Investigations into mismanagement of funds by the Sliema local council has been referred to the Internal Audit and Investigations Directorate because the issue was too big for the Local Government Department to handle on its own.
The acting director of the Local Government Department, Martin Bugelli told Sliema councillors during a meeting last night he had forwarded the case to the directorate after carrying out preliminary investigations and monitoring the council's financial operations.
Some aspects of the council's financial operations are also being investigated by the police, sources said.
Earlier in the meeting, a visibly agitated Sliema mayor, Nikki Dimech, proposed that the council steer clear of discussing anything related to direct orders issued by the council or the controversial €300,000 tender for fairy lights along the Sliema promenade. He also proposed to put off a discussion on the minutes of the last council meeting until the department concluded its investigation.
"We came here today to discuss urgent items that require our urgent attention," Mr Bugelli said.
None of the councillors objected and the meeting continued until Mr Bugelli arrived.
Mr Bugelli said: "As of this morning (yesterday), the matter is out of my hands because I referred the case to a higher authority in accordance with the law. I put other work on the back burner to conclude this monitoring exercise and I referred the case because I cannot handle a case of this magnitude myself. I do not have the legal or technical competence to deal with the matter."
Due to the mayor's earlier motion to stop short of discussing the issues under investigation, Mr Bugelli could not give the full details of the department's monitoring exercise. Instead, he had to settle to discussing just part of the preliminary investigations where the department had come across an uncovered trench on the Sliema promenade, which was part of the fairy lights project.
"We are concerned about the open trench and the allocation of this work, which was not done according to regulations and according to proper procedures. The work amounted to €29,500. The problem, at this point, is one of public safety. The trench is uncovered and, since the council allocated this work, the council is responsible if anyone gets hurts," he said. He told the council that if it wanted to take corrective action to remove the danger, he was prepared to suspend his ruling, freezing all council payments, to remove the danger because "public safety is an overriding concern".
When the council continued its meeting, discussing non-financial issues, chaos broke out when Nationalist councillor Julian Galea objected to Labour councillor Martin Debono recording the proceedings.
A war of words ensued and Mr Dimech, after viciously banging the mayor's hammer to restore order, ruled that Mr Debono was in order and could record the proceedings of the meeting.
Mr Galea, along with other PN councillors Johanna Gonzi and Cyrus Engerer, continued to complain until Mr Dimech hurriedly passed a motion to suspend the meeting indefinitely "until everyone calms down".
Mr Galea pointed out that all he asked for was whether the recording was permissible at law and that such a question did not merit the suspension of the meeting.
The councillor used the term "illegal" when asking whether it was permissible and Mr Dimech retorted with a warning that he would sue for libel if he used that word again.
Mr Dimech went ahead with the motion, seconded by PN councillor Bobby Calì and called a vote.
All three Labour councillors - Mr Debono, Marianne Aquilina and Nicolai Gauci - voted in favour, along with PN councillors Sandra Camilleri and Edward Cuschieri. The rest, Mr Galea, Dr Gonzi, Mr Engerer voted against.
The meeting lasted just over an hour.