NEWS | Wednesday, 25 February 2009

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Karl Schembri
The junior minister for local councils, Chris Said, is looking into ways of ensuring financial transparency in the wake of investigations kept secret by the VAT department into Marsaskala council’s alleged tax evasion.
Reacting to questions sent by MaltaToday to the VAT department and the director of local government, Said intervened to make sure that the outcome of the investigations are sent to him for review.
“As soon as we have the information regarding the council, we will release it,” the junior minister said.
Last October, MaltaToday reported about the investigations into the council’s failure to declare VAT on its advertising revenues generated from its magazine, Max-Xtajta, and from another publication called Ix-Xatt.
Councillors had protested at the lack of transparency behind the publication, accusing mayor Mario Calleja of failing to produce receipts or accounts related to the magazine.
The story had prompted the director of local government to seek explanations from the council and from the VAT department.
But the VAT department has refused to divulge the results of its inquiry, nor to confirm whether it was concluded.
“I’m looking into the changes necessary to ensure that information about local councils – which are ultimately local governments financed by public funds – is issued more expediently,” Said said.
The office of the prime minister, under whom Chris Said occupies his portfolio, has disagreed with the department’s secrecy.
The director of local government, Natalino Attard, has since requested the inquiry conclusions but the department insisted it would only respond to a ministerial request, prompting Said to file it at the end of the week.

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