Auditor-General noted VAT irregularities in 2007 - Muscat

The Auditor-General in 2007 had noted irregularities in the VAT Department, at a time when Prime Minister
Lawrence Gonzi was also Minister of Finance, Labour leader Joseph Muscat said today.

The VAT Department had said at the time that it had taken note of the observations, yet it had now resulted that
a web of corruption had existed for years, Dr Muscat said when interviewed on RTK radio.

Among other irregularities, the Auditor-General mentioned two cases, one involving €2 million and another
of over €1,000, which were listed under a wrong VAT number.

Dr Muscat said Malta needed a culture of responsibility where due merit was given to those who deserved it, while
those who failed were made to shoulder their responsibility.

He noted that the Bishop of Gozo, Mgr Mario Grech, in his latest pastoral letter, had said that good administration
of public funds was a blessing, while maladministration could result in financial burdens which had to be carried by
future generations. Mgr Grech had also said that the culture of personal responsibility needed to take root.

In the case of the VAT Department scandal, no one had assumed political responsibility for what had taken place,
Dr Muscat said.

Dr Muscat said the Opposition was expecting a Budget where the government reduced taxes. This was, after all, what it had promised before the general election. It was also what the Eddie Fenech Adami government had done, with then Finance Minister George Bonello duPuis having cut taxes in order to boost spending.

The Labour leader said the government used to argue that it was restricted by subsidies that it needed to give to the dockyard and for power, water and gas, but this argument now no longer applied, and it was therefore shameful that government debt was continuing to grow.