European Commission seeks refund from YMCA Valletta

The European Commission yesterday launched judicial proceedings in Malta against YMCA Valletta for the refund of funds granted to the organisation for two charitable purposes.

The EC told the First Hall of the Civil Court that, by means of a judgment delivered last July, YMCA had been ordered to refund a total of €17,498.67. The foreign judgment was declared to be enforceable in Malta by the Attorney General's Office.

In a judicial letter filed against the YMCA Valletta, the EC told the court that in 2001 YMCA had applied for two subsidies in order to set up two projects, namely Violence & Under Privileged Young People and Supporting The Homeless. Among the conditions for these subsidies was that the beneficiary had to provide the EC with a final report on the projects. The YMCA had obtained €13,539 in February 2001 and €6,672 in January 2002.

In May 2003 and in January and May 2004, the EC had requested clarifications about the final reports submitted by the YMCA but these had not been forthcoming.

In August 2004, the EC had decided, following an appraisal of the reports, that certain expenses claimed by the YMCA were ineligible. As a result, the final subsidy allocated to the YMCA was of €1,169 for one project and €4,080 for the other. The EC then informed the YMCA that it would be requesting a refund of some of the subsidies originally granted but the YMCA had failed to effect payment. The EC had decided against the YMCA last July and ordered the YMCA to refund a total of €17,498.67 from the subsidies together with legal interest.

The EC has called upon the YMCA to effect the refund in terms of last July's ruling.

Lawyers Mark A. Mifsud Cutajar and Italo R. Ellul signed the letter on behalf of the European Commission.