Fenech says resale of State-bought car is 'not relevant'

Former finance minister Tonio Fenech has argued that the resale of his Honda CRV Estate for €7,900 was irrelevant because what he did with his property “is not relevant”.

According to newspaper reports, Fenech tried to make a profit of almost €6,000 off the car he bought from the state. The Honda was advertised on Maltapark only to be removed when a parliamentary question on the car was published.

It was revealed in parliament that Fenech, who served during the Gonzi administration, paid €1,908 for his second car in March 2013. The Honda CRV Estate was originally bought for €25,401 in 2004.

Fenech argued that the car was acquired in accordance with government procedures. He also said that he could have opted for a €7,000 yearly allowance instead of the second car.

According to The Times, a memo signed in 2009 by the permanent secretary at the finance ministry stated that all retiring officers entitled to a fully-expensed vehicle had the right to purchase the car upon retirement.

It also advises that the purchase price originally paid by the ministry or the department when the car was purchased “is to be depreciated by 25 per cent yearly on the reducing balanced method, the resulting amount being payable by the retiring officer in the ministry or department where the retiring officer was employed last”.

Fenech told MaltaToday that what he paid for the car on 7 March 2013 was not based on the market value but the “value determined by the ministry on a formula that is used for everyone and set well before my appointed”.

The PN MP also said that he paid €10,700 in taxes, “that conveniently everyone wants to ignore”.

“If the formula is not a fair one then it should be changed … what I do with my property is not relevant,” he added.