VAT Commissioner says he will not resign

The Commissioner of VAT will not be resigning his post despite a police investigation into suspected fraudulent practices by a number of staff members that cost the department millions of euro in lost revenue.

"I was the person who instigated investigations that were then passed on to the police," VAT Commissioner Joseph Sammut said in his defence. Refusing to say whether he would be offering his resignation to the Finance Minister, Mr Sammut insisted he wanted to await the outcome of the police investigation.

Prime Minister Lawrence Gonzi suggested on Sunday there would be no resignations at the VAT Department before the police concluded their investigations.

"I have always believed that the police have their role in the country and we should not influence it," Dr Gonzi had said.

The extent of the scam became clearer when The Sunday Times reported that millions of euro were believed to have been lost as a result of fraudulent practices by department staff going back a number of years. At least eight department employees were arrested last Friday when the police raided the department offices after a three-month investigation.

Those arrested to date do not occupy senior positions within the department, though investigations are continuing.

Sources said a number of businessmen were also being investigated. The wrongdoing came to light after a businessman who had allegedly been approached by staff passed on the information to Finance Minister Tonio Fenech last December.

It is understood that Mr Fenech decided to immediately hand the case over to the police rather than conduct an internal inquiry.

In a brief statement last Friday, the government had said:

"The government will not tolerate any abuse and for this reason expects that every allegation is investigated and all the necessary action taken according to law."

ksansone@timesofmalta.com