The police will be issuing fraud charges against the directors of a solar panels supplier following an investigation into an EU fund scheme.
Police sources confirmed that the economic crimes unit had unravelled a scam through which the suspected supplier could acquire EU funds through a scheme being administered by Malta Enterprise.
It was Malta Enterprise itself that reported the matter to the police after preliminary analyses of funding applications made by the company in question raised suspicions of irregularities.
The ERDF energy grant scheme provides EU financing to commercial enterprises to invest in power-saving measures and alternative energy sources.
Companies could apply to receive half of their investment on alternative energy sources through the scheme. In some cases, the EU grant amounted to almost €100,000 per firm.
According to the scheme's rules, applicants had to supply three different quotes from three different suppliers with their project plans.
The police found that one particular PV supplier was providing applicants with three quotations, under different names, in such a way that the company would be assured of supplying the equipment itself at an inflated price.
“We found that two of the quotes were fictitious and one was inflated,” the police sources said. When indications of irregularities first emerged, Malta Enterprise immediately suspended the funding scheme. A senior official said the scheme was reopened following the conclusion of investigations by the police.
“We are in the process of informing all beneficiaries of their allocations,” the official said.
Asked whether applicants connected to the alleged fraudulent supplier would still be eligible for funds, the official said that, following discussions with the Chamber of Small and Medium Enterprises – GRTU, it was decided that all eligible applications would be processed, although grants would be revised downwards.
“Many of the applicants were cheated by the PV installer and didn’t have a clue that they were being used,” the official said.
“While we are getting on with our job, we now expect the police to prove their findings in court,” the official added.
This is not the first time that PV resellers have run into trouble.
In 2010, a firm was involved in a similar probe connected to a scheme enabling people from the small Gozo village of San Lawrenz to invest in photovoltaic panels.