Auditor General asked to investigate Good Causes Fund

MaltaToday understands that a number of commitments taken by the Nationalist administration have raised serious concerns among members of the new government, with serious doubts being cast on the way the Good Causes fund was managed. 

Speaking to MaltaToday, a finance ministry spokesperson said:  "The finance ministry can confirm that the Auditor General's office has been called upon to carry out a detailed investigation of the Good Causes Fund with urgency."

Asked to explain why the ministry asked the Auditor General, Anthony C. Mifsud, to intervene, the spokesperson pointed out that the finance ministry did not feel it was opportune to comment on the Auditor General's investigation or disclose information about specific cases, at this early stage. 

"The new government is determined for the Good Causes Fund to be managed in a responsible, transparent, and above all, accountable manner. The Good Causes Fund is a valuable Maltese institution that has assisted and supported countless good and deserving causes over the years. This government is committed to ensuring that it keeps doing so," the spokesperson said.

However, MaltaToday is informed that the Finance ministry under Tonio Fenech had committed to disburse over €3 million up to the end of 2015, due to various commitments made up to the eve of the 9 March election.

Given the current rate of flow of income into the fund, it could take up to two years for all present commitments to be honoured by the new administration. The current balance of the fund is thought to be in the region of €180,000.

One of the striking commitments taken by the previous finance minister Tonio Fenech is an agreement reached in February 2012 for the fund to pay an association almost €500,000 in quarterly installments of around €50,000 each between 2012 and 2014.

MaltaToday is also aware of another agreement reached by the previous administration which will see an organisation receive approximately €100,000 to sponsor an annual event over a three-year period, starting from 2013.

Similar agreements violate the fund's guidelines for the approval of projects and initiatives, which stipulate that in order to ensure that the available funding is shared by as many beneficiaries as possible, any proposed projects and initiatives can only be considering for financing if their "financing needs are 'one off' in nature and would not make any further claims on the funds to finance any recurrent commitments of whatever nature".

The guidelines also state that the total contributions towards any one proposed project should not exceed €50,000, while "promoters would commit themselves to co-finance their project by a minimum of 33% of its total cost".

MaltaToday understands that such violations were the reason behind the government's decision to ask the Auditor General to investigate the way the Good Causes Fund was administered over the past years.

The investigation is expected to commence in the coming weeks. However, the Labour government does not intend to suspend or terminate the fund and disbursements will be granted according to the commitments taken by the PN government.

It is also understood that the Fund has received new applications which have yet to be vetted for eligibility by the Advisory Board, and the total value of the requested aid exceeds €1 million.

The National Lotteries Good Causes Fund - which falls under the ministry of finance - was set up to help out "individuals, agencies or organisations that have a social, cultural, educational, sport, philanthropic or religious activity".

The Fund generates its income from a percentage of the amount of tax payable from gaming activity and unclaimed prizes.