VAT cases send wrong message - Muscat

Labour leader Joseph Muscat today referred to the sentences handed down by the courts in the VAT fraud cases last week, saying the wrong message was being given to those who observed the law.

Speaking on Super One Radio, Dr Muscat said the VAT Department abuses had been going on for years, going back to the time when Lawrence Gonzi was also Finance Minister. At the time, concerns expressed by the Auditor-General were ignored.

Dr Muscat said he hoped that the investigations into the scandal would not net just the small fish but also the sharks. This was the hour of those who claimed to be fighting corruption to prove themselves, Dr Muscat said.

Dr Muscat also referred to the contract awarded for the power station extension and said the PL would keep up its protests.

This was a €200 million projectand yet the system would have to be changed after seven years, he said.

The government had opted for this tender when it could have selected cleaner technology. The excess funds spent on this project could have been better spent on other projects, including the €4 million which would go on commissions.