Students' House handed to KSU, rented in breach of regulations

The KSU University Students Council were never granted title by the University over Students' House, and the council, therefore, could not lease out parts of the building, the Auditor-General said today in a report to Parliament.

The report was requested by the Parliamentary Public Accounts Committee.

The Auditor said there had been shortcomings by the Universitry of Malta in never having regularised the position. However the actions by the students council in leasing parts of the building were not conducive to accountability and transparency.

The Auditor called on the University and the Council to regularise the situation.

The auditor also said he was concerned that the Disposal of Government Land Act did not preclude autonomous (public) bodies from disposing of immovable assets without the monitoring of competent authorities.

The inquiry had been requested by Labour MP Owen Bonnici in December.

He had asked the Auditor-General to investigate whether government rules were broken when parts of Students' House were handed to the University Students' Council, which then rented them out for commercial purposes.

He noted that it had resulted from a parliamentary question answered by the Minister of Education that part of the building had been handed to the University Students' Council for purposes of administration.

The Students' Council had then rented out the lower floor to businesses, which paid their rents to the council.

Dr Bonnici said government rules were not followed in the granting of these properties and the decisions on who the properties were leased to and at what price was taken solely by the students' council in a process which was not transparent.

Shortly after the inquiry was requested, the KSU said the revenue from the rental of outlets at Student's House were a vital source of income and funded a good part of the projects conducted by the council for the benefit of students.

The council said a decision had been taken by the University Council in March 1994 to divide the building formerly known as 'University House' into 'University House' and 'Student's' House', with the latter made subject to KSU's administration.

KSU said it was a totally non-profit organisation, which received no public funds whatsoever. Its financial independence was one of the crucial characteristics that guaranteed KSU's autonomy and independence, acting as the highest student representative body at the University of Malta.

"KSU feels that such a request has warranted an unnecessary attack on the autonomy and integrity of not just KSU, but also the numerous student organisations which are housed in Students' House.

"KSU has always been transparent in all its dealings pertaining to the administration of Student's House. Moreover any relevant information is freely available to all University of Malta students, at the KSU annual general meeting."