The paying agency responsible for the allocation of EU agricultural funds has been asked to compile a report to be presented to the European Commission’s Internal Audit and Investigation Department following a report by Times of Malta.
The European Commission’s Directorate General for Agriculture and Rural Development has contacted the paying agency in connection with the allocation of funds under the Maltese rural development programme following this newspaper’s reports on a Qrendi chicken farm that benefited from close to €400,000 in EU funds through applications filed by different family members as separate legal entities.
The paying agency said “this is within the rules of the measures concerned... the beneficiary was eligible for the funds as the applications were submitted under two different measures and different calls”.
But upon further probing, it emerged that at least another eight beneficiaries received maximum funding twice under the same stream of funds (see box).
The maximum allocation under each stream (Measure 121 and Measure 123) is €150,000 which means these beneficiaries received €300,000 under two calls for applications. Meanwhile, farmers have complained to Times of Malta that they were left out of the scheme while others twice got the maximum funds available.
An EU Commission spokesman told The Sunday Times of Malta that the Maltese paying agency gave assurances that the submitted applications were eligible and respected the maximum ceilings per application. But the Commission is requesting further documentation.
EU rules are clear that the same type of investment should not be ‘double’ financed
“EU rules are clear that the same type of investment should not be ‘double’ financed. Double financing occurs when we are paying twice for the same investment or other types of eligible activity... The Commission will further follow up these proceedings,” a spokesman said.
The Commission clarified that a single project can consist of many different operations that can be funded through several measures. Whether all is in line will be clear once they receive the documentation.
EU auditors lambasted the agricultural paying agency in 2010, saying it was not up to standard. It found examples of insufficient audit trails, miscalculations of aid eligible to farmers and payments made before anomalies were solved.
Some of the beneficiaries receiving maximum funding twice under the same funding stream
| Beneficiary of €150,000 | Project / Location |
| Parnis Salvinu Measure 121 (2009) |
Modernisation of cattle farm - Sannat |
| Parnis Salvinu Measure 121 (2011) |
Construction of cattle yard - Sannat |
| St Rita Farm Measure 121 (2009) |
Modernisation of dairy farm - Qormi |
| St Rita Farm Measure 121 (2011) |
Structural improvements on dairy farm, equipment & PVs - Qormi |
| Wistin Muscat & Sons Ltd Measure 121 (2009) |
Farmstock live production systems - St Paul’s Bay |
| Wistin Muscat & Sons Ltd Measure 121 (2011) |
Farmstock live production and fodder stores with renewable energy & water savings - St Paul’s Bay |
| Tabone Saviour Measure 121 (2009) |
Improving quality, environment and employee satisfaction - Kerċem |
| Tabone Saviour Measure 121 (2011) |
Modernisation & upgrading of farming operations - Kerċem |
| Vella Farms Measure 121 (2009) |
Dairy farm upgrading & reservoir and PVs - Naxxar |
| Vella Farms Measure 121 (2011) |
Modernisation of dairy farms - Naxxar |
| Bugeja Mario Measure 121 (2009) |
Modernisation of cow farm - Xewkija |
| Bugeja John Measure 121 (2011) |
Modernisation of cow farm & water reservoir - Xewkija |
| Emanuel Delicata Winemaker Measure 123 (2009) |
A quality focused eco-friendly approach to premium white wine - Paola |
| Emanuel Delicata Winemaker Measure 123 (2011) |
New grape-receiving, processing area and wine fermentation hall - Paola |
| Magro Bros Measure 123 (2009) |
Developing niche market for ready-to-serve Maltese food - Xewkija |
| Magro Bros Measure 123 (2011) |
Manufacturing sauces into single portion cups & sachets - Paola |
Source: Agriculture funds’ paying agency.