NAO flags ‘extravagant’ use of public funds by Malta Film Commission

The National Audit Office flagged an “extravagant” use of public funds by the Malta Film Commission in its Annual Report on Public Accounts for 2020.

In its report, the NAO warned that a lack of effective internal controls at the Malta Film Commission resulted in a concentration of authority with the Film Commissioner and no independent oversight.

“This contributed to a disregard to budgetary controls and standing regulations, as well as extravagance in the use of public funds, which in turn translated into a negative working capital of over €1 million in 2020.”

This was only one of the key findings identified by the office. The entire report comprises 42 write-ups on the operation of several Government Ministries, Departments and Entities.

The NAO warned that procurement regulations were being bypassed by a number of entities, including Festivals Malta and the Malta Digital Innovation Authority.

Apart from this, the Education Department repeatedly resorted to direct orders for contractual and professional services.

The office identified Shortcomings in the project management by the Housing Maintenance and Embellishment Company Limited.

Weaknesses in the planning, procurement process and monitoring of capital assets were also prevalent at the Correctional Services Agency.

Additionally, disbursements made from the Investment Fund for Private Schools were entirely based on data submitted by the applicants, with no proper verifications.

Reliance on the respective service provider was also noted in the case of Street Lighting and Other Services that was to be managed by the Ministry for Energy and Water Management.

Last month, a number of prominent local film and TV producers – among other workers in the film industry – chose to boycott the Malta Film Commission’s inaugural edition of the Malta Film Awards, set to take place on 29 January, 2022.

Producers and workers found the event to be a slap in the fact, with €400,000 allocated for the awards alone.