Updated | Opposition spokesman suggests 'fraud' behind waste collection figures

Following an article which appeared in the Sunday edition of MaltaToday, Opposition spokesman on sustainable development Leo Brincat said the GreenMT case could be a case of “fraud”.

Adds GRTU's reaction

In a statement issued following the PL's press conference, the GRTU insisted that since its scheme paid for the collection of this waste it did nothing wrong in declaring this waste in audited accounts: “We did not inflate our figures with waste which did not belong to us.”

Earlier: Describing it as an abuse of public funds, Labour spokesman Leo Brincat said government should immediately initiate an investigation into the claims that GreenMT – the GRTU’s waste recovery scheme – has inflated its 2009 waste collection figures.

Yesterday, MaltaToday on Sunday reported how GreenMT admitted to collecting grey bags from councils which at the time did not have a contractual agreement with either of Malta’s two waste recovery schemes.

The waste collected from these councils helped the company reach the established quota it needed to obtain a permit to operate from the Malta Environment and Planning Authority.

Brincat said both MEPA, the authority which issues the permit for the recycling schemes, and Wasteserv Ltd had known about the case, as formal complaints were lodged in May.

“I believe that in two months, government should have done something more substantial, rather than having MEPA say that it’s reviewing audit reports sent by the company itself,” Brincat said, adding that even though the alleged case took place in 2009, the quarterly reports for the eco-contribution are still being processed  today.

He added that having tax rebates coming out of public funds, makes the issue more serious and it is government’s role to investigate: “If the alleged case is true, then it’s a case of fraud because it is abusing of public funds and thus I expect an investigation to take place.”

“It’s in public interest to know whether Prime Minister and Minister George Pullicino are going to answer a number of questions being raised.”

Brincat added that he – like MEPA – has long been receiving information on irregularities in the sector. He said that the responsibility should be shouldered by Prime Minister Lawrence Gonzi, who is responsible for MEPA and Pullicino who is responsible for Wasteserv Ltd.

“Gonzi and Pullicino have a lot to answer for, amongst which whether they asked the Police Commissioner to investigate the allegations.”

Brincat questioned why government has remained silent about these allegations and what responsibility it will be carrying.

The impression of many in the waste sector is that government “is trying to favour one of the companies”. However, Brincat stopped short of mentioning the company by name.

He added that the same company – which he separately identified as GreenMT in parliament – had been permitted to operate for about six months even though it did not have the necessary licence.

“I ask whether this company had been given the eco-contribution rebate and government has the duty to see that this did not happen,” Brincat said.

Brincat pointed towards a circular sent to MHRA members by association CEO George Schembri, dated before any permit had been issued, which claimed that even though GreenMT did not have the necessary permit at the time, Minister Pullicino had assured MHRA that the company would soon have the necessary permits.

“What worries me is the fact that permits are issued by MEPA, and not MRRA, for which Pullicino is responsible,” Brincat said, adding he could not understand how Pullicino could have made such a statement.

“Considering everything that has been going on, the situation is worrying. Government must assure that there is a level playing field in the sector and an investigation should be carried out,” he reiterated.

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Mela sew you buy waste for 1 euro and get 1 million in subsidies. The thought be hid this trade s irresponsible and calls for action by the police commissioner. BUT as always soon we see gonzi aging that he would ask for vince resignation from the PN if he wasn't wise enough to do what he did. Defending the undependable
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One is tempted to say: "of course there is fraud". This system will inevitably created fraudulent behaviour. Producers and importers placing packaging on the market must pay by volume on the packaging they place on the market - granted and agreed. But the part of the law which then makes it the obligation of these businessmen to collect an equivalent amount of garbage - and then get a refund - is just plain stupid. These people are not garbage collectors. They therefore have to sign up with a company, for whom every piece of garbage collected is worth money. No wonder there is fiddling with the figures. Restrict the amount of packaging and make companies pay through Eco contribution. But leave garbage collection to be a centrally coordinated effort - not a business. It lends itself too well to fraud and corruption and you risk making it an even dirtier business.
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JGPEM mhux biss, imma għandu jiġbor lura l-flus li tħallsu u jitfa l-ħabs lil kull min kien involut fil-korruzzjoni u barra s-sentenza ta' ħabs jibqa' hemm sakemm iħallas kollox lura. . Għalhekk l-ewwel biċċa xogħol li għandu jagħmle il-Labour huwa li jneħħi l-preskrizzjoni u jagħti kull protezzjoni minn xi passi kontra min jikxef il-korruzzjoni.. . Barra minn hekk, għandu jqabbad lil Moody's, Standard and Poor's u kumpaniji oħra ta' fama internazzjonali biex jiflu l-kontijiet tal-Gvern u kull kuntratt li ingħata minn Gvern Nazzjonalista u jneħħi l-immunità PArlamentari lil kull Membru Parlamentari ħalli kulħadd jieħu dak li ħaqqu.
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And were is the money ?? did it goes for Vince Farrugia MEP campain? I remember at that time the office, with the GRTU employees was in full swing working for Vincent Farrugia MEP campaign...kollox possibli viva Gonzi !!!!
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Ikun tajjeb ukoll li kemm Dr Gonzi u l ministru ikoncernat mil ambjent jara li l pikki u l interessi personali li hemm bejn l managers li ghandhom fit tieni sular ta Hexagon House jieqfu ax minhabba dan l klijenti qedin ibatu u l povri clerks normali. Fl ahhar mil ahhar ghal interessi ta 2 jew tlieta min nies qied ibati l ambjent Malti.
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Sur Leo Brincat ghalkemm inthom il MP Laburisti qedin tghamlu DMIERKOM inhoss li il PN fil gvern Dr Law. Gonzi u SHABU XORTA QEDIN JIBQAW jghamlu li JRIDU Ghadna PROBLEMA OHRA SERJA EKONOMISTI GERMANIZI qedin ghidu li is SITWAZJONI ta MALTA hija SERJA daqs tal Grecja fil waqt li il PM Law.Gonzi u il ministru tal finanzi Dr Tonio Fenech qedin JICHHDU Jien nahseb li l-Ekonomista Germaniz ghandu RAGUN ghax kieku VERA l-EKONOMIJA SEJRA TAJJEB BHAL MA QED GHIDU DR GONZI U DR FENECH kieku il gvern ma GHANDUX GHALFEJN LIL POPLU ISSALBU BIT TAXXI Jien nitlob lil Dr Joseph Muscat li jekk jigi li ikun fil GVERN certi KUNTRATTI JIFLIHOM sewwa ghax XAMMA ta KORRUZZJONI UHUD MINNHOM FIHOM ZGUR EZEMPJU ricentament Dr Austin Gatt ta XIEX taghhomlu lil GORG BUSUTILL tal konsulenzi fuq il karozzi tal linja ghal FREJJEG LI GHAMEL ghalhekk nitlob li issir GUSTIZZJA BIEX IS SEWWA JIRBAH ZGUR FRAZI TA GHAREF L-iehor Dr Eddie Fenech Adami