Distribution of Compensation Awards by Submitting Entities

     Award funds are sent by the Commission to the Governments (or international organizations in the case of individuals who were not in a position to have their claims filed by Governments) that originally submitted the claims, and these Governments (or international organizations) are responsible for the distribution of compensation to successful claimants.

     According to decision 18 of the Governing Council, Governments and international organizations are required to distribute the funds made available by the Commission to successful claimants within six months of receiving payment and to report on payments made to claimants no later than three months thereafter. Further, Governments or international organizations that receive compensation payments on behalf of claimants must submit "distribution" reports to the Governing Council within a certain time describing the mechanisms for the making of payments to claimants and detailing the amount and date of payment. These reports enable the Commission to monitor the distribution of compensation. In addition, at its forty-ninth session in September 2003, the Governing Council determined that submitting entities must also provide an audit certificate, either with the submission of each payment distribution report, or annually, within three months of the end of the calendar year, in order to enhance the transparency of the distribution of future payments.

     Under decision 18, Governments and international organisations are entitled to offset their costs of the handling of claims by deducting a small fee from payments made to claimants. In the case of awards payable to claimants in categories “A”, “B” and “C”, this processing fee was capped at 1.5 per cent, in the case of awards payable to claimants in categories “D”, “E” and “F”, the processing fee was capped at 3 per cent. The processing fee should be commensurate with the actual expenditure incurred and explanations are required to be provided in the reports for any deductions.

     Pursuant to Governing Council decision 48, money that is not distributed within twelve months, for example where a Government is unable to locate a claimant within twelve months of the receipt of award funds, must be returned to the Commission. The Governing Council decided subsequently that further payments to Governments and international organizations should be suspended where Governments and international organizations fail to report on distribution of funds or fail to return undistributed funds on time. Where funds were returned to the Commission, the Commission held the returned amount until the claimant was located, at which time the money was returned to the Government for distribution to the claimant. 

     At its fifty-sixth session (June 2005) the Governing Council set 30 September 2006 as the definitive date for the location and payment to unlocated claimants. As a result, any claimants located subsequent to this date are no longer entitled to receive their award.