NAO requested to investigate possible misuse of public funds

Update: The National Audit Office has published its findings, confirming malfeasance.

The Daphne Caruana Galizia Foundation has asked the National Audit Office to investigate direct orders issued by the Ministry of Transport, Infrastructure and Capital Projects, to The Events Company, known as TEC Ltd, supposedly for the launch event of the Malta Metro project.

The information regarding the direct orders from the Ministry of Transport, Infrastructure and Capital Projects to TEC Ltd (“TEC”) was published in the Government Gazette, triggering an investigation by journalists.

Quid pro quo

The evidence regarding the disparity in pricing for services shown on campaign expense declarations versus market prices for the same services indicates that profits from the public contracts awarded to TEC are reinvested by the company in supporting the governing Labour Party’s campaigns and those of its candidates, by means of underpriced services for campaign events.

The Foundation has asked the National Audit Office to assess whether there is a legitimate economic rationale for the public contracts by auditing those deals, both past and current, bearing in mind the circumstances within which they were made.

The request for an investigation was made in terms of the Auditor General and National Audit Office Act.