Refalo denies fraud in San Giljan waterpolo pitch case

Tourism Minister Michael Refalo has denied any fraud was involved in the government`s payment of Lm60,000 for works at San Giljan waterpolo pitch which still have to be carried out. He was replying in parliament to remarks made last week by Labour MP Joseph Cuschieri.

The minister, who was the minister responsible in 1995 as Minister of Justice and the Arts, said the funds had been allocated by the ministry for improvement to the waterpolo pitch. When the year was approaching its end and the funds remained unused, the president of the club was warned that unless the funds were used, they would have to be returned to the treasury and there was no guarantee they would be given back when works started.

Ministry officials suggested that the money be handed to the club for use when works were taken in hand. The president of the club declined, saying he could not assume that responsibility, especially since there could be a change of president.

It was eventually decided that the money would be handed over to the contractor selected by the club for the works to be carried out. That was what happened, with the contractor choosing to issue the relevant invoices.

Mr Cuschieri had said that a court had decided that the contractor was not guilty of fraud, Dr Refalo observed. This was correct because no fraud was involved. Anybody keeping a third party`s funds with his permission was not committing fraud. It was now up to the club to insist that the works were carried out by the contractor.

The remarks were made when the House continued its debate on a motion for the transfer of properties to a number of sports and voluntary organisations.

Dr Refalo reacted to other opposition remarks, saying motions such as this for the transfer of properties to sports and voluntary organisations were started on the initiative of the Nationalist government in 1996.

Referring to remarks by Dr Anglu Farrugia (MLP), the minister said the government was not imposing undue burdens on the clubs that were given properties. Indeed the groundrents being charged were low and similar to the rates charged when a similar motion was moved by the Labour government.

Dr Refalo said he felt that certain conditions regarding the contract for the transfer of the Marsa grounds to the Marsa Sports and Country Club should be reviewed and amended. This was a one-off contract and not an ordinary one.

Referring to Mr Cuschieri`s comments on the kiosk in Tower Road, Sliema, Dr Refalo said he wanted to table an affidavit by the owner of the kiosk Mr Silvio Zammit who declared, among other things, that the kiosk was family-owned; that the property was rented from the government; and that he had all the necessary permits to carry out development at his own expense. He also declared that the development was being carried out by a private contractor and that he had himself cleared the staircase next to the site. It was not public sector workers who had done this work. He also invited Mr Cuschieri to repeat his comments outside the House so that proceedings could be instituted in court.

Labour MP Evarist Bartolo said land was a limited resource in Malta and it could not be squandered.

He asked how the Environment and Planning Authority was still processing development applications connected to the Chambray project when the developers had not submitted the Lm150,000 bond which the authority had demanded because of certain works done on the site.

He said it was positive that many of the properties mentioned in this motion would be handed over to sports organisations. Surveys had repeatedly shown that too few Maltese took part in sports. Two thirds of the Maltese never even attended a sports event. Too many were obese.

The Labour MP said that in handing over properties to sports organisations, it had to be ensured that the problems these organisations had were not complicated instead of solved. Some organisations complained that they incurred new maintenance costs when given such properties. Others could not use the properties for loan requirements. Nor could they use them for fund-raising activities.

In many countries abroad, non-governmental organisations involved in sports and culture were grouped in what was known as the "third sector" and were considered differently from commercial organisations. Such organisations benefited from fiscal incentives, such as lower utility bills. In Malta such NGOs paid for utilities at the same rates as commercial organisations. They were also charged VAT.

Mr Bartolo said he felt that the Malta Amateur Athletics Association should, as promised, be entrusted with the running of the Matthew Micallef athletics track under conditions which ensured there was access to all.

Mr Bartolo referred to sports facilities in schools and said that agreements should be reached with the schools whereby such facilities could also be used after school hours by members of the public. With such localities lacking in Malta, what was available should be used as much as possible with all-round cooperation and without undue duplication of effort.

He said that organisations that were given properties should draw up business plans on how they planned to use and develop those facilities, and they should be assisted accordingly.

Sports associations should be assisted because they helped young people to keep away from crime. This would benefit society as a whole.

Notary Charles Mangion (MLP) said that the government should not consider making a profit or recurrent revenue when transferring property to associations such as the Eden Foundation and sports clubs. One had to consider their social roles.

He called for an assessment of the conditions of the contracts. How many inspections and reports had been carried out by the Malta Sports Council, which was supposed to have a monitoring role? How many associations which had already been given public properties had not met the agreed conditions stated in the contracts?

Notary Mangion said the government should encourage public-private partnerships for the development of sports facilities.

The government should explain why in certain contracts the government, educational bodies and local councils were being given the option to use the facilities involved, and in others they were not. This, he said, should be a uniform clause in all the contracts.

He observed that many clubs sought to set up a bar on their premises and this was rented to third parties. This should be specifically provided for in the contracts.

He observed that government was transferring 1.3 tumoli of land in a prime site to Maltacom plc at a very reasonable price, that is Lm280,000. He appealed to Maltacom, a public entity, to improve the service offered to the public and to keep in mind that it had been given public land, when establishing tariffs for services on which it had a monopoly.

Mr Chris Agius (MLP) said sports was healthy for society as it helped keep people physically fit. Furthermore, sports helped to keep young people occupied and hence away from drugs and alcohol.

He welcomed the transfer of property to Sedqa, the YMCA and especially the Eden Foundation, which was working together with the ETC to integrate disabled people into society. He observed that 10 bocci clubs would benefit from the transfer of land. This showed that this traditional game was being acknowledged.

Dr Louis Buhagiar (MLP) said parliament should take every measure to help sports and culture organisations, NGOs and organisations such as Sedqa because their work was of benefit to society as a whole.

He observed that too few people were appreciating culture.

Dr Buhagiar insisted that public property should be transferred only for purposes that benefited society. Land should not be given to individuals for their personal business use.

He asked how an application had been made by a private company to build a home for the elderly above the Qormi health centre.

Ms Rita Law (MLP) insisted that more needed to be done in favour of the sports sector.

She said that VAT was a burden on sports clubs. Although on the one hand everyone was in agreement that sports was beneficial, the government was still imposing taxes on the sports sector.

Ms Law called for better sports facilities in Fgura.

She insisted that a Sports Law should be enacted and that advertising of sports and fitness equipment and weight-loss products would be regulated, because the use of some of this equipment and products was actually harmful.

Winding up the debate, Home Affairs and Environment Minister Tonio Borg moved an amendment to the motion, providing that the golf course being awarded to the Marsa Sports Club would be handed by the club to its affiliate the Malta Golf Club.

Reacting to remarks during the debate, Dr Borg said some properties were being granted on rent, and not emphyteusis, only because the process for the expropriation of those properties had not been completed by the government. Where possible, properties were granted on emphyteusis because they could thus be used as collateral by the societies wishing to borrow funds.

Dr Borg said that when loans were not repaid and a court ordered a judicial sale of such properties by a bank, such properties could still be used only for the purposes for which they were transferred by the government.

Referring to litigation, Dr Borg disagreed with a suggestion for the setting up of a Sports Tribunal, especially since recourse could now be made to the Arbitration Centre. Indeed the contracts laid down that in the case of litigation, recourse had to be made to arbitration, not the courts.

Referring to the transfer of land to the Marsa Sports and Country Club (the Marsa Sports Club), Dr Borg said the club had been making use of this property for 30 years without title, but had made substantial improvements. In making the emphyteutical grant the government had retained the right to use the facilities for certain days of the year.

The rent, fixed at Lm30,000 annually, was seen as fair, especially considering that the club had used the land for free for 30 years. This was not seen as a bad deal, as Notary Joe Cilia had said. The premises, said Dr Borg, could be used only for sports purposes.

Referring to remarks by Dr Anglu Farrugia on the land being given to Rabat scout group, Dr Borg said the plot was in a very good site. It had a value of Lm30,000 but was being given on a groundrent of Lm300. This, surely, was far from excessive.

The motion was then approved unanimously.