Criminal action may be taken over alleged Luqa council fraud

The findings of an investigation into claims of misappropriation of public funds at the Luqa council were yesterday passed on to the Attorney General for possible criminal action. The investigation was carried out by the Internal Audit and Investigation Department within the Prime Minister’s Office.

Sources close to the Labour-led council confirmed that the investigation looked into allegations of financial irregularities and misappropriation of public funds, running into thousands of euro.

The target of the investigation was the council’s former executive secretary, who stepped down earlier this year after reaching pensionable age. The alleged mimanagement and misappropriation of public funds dates back to 2007.

The investigation found discrepancies in the receipts for payments which were covered by the council’s petty cash.

There were also discrepancies in other council receipts and in cash paid by the council for certain services rendered but which were not covered by receipts.

Sources said that when he was questioned by investigators from the Internal Audit and Investigations Department, the former executive secretary denied pocketing any money and said the cash involved was used to cover expenses incurred by members of the local council.

The Internal Audit and Investigations Department started investigating the council after the Department of Local Government found enough prima facie evidence for the matter to be investigated further.

When contacted late yesterday, the Director of Local Government, Martin Bugelli confirmed that the report had been finalised and had been passed on to Attorney General Silvio Camilleri for further action, possibly criminal.

“The initial findings of the Internal Audit and Investigations Department were serious enough for the possibility of criminal action to be considered so the report was referred to the Attorney General for possible further action,” he said when asked.

The Internal Audit and Investigations Department is currently also investigating the Sliema local council over the extension of a tender way beyond the amount the council could legally authorise without issuing another call for tenders.