authority as required by Clause 32.3 but:

32.4.1  the Contractor has removed the person or persons responsible for the fraudulent reporting; or

32.4.2  in the following [three (3)] Months following the Authority notice (if it has not already been established) the increased level of monitoring of the Contractor and/or of the Operating Sub-Contractor under this Contract in respect of the relevant Service or Services indicates that there have been no further erroneous reports of any kind;

this shall be regarded as sufficient demonstration that the Contractor will perform and is capable of performing its obligations.

32.5  If the Authority issues a notice under Clauses 32.2 and/or 32.3, the Contractor shall bear its own costs and indemnify and keep the Authority indemnified at all times from and against all reasonable costs and expenses incurred by or on behalf of the Authority in relation to such increased level of monitoring arising due to circumstances under Clauses 32.2 and/or 32.3.