Audit flags misuse of uninsured council vehicle and financial mismanagement by Qala council

The Qala Local Council has been using an uninsured commercial vehicle for a number of months, with the locality’s mayor making use of it for personal errands, an audit has found. 

A compliance audit carried out by the National Audit Office, covering the Qala Local Council’s 2023 activities, flagged several issues of concern related to compliance, such as procurement which was, “not carried out in line with the standing regulations, including habitual use of direct orders, which at times were not even covered by a service agreement.”

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The audit also flagged excessive spending from public funds for organising activities, as well as various sponsorships and gratuities to third parties. When it comes to the council’s own audits, the report noted that between 2020 and 2022, the audits were submitted over a year later than they should have been. 

The report underlines frequent failings, such as a never-ending saga for the council to conduct roadworks on Conception Street. 

In February 2019, the council agreed with the Ministry for Gozo to fund road works on Conception Street, but the exact financial commitment was unclear. A tender was awarded to Gatt Tarmac Ltd for €223,914, though the agreement lacked proper endorsement. Later, in July 2021, the Planning Authority funded additional paving work for €39,238, but the direct appointment of Gatt Tarmac Ltd wasn't approved by the Local Government Department.

Costs increased by €82,836 due to stormwater culvert variations, but no documentation justified these changes. The project finished in February 2022, yet final certification was delayed due to incomplete work on an adjoining street, and the contractor’s performance guarantee had expired.

Later in March 2023, the council contracted Gatt Tarmac Ltd for road work on another street for €118,650. However, variations led to suspended work and an urgent council meeting.

The council sought LGD approval for a €94,630 contract modification, but it was denied. They also requested approval for additional interventions worth €443,749, which was also rejected. The council informed the contractor they could only pay the original amount. The Ministry had initially agreed to fund €245,139, later revised to €538,494, but a March 2024 email indicated only €238,808 could be provided.

“Whilst the Council was in receipt of the sum of €245,139.87 from the Ministry back in December 2019, no payment was ever made to the contractor, with the Council claiming that a request for payment was never received. Moreover, the actual cost of the project, as also confirmed by the ES, remains unclear.”

Among other failings, the audit made note of one particular case involving an uninsured truck. In 2022, the council bought a commercial truck, which had remained uninsured until May 2023. The audit further found that no logbook indicating the mileage covered during each journey was maintained. 

Local council members had alleged that the truck was being used by Mayor Paul Buttigieg for personal errands outside office hours, with the audit noting that the Mayor already receives an allowance to use his own transport when travelling on official business.

The outcome of the audit findings were the subject of an animated exchange during a council meeting held last month when it also emerged that the mayor was also an employee of the council. Nationalist councillors claimed this was a conflict of interest and requested that direction be sought from the Department of Local Government on the matter.

An urgent meeting of the council is expected to be held on 20 August.