Swamped in debts of thousands of liri, Fondazzjoni Trasport Hajja Indipendenti (FTHI) is desperately trying to find a solution to the financial problems it has been facing since last September.
Since January, the cost of transport provided by the FTHI for people with disability increased by Lm1 a week - from 75c to 95c a day. The foundation has been providing this service since 1994.
Speaking exclusively to The Sunday Times last week, Epifanio Vella, senior care worker at Access and a user of the service, said it was most unfair that people with disability had to bear the brunt of a long series of financial problems created through mismanagement and lack of professionalism.
In the past, Mr Vella, who is also PRO of the Maltese Federation of Organisations Persons with Disability (FMOPD), said the National Commission Persons with Disability (KNPD) worked very hard to create an inclusive and integral society for people with disability, taking them forward and creating equal opportunities.
"The Commission deserves all the praise for this but it is most unfair that, after placing me in society and presenting me with endless opportunities, there still have to be obstacles," Mr Vella added.
When contacted by The Sunday Times, Joe Camilleri, KNPD chairman, said the FTHI was an independent, non-governmental organisation governed by its own statute and run by a board of directors made up of two representatives of Fondazzjoni Hajja Indipendenti (FHI), two KNPD representatives and two service users.
The commission, Mr Camilleri emphasised, did not have jurisdiction over any NGO. Its relationship with NGOs was purely one of support and advice.
On the level of principle, the KNPD strongly favoured all actions which encouraged the mainstreaming of persons with disability into society, he said. In reality, the KNPD was mindful of the everyday constraints under which services had to function.
The KNPD, Mr Camilleri added, was very confident that the foundation would make every effort to keep its costs down and that the NGO would take all necessary steps to ensure that the most vulnerable of its clients did not suffer undue hardship.
However, it was up to the FTHI board to set the parameters (such as fees) under which it could continue to function.
Mr Vella feels very strongly about the considerable increase in cost of transportation by the FTHI, especially when the foundation is given a financial subsidy of Lm12,000 every year by the government.
The increase in the cost of transportation, Mr Vella said, was becoming a burden for many service users, especially for part-timers and those on a minimum wage.
Ms Connie Camilleri, FTHI chairman, told The Sunday Times that the foundation could not keep up with its running costs, mainly because of huge fuel expenses and other substantial increases.
"Running costs for FTHI per year, if everything ran smoothly, amounted to Lm34,000," Ms Camilleri said.
She said the foundation was not appreciated enough by the government and also by its users.
It belonged to people with disability who felt they only had rights and not duties. Annual general meetings and fund-raising activities, organised by the foundation, were also extremely poorly attended.
"It is a big shame that very little was done in the past year to try and lift FTHI out of this financial mess. After all, the foundation is providing a much-needed service for the community," Ms Camilleri added.
Last year the foundation operated with two vans, instead of three, due to the breakdown of one of the vans in last year's September floods. "It cost the foundation Lm2,500 to repair the van's engine. In the meantime, the foundation felt it was its duty to keep the service going.
"This cost Lm6,500. Another Lm1,850 was spent on repairs on the remaining van. This cost the foundation over Lm10,000. The foundation also pays a yearly sum of Lm2,500 to Lm3,000 in VAT," Ms Camilleri said.
Mr Camilleri said the Lm12,000 subsidy is passed on to FTHI by KNPD following approval by the NGO Project Selection Committee, within the Ministry for the Family and Social Solidarity.
"FTHI is accountable to the NGO Selection Committee to whom it presents quarterly progress reports as well as an annual evaluation detailing the use it has made of the monies it has received through government grant," Mr Camilleri explained.
In a letter to the Ombudsman, Mr J. Sammut, dated July 3, 2004, Mr Vella also alleges that the person investigating the FTHI debts is also an executive director of the KNPD.
"It doesn't make sense that the person investigating the FTHI debts is one of the original signatories of the Statute of the Foundation and, at the same time, an executive director of the KNPD.
I fail to understand how this individual who fights for the rights of people with disability could also see into the investigation. Doesn't this create a conflict of interest?" Mr Vella asked.
Mr Camilleri denied that the person investigating these debts was a director of KNPD as this was never the case.
"As soon as it became clear that a financial controller would have to step in to help FTHI deal with its present problems, the Controller, with the support of KNPD (which paid costs), commissioned two independent reports from reputable auditing companies.
"Three quotations were issued, in keeping with government procedures, and the most advantageous offer was accepted: that of Deloitte & Touche Ltd," he said.
Regarding the appointment of Mr Fred Bezzina as Controller of FTHI, Mr Camilleri said the FTHI board appointed Mr Bezzina as Controller on his recommendation.
"The appointment was completely above board and carried out according to well-established procedures. While he occupied the position, Mr Bezzina was doing a sterling job," Mr Camilleri said.
"One needs to take into account that the tasks of Controller of FTHI were added to Mr Bezzina's already considerable workload as executive director of KNPD. At the time he was Controller, Mr Bezzina carried all his tasks gratis and on a purely voluntary basis."
Regarding the alleged conflict of interest, he added, neither KNPD nor Mr Bezzina were involved in the running of FTHI prior to the present state of crisis. Throughout his time as Controller, Mr Bezzina was only inspired by the desire to make FTHI solvent and to get it running efficiently for the benefit of its disabled clients, after which he would have withdrawn and the NGO left to govern itself once again.
"I fail to see where the conflict of interest, which Mr Vella is referring to, lies," Mr Camilleri said.
He went on to say that this was now a purely academic point as Mr Bezzina relinquished the post of Controller as of August 1. Mr Bezzina is abroad at the moment and was unable to answer questions in this respect.
"However, I can state that his resignation had nothing to do with any failing on his own part and, indeed, he was given a unanimous vote of confidence by both the FTHI board and the executive of KNPD, prior to his giving up the post," Mr Camilleri said.
Some time ago, a background paper was produced by the then Controller, Mr Bezzina, outlining the issues of debt accumulation, fee structures and the proposed shut-down for five days (which did not take place).
Two reports were also submitted by Deloitte & Touche: one on the state of FTHI until April, 2004, and another charting the way forward for FTHI.
The first report was circulated to members of the KNPD, among whom are also representatives of the FMOPD. The second report was finalised last Friday week and will be circulated as was its predecessor.
According to this report, the main cause of the debt is the floods of last September. The main recommendation was that the subsidy to FTHI would be increased.
In the meantime, any philanthropic organisations willing to help the foundation are urged to contact Ms Camilleri on 2144-2638.